Collection Agency

A company hired by a creditor to collect a debt that is owed. Creditors typically hire a collection agency only after they have made efforts to collect the debt themselves, usually through letters and telephone calls.

A company hired by a financial institution to collect a debt that is owed. Creditors typically hire a collection agency only after they have made efforts to collect the debt themselves, usually through letters and telephone calls. How the collection agency interacts with you in the collection of the debt is regulated by the Fair Debt Collection Practices Act.