The agencies which pursue payments of debts owed by businesses or individuals is known as collection agency. They are agents of creditors and charge a percentage of the total amount awed or a fee for collecting debt. There are many kinds of collection agencies like first party agency and third party agency. Debt buyers collect the debt.

The Fair debt recovery Practices Act was formed in US in 1978; its main purpose was to promote debt collection. Under this act the debt collection may conduct business.

Debt collection is done by debt collectors who are highly motivated and convince debtors to pay their debt; they even misrepresent their rights and use abusive language to threaten the debtors. Debt collection calls are made to the debtors to inform them of their obligations and repayments.

International debt collection is more specialized field and less common; as it requires knowledge of different languages and different legal systems and laws. Collection agencies sometimes call family to know about the whereabouts of the debtor without discussing about the debt. They may ask for phone numbers, work of place or address. Collectors can only talk about debt recovery with the debtor, their attorney or their spouse. Debt collector should give the detail of his employer if the debtor asks for it.

Also read on Effective Debt Collection Methods