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Debt Relief:Collection Agency: Difference between revisions
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* Bad debt is referred to a collection agency because the debtor has ''poor money management skills, is ill, or has a lack of desire to pay'' what is owed. | * Bad debt is referred to a collection agency because the debtor has ''poor money management skills, is ill, or has a lack of desire to pay'' what is owed. | ||
*Collection agencies charge a percentage of what is collected as a fee for the service. | *Collection agencies charge a percentage of what is collected as a fee for the service. | ||
*The methods used by credit agencies to collect unpaid accounts are telephone calls to the debtor, lawsuits, and garnishments. Collection agencies will provide a pay plan as well. | *The methods used by credit agencies to collect unpaid accounts are telephone calls to the debtor, lawsuits, and [[ Debt Relief:Definitions#garnishments|garnishments]]. Collection agencies will provide a pay plan as well. | ||
*If the debtor does not pay using a pay plan, the collection agency will '''sue''' or '''garnishee''' the wages until the debt is settled. | *If the debtor does not pay using a pay plan, the collection agency will '''sue''' or '''garnishee''' the wages until the debt is settled. | ||