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
- This Obamacare Flaw Could Give Taxpayers a $345 Million Windfall
- Netflix, Inc. Finds a Partner in Japan
- Why Shares of HMS Holdings Corp Were Soaring Higher Today
- Ashley Madison Gets Hacked -- How Other Companies Can Avoid The Same Fate
- Mortgage Loans: Essential Information You Need to Know
- 5 Bond Market Facts You Need to Know