Debt Collecting

  Debt collection agencies pursue debts owed by an individual or companies. They are third-party agencies because they are not originally part of the contract. Most agencies serve as agents for creditors and they earn by collecting debts for a fee or a percentage of the amount owed.

Some agencies collect debts even up to the extent of using threats if the debtor is unable to pay. The Fair Debt Collection Practice Act protects the debtors from harassment made by agencies. Threats such as physical violence should not be used by collectors when collecting debts.