Collection Agency
/kəˈlɛkʃən ˈeɪdʒənsi/
Definitions
- (n.) An entity engaged in recovering overdue debts on behalf of creditors, often through contact with debtors and negotiation of repayment terms.
The collection agency contacted the customer to arrange payment of the outstanding balance.
- (n.) A business specializing in purchasing delinquent debts from original creditors and attempting to collect directly for their own account.
The collection agency bought the defaulted loans at a discounted price to recover funds.
Forms
- collection agencies
Related terms
See also
Commentary
The term covers both third-party collectors acting on behalf of creditors and entities that buy and collect debts for themselves; definitions may overlap depending on jurisdiction.
This glossary is for general informational and educational purposes only. Definitions are jurisdiction-agnostic but reflect terminology and concepts primarily drawn from English and American legal traditions. Nothing herein constitutes legal advice or creates a lawyer-client relationship. Users should consult qualified counsel for advice on specific matters or jurisdictions.