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Collection agency

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.

Expanded Definition

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.

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