A collection agency is the business oriented agency which is concerned with collection of money of debt from the lenders ad companies.
What a collection agency is all about
There are many businesses prevailing and making money in different parts of the world. Among such profitable businesses, the one of collection agency is very profitable one. Basically this business is concerned about the pursuing of the collections and debts which are owed by certain individuals and businesses. It is important to pursue the debts and payments which are owed by the individuals and companies. When these debts and payments are not obtained on time, it becomes important to pursue them. There are many collection agencies working in the world right now and these agencies are efficiently collecting funds in the form of debts and loans.
Agents of collection agencies
Most of the collection agencies work with their agents of the creditors who hire them for pursuing and getting their money and loan from the borrowers. These agents who work for the specific creditors usually charge some amount of money for their work. This charge is based on the percentage of the total amount collected from the borrower. Collection agencies are also of many kinds. Basically the two types of collection agencies are there. The most important one is the first party agency. These agencies act as the subsidiaries of the original company for which these are working.
Third party agency
Another major type of the collection agency is the third party agency. These are the separate companies which collect the debts on their own and then they charge certain fee for that. In these cases the debt buyers purchase the debt and then it is collected and the fee for its collection is obtained on the basis of percentage. The major rules are same for the collection agencies all over the world. However in some cases the rules and regulations of the collection agencies differ about different countries. Setting of rules and regulations for the collection agencies and their establishment is largely dependent upon the constitutional financial conditions of that specific country.