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eeNation.com  >  Cities  > Texas  > Katy  >  Businesses of Katy  Debt Collectors/Debt Collector
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Debt is that which is owed; usually referencing assets owed, but the term can cover other obligations. In the case of assets, debt is a means of using future purchasing power in the present before a summation has been earned. Some companies and corporations use debt as a part of their overall corporate finance strategy.
A debt is created when a creditor agrees to lend a sum of assets to a debtor. In modern society, debt is usually granted with expected repayment; in many cases, plus interest. Historically, debt was responsible for the creation of indentured servants.
 
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The term collection agency is usually applied to third-party agencies, called such because they were not a party to the original contract. The creditor assigns accounts directly to such an agency on a contingency-fee basis, which usually initially costs nothing to the creditor or merchant, except for the cost of communications. This however is dependent on the individual service level agreement (SLA) that exists between the creditor and the collection agency. The agency will then take a percentage of the debt (usually between 10-50% ) that is successfully collected; sometimes known in the industry as the "Pot Fee" or potential fee upon successful collection.
 
 
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A collection agency is a business that pursues payments on debts owed by individuals or businesses. Most collection agencies operate as agents of creditors and collect debts for a fee or percentage of the total amount owed. Some agencies, sometimes referred to as "debt buyers", also purchase debts from creditors for a fraction of the value of the debt and pursue the debtor for the full balance. Creditors typically send debts to a collection agency in order to remove them from their accounts receivable records; the difference between the amount collected and the full value of the debt is then written off as a loss.[citation needed]

Debt collection agencies have a reputation for engaging in threatening behavior, harassment, and coercion.[citation needed] However, in many countries, collection agencies are governed by laws that prohibit certain abusive practices. Failure to adhere to such laws may result in lawsuits or government regulatory actions..
Businesses will compete to offer the best service at the best prices! Receive information and quotes from services in your area and compare prices today!...............................................................................FREE ESTIMATE
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Debt Collectors wanted! - List your business for free!
Debt Collectors wanted! - List your business for free!
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