The competition in the field of collecting delinquent debt continues to rise with the amount of indebtedness as well as the slow economy. This leads to a higher demand for the services of commercial collection agencies, multiplying their profits and levels of success.
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The label collection agency is frequently applied to third-party agencies, they are named that because they were not a party to the original contract. The creditor gives accounts directly to such an agency on a contingency-fee basis, which ordinarily at first costs nothing to the creditor or merchant, except for the cost of communications. This be that as it may is dependent on the individual service level agreement that exists between the creditor and the collection agency.
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In a business column dated January 20, Baltimore Sun writer Jay Hancock seems to delite in the fact that a prominent accounts receivable management firm filed bankruptcy in the midst of an unemployment-driven recession. Speculation suggests the underlying message of the article was to threaten violence against collectors.
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