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
- 5 High-Yielding Dividend Stocks to Buy in October
- 3 High-Yield Stocks Retirees Should Consider Avoiding
- Healthcare's Trick or Treats: What We're Watching in October
- How Will Rising Interest Rates Affect Your Dividend Stocks?
- How the Taxpayer Advocate Is Fighting for You
- Dealing With Debt Collectors the Right Way