Collection agencies collect debts on behalf of creditors
A collection service is any business entity retained by a creditor to collect a debt. Normally, a collection agency or debt recovery service. The entity earns its fee by collecting a percentage of the debt. Collection services collect consumer debt mostly through coercion, threats, and filing lawsuits.
Collection agencies are notorious for violating consumer rights and are often accused of unconscionable acts of intimidation and threats in violation of federal and state law.
The Federal Trade Commission Regulates Debt Collectors and protects consumers from unfair and illegal practices.
