Credit Collection Agencies

Credit collection agencies are third-party organizations hired by lenders or creditors to recover unpaid debts from individuals. When someone defaults on a loan or credit account, the original creditor may outsource the collection process to these agencies, which contact the debtor to arrange payment. They use various communication methods and must follow legal guidelines during their efforts. Their goal is to recover outstanding balances while respecting consumers' rights. If the debt remains unpaid, the agency may report the debt to credit bureaus, affecting the debtor's credit score.