debt collection

Debt collection is the process used by creditors or collection agencies to recover overdue payments from individuals or businesses. When a person fails to pay a debt, the creditor may attempt to contact them directly to arrange payment. If these efforts fail, they may hire a collection agency that specializes in retrieving debts. Collection agencies may use various methods, such as sending letters or making phone calls. Consumers have rights during this process, such as protection from harassment and the right to dispute the debt. It's important to address debts early to avoid potential legal actions or negative impacts on credit scores.