|
|
Collection Agency
A collection agency is a business whose sole purpose is debt collection from individuals and businesses. Normally the agency operates on behalf of the creditor in the debt equation. The creditor might be a bank or other lending agency or even a credit card company seeking to exact payment from debtors whose obligations have fallen into arrears.
Another method of operation for debt collection agencies is a scenario in which the agency actually purchases the debt from the lender and then pursues repayment on its own. This allows a lending agency to remove the debt from the records of their accounts receivable and to write off the account in default as a loss.
Collection agencies do not have a good reputation, being known for threatening and harassing behavior. By federal law, however, such abusive behavior is illegal under the terms of the Fair Debt Collections Practices Act and should be reported.
More Terms Explained
|
|
|
| |
 |
 |
 |
| Suggest
an Article |
| Haven´t
found the article you are looking for, please suggest
your article. We value all your suggestions and
comments. |
 |
|
 |
|
 |
|
|
