Debt Collection

Debt collection is when a collection agency or company tries to collect past-due debts from borrowers. You might be contacted by a debt collector if you haven’t made loan or credit card payments and those payments are severely past due.

If you’ve co-signed a loan or you’re an authorized user on a credit card for someone else, you might also be contacted by a debt collection agency looking to get paid for money owed. Those overdue debts can be anything, including:

• Medical debt

• Car/auto loan debt

• Personal loan debt

• Credit card debt

• Student loan debt

• Unpaid utility and phone bills

Debt collectors are third-party companies that work on behalf of another company to collect debts. If a company works for the original creditor, the creditor pays the debt collector a percentage of the debt collected.