Collection Agency | How do they work?

Collection Agency | How do they work?

Collection agencies use many methods to convince the debtor to meet their financial obligations. Reporting to credit reporting agencies is a very common practice, which affects further credit from being extended to the debtor in the future. Collection agencies use phone contact and mailings, and investigate debtor’s assets to see how best to recover the debts. Locating the debtor’s employment and putting a lien on their paycheck is another way collection agencies recover debts that are owed.