A collection agency is an organization that specializes in the collection of overdue debts. They are best known for hassling people who owe money by telephone or in person with a knock on the door.
Creditors who feel that your bills are overdue and have failed to talk you into payment can decide to turn the bill over to a collection agency. The collection agency usually keeps a portion of funds collected. They can also attempt to garnish wages.
Related Fool Articles
Recent Mentions on Fool.com
- Why ExxonMobil Is a Strong Long-Term Pick
- Tech Giants Raise Their Voices Against Government Data Collection
- How 23andMe Can Spur Growth for These Diagnostics Companies
- 3 Surprising Lovers of Low Interest Rates
- Judge: Detroit Eligible for Chapter 9 Bankruptcy; Pensions Not Secure
- Is China Punishing Qualcomm?