how much do debt collection agencies get
When creditors do not receive payment over a period of time, at least 90 days in most cases, they often hire another company to chase the past due amount. The company they hire is a debt collection agency. Debt collection agencies pursue the debt and receive a percentage of the amount they collect. That arrangement accounted for about half ($6.6 billion) of the industryâs revenue in 2014. The other popular move is for the collection agency to purchase the debt from the creditor and try to collect the entire amount, or some profitable portion, themselves.