Debt Collection

Debt collection is carried out by collection agencies. A collection agency refers to any business that pursues money/payments on any debts that are owed by individuals or business's. Debt collection agencies work as agents for creditors, this could be for a fee or a percentage of the total amount owed by the debtor. Some debt collection agencies will buy the debts from the creditors for less than it is worth and then pursue the debtor for the full amount. In many countries debt collection agencies are governed by laws to prevent abusive practices and failure to adhere by them could result in lawsuits or government regulatory actions.