Collection agencies are businesses that collect past-due bills and accounts receivable for other persons or businesses in exchange for a fee. Collection agencies charge for their services one of three ways:
1) A flat fee.
2) A percentage of what is collected.
3) Through a direct sale of the delinquent accounts.
If you are trying to collect a small or medium sized debt, using collection agencies that charge a flat fee are probably your best option - collection agencies that charge a flat fee work just as hard to collect a small debt as they do to collect a large debt. Generally most collection agencies use one of three methods to collect debt:
1) Letters.
2) Direct contact via the telephone.
3) Litigation.
