What is a debt collection agency?

A debt collection agency is a third-party organization that is hired by a creditor to collect past-due debts owed to the creditor. In Washington, debt collection agencies are governed by the Washington State Collection Agency Act. When a company or individual falls behind on payments to a creditor, the creditor may hire a debt collection agency to collect the money that is past due. The debt collection agency will then contact the debtor and try to recoup the debt that is owed. Depending on the amount of the debt, the debt collection agency may also take legal actions necessary to collect the debt, such as filing lawsuits and obtaining judgments against the debtor. Debt collection agencies typically receive a commission from the creditors for successfully recovering owed debts, so it is in their best interest to recover the debt. Debtors should understand their rights when dealing with debt collection agencies and should contact the Washington State Attorney General’s office if they feel they are being treated unfairly. Debtor and creditor law is complex and can be confusing. If you have any questions about debtor and creditor law in Washington, you should contact an experienced attorney who is knowledgeable in this area of law.

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What is a debt collection agency?

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