Collection Agency

Collection Agency in United States

Plain-English Law

Collection Agency as defined by Nolo’s Encyclopedia of Everyday Law (p. 437-455):

A company hired by a creditor to collect a debt.

Practical Information

Note: Some of this information was last updated in 1982

A firm specializing in collecting overdue accounts receivable. It has no means of collection not available to the creditor, but is frequently successful in obtaining payment of past due accounts after the creditor’s collection system has failed. The agency is often successful because it has no interest in keeping the good will of the customer and can press its demands more vigorously. The customer also knows that his or her credit rating will suffer if he fails to respond to the agency’s demand. Claims, or accounts, are taken on a contingent basis if there is no collection, there is no charge. Rates depend on the amount of money collected and whether the collection is made by letter or personal call.

(Revised by Ann De Vries)

What is Collection Agency?

For a meaning of it, read Collection Agency in the Legal Dictionary here. Browse and search more U.S. and international free legal definitions and legal terms related to Collection Agency.


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