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Collections Agency Information
What is a Collections Agency?
A collection agency is a
business that pursues payments on debts owed by individuals or
businesses. Most collection agencies operate as agents of
creditors and collect debts for a fee or percentage of the total amount
owed.
Private investigators sometimes offer collection agency services due to
their skills in tracking down people. If you're thinking about
providing collection agency services, be sure to educate yourself on the
requirements and state laws.
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There are many types of collection agencies, beginning with first-party
collection agencies who are often subsidiaries of the original company
to which the
debt is owed.
Third-party collection agencies are separate companies contracted by
a company to then collect the debts on their behalf, usually for a fee.
Another
growing industry is debt buyers, in which the collections agency purchases the debt
at a fraction of its initial value then attempts to collect upon it.
Each country
has their own rules and regulations regarding collection agencies and
their practices, which are quite often very aggressive. |
Collection
Agencies Resources
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Collection Agency Books |
Books that explain how to
start your own collections agency, or how to get a collection agency off
your back. |
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American Collectors Association |
ACA International (ACA), the
Association of Credit and Collection Professionals, is the
comprehensive, knowledge-based resource for success in the credit and
collection industry. Founded in 1939, ACA brings together more than
5,500 members worldwide, including third-party collection agencies,
asset buyers, attorneys, creditors and vendor affiliates. ACA
establishes ethical standards, produces a wide variety of products,
services and publications, and articulates the value of the credit and
collection industry to businesses, policymakers and consumers. |
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Commercial Collection Agency
Association |
The Commercial
Collection Agency Association. Include the collection agency code of ethics,
profiles, links, free literature, news and surveys. |
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Commercial Law League of America |
North America's leading
organization of collections, creditors' rights and
bankruptcy
professionals. Legislative news on collections and credit reporting.
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Consumer Data Industry Association |
Credit information.
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Credit Research Foundation
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Surveys and
publications. |
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Equifax |
Credit reporting
agency. |
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Experian
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Credit reporting
agency. |
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Debt Collection Practices Act |
The Federal Trade Commission
(FTC), the nation’s consumer protection agency, enforces the Fair Debt
Collection Practices Act (FDCPA), which prohibits debt collectors from
using abusive, unfair, or deceptive practices to collect from you.
Under the FDCPA, a debt collector is someone who regularly collects
debts owed to others. This includes collection agencies, lawyers who
collect debts on a regular basis, and companies that buy delinquent
debts and then try to collect them. |
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National Foundation for Credit
Counseling |
The National Foundation for Credit Counseling website. |
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Rate of
Collectability |
Collectability of delinquent commercial debts at time intervals
after due date. |
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TransUnion |
Credit reporting agency. |
Acronyms related
to the collections industry:
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- ABA - American
Bankers Association
- ABI - American
Bankruptcy Institute
- CCAA - Commercial
Collection Agency Association
- FDIC - Federal Deposit
Insurance Corporation
- FTC - Federal Trade
Commission
- MBA - Mortgage
Bankers Association
- NFCC - National
Federation of Credit Counselors
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