What is a debt collection agency?

A debt collection agency is a company that collects overdue payments from individuals or businesses who are in debt. In Utah, debt collection agencies are generally subject to state and federal laws such as the Fair Debt Collection Practices Act (FDCPA). These laws ensure that debt collectors are not allowed to use unfair or harassing tactics to collect payments. Debt collection agencies may purchase unpaid debt from creditors, in which case the debt collector becomes the creditor. The debt collector will then contact the debtor and attempt to collect payment. Payment arrangements or debt settlement may be recommended to the debtor as an alternative. Debt collection agencies may also represent creditors by filing lawsuits against debtors in court. In this case, the agency is acting on behalf of the original creditor and is legally entitled to collect the debt from the debtor. It’s important to be aware of your state’s debtor and creditor laws so you understand your rights and obligations. In Utah, you can visit the Attorney General’s website to learn more about the laws that protect you as a debtor.

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