Collection Agency

A collection agency is a business that collects payments on debts which are owed by individuals or businesses. They are the agents of the creditors, collecting debts for a fee or percentage of the total amount owed. Some agencies are referred as debt buyers who purchases debt for the full balance.This debts are generally sent to the creditors because they prefer it to remove them from their account receivable records. The difference between the collected amount and full value of the debt is then written off as a loss. They generally calls the debtor to inform him/her about his obigation to repay the debt. He also sometimes motivates debtors to pay off debt.