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Debt Collector
Debt collector is referred to any person or business that is charge of collecting debts that are owed or were owed to some other person. It is sometimes called as a collection agency. Collection agency or debt collector operate as the agent for the credit providers and collect debt for certain percentage in the debts or for some fee. There are also other agencies exclusively for debt buying called as debt buyers.
They purchase debts from creditors usually for the face amount and collect the full balance from the debtors. The amount receivable is usually shown as loss by the creditors as they pass the debts to a collection agency.
Debt collection agencies are known for their threatening behavior. They even harass or coerce people. They have very bad reputation. But collection agencies are also governed by state and federal laws. Those laws prohibit certain abusive practices. Non- conformance to the law may result in lawsuits or government regulatory actions.
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