Quillinit
11:57
Warning
Info
LSDefine
Simple English definitions for legal terms
collection agency
Read a random definition: receipt
A quick definition of collection agency:
A collection agency is a person or company that helps other people collect money that is owed to them. They try to get people to pay back the money they owe. Some states have rules about who can be a collection agency and who cannot. For example, banks and lawyers are usually not considered collection agencies.
A more thorough explanation:
A collection agency is a person or company that is hired to collect debts that are owed to another person or company. This means that if you owe money to someone and you are not paying it back, they may hire a collection agency to try and get you to pay.
For example, if you owe money to a credit card company and you are not making your payments, the credit card company may hire a collection agency to try and collect the debt from you. The collection agency will contact you and try to get you to pay the debt.
It is important to note that not all people or companies can be considered collection agencies. For example, banks, trust companies, licensed attorneys, and insurance companies are often excluded from the definition of a collection agency.