Do You Know What a Collection Agency Does?

http://www.insidearm.com/news/00013570-do-you-know-what-a-collection-agency-does/

If you ask the average person, “What does a debt collection agency do?” they would most likely respond, “They, uh…collect debts.” But ask them to elaborate a little and you might get something that starts like, “Well, first they buy a bunch of debt for pennies on the dollar, then…” This is where they start getting it wrong.

It’s not their fault. A common refrain in recent press coverage of collection agencies is that the debt collectors making the calls are doing so on their own behalf. The phrase, “pennies on the dollar” started to creep into coverage of the debt collection industry about five years ago, around the time that the press discovered there was a whole industry of debt buyers.

To read the rest of the post, please visit insideARM.com’s blog on Forbes.com.