Debt collectors are individuals and agencies that collect debts owed to others, such as a bank, attorney, landlord, or other business or individual.

What does a collection agency do?

A collection agency is a company used by lenders or creditors to recover funds that are past due, or from accounts that are in default. Often, a creditor will hire a collection agency after it has made multiple failed attempts to collect its receivables.

Can collection agency pursue debt?

Debt collection agencies collect delinquent debts of all types: credit card, medical, automobile loans, personal loans, business, student loans, and even unpaid utility and cell phone bills. Being within the statute of limitations means that the debt is not too old and the creditor still can pursue it legally.

How does a collection agency work with the bank?

Collection agencies “buy” your account from the banks. “The collection agency is not a part of the bank,” says Villafuerte. “They are a third-party business [that] buys the delinquent accounts. The collection agency will now take over the responsibility of convincing you to pay your credit card debt.

What should I do if I get contacted by a debt collection agency?

If you’re being contacted by more than one debt collection agency at the same time it’s best to contact the original creditor to explain what’s happening. They should tell you which company is dealing with your debt and stop the other company contacting you. Some debt collection agencies use more than one trading name.

Who are the best debt collection agencies for small businesses?

Rocket Receivables, owned by TSI, is a debt collection agency specifically designed for small business owners. It caters to the healthcare, education, residential, trade, and retail industries,…

How is a debt collection agency regulated in the UK?

Most debt collection agencies in the UK are regulated by the Financial Conduct Authority (FCA) and hold a valid consumer credit licence. You can contact the FCA to check if a collection agency is licensed or check the FCA register .