What is a debt collection agency?

"Collection agency" is another term used to describe third-party debt collectors. These agencies are companies that specialize in recovering unpaid debt in collections. Sometimes a collection agency may end up reselling the debt to another agency. What is debt collection? Debt collection happens when a debt goes unpaid for a period of time.

What is debt collection & how does it work?

Debt collection happens when another company or debt collection agency tries to get you to pay the money you owe. If you’re behind on payments for several months, your debt may be sold to a collection agency that will contact you to arrange payment. Dealing with debt collectors can be stressful and embarrassing, but it’s common.

What is the debt collection rule?

On November 30, 2021, the Debt Collection Rule became effective. The rule clarifies how debt collectors can communicate with you, including what information they’re required to provide you. A debt collector may be trying to contact you because a creditor believes you are past due on the payments you owe on a debt. Read more