What is Debt Collection

The reason for a collection agencies existence is to find individuals who owe businesses money and get them to pay there outstanding debts. Most of these collections services charge some sort of fees or simply earn a percentage of the total amount owed by the individual.

There are a few different kinds of Debt Collection Agencies. There are first-party Debt Collectors who are usually extensions of the company to which the debt is owed. There are third-party agency’s that function as there own entity, contracted out by the company seeking to get back funds owed. There are also Debt Buyers who buy a percentage of the debt owed and go about collecting it on there own.

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