Collection Agencies
Collection agencies work on what is, essentially, a commission basis. They
get a cut—sometimes as much as 50 percent—of any money they collect.
The rest of the money then goes to the original creditor.
In a few cases, collection agencies will actually buy debts from credit
companies and collect these debts as their own. However, this practice has
come under closer government scrutiny…so it’s not as appealing
to collectors as it once was.
Needless to say, collection agencies are very motivated to extract whatever
money they can from you. That’s how they get paid.
That’s one reason people at collection agencies are not known for their
charming telephone demeanor. However, they also cannot get on the phone and
simply rail at you, day and night.
Next: Debt Collection
Laws |
