Collection Agency Definition and Legal Meaning

On this page, you'll find the legal definition and meaning of Collection Agency, written in plain English, along with examples of how it is used.

What is Collection Agency?

“Hired by a creditor, this business attempts to acquire a debtor’s payment who is delinquent or defaulted in loan payments. Typically, a percentage of the amount owed is taken by the collection agency as a fee. In some instances, the debtor may also be liable to the collection agency’s costs.