Legal Definitions - collection agency

A collection agency is a person or company that is hired to collect debts that are owed to another person or company. This means that if you owe money to someone and you are not paying it back, they may hire a collection agency to try and get you to pay.

For example, if you owe money to a credit card company and you are not making your payments, the credit card company may hire a collection agency to try and collect the debt from you. The collection agency will contact you and try to get you to pay the debt.

It is important to note that not all people or companies can be considered collection agencies. For example, banks, trust companies, licensed attorneys, and insurance companies are often excluded from the definition of a collection agency.