Types of Collection Agencies

Financial Credit Collection

Commercial credit collection agencies provide services to the financial sector like banks and financial institutions. The types of debts range from auto loans to credit cards to mortgage payments. These credit collection agencies buy bad debts at discounts from banks, retailers, and auto financiers and then engage in the debt recovery process.

Health Care Credit Collection

The prime motive of a health care provider is to ensure that a patient receives quality and timely medical attention. An additional responsibility to collect debts may dilute the focus of the health care provider and also affect the financial strength of the organization. Hence a health care provider can agree to partner with a credit collection agency for any legal debt recovery. The methods employed for debt recovery are determined by agreement between the healthcare provider and the collection company, in line with the parameters allowed by law.


Credit collection agencies also offer their services to retail business operations. Debt collection for these creditors includes debts like unpaid health club memberships and telephone bills.

Bad Check Recovery

Bad checks/NSF can be detrimental to the cash flow of a business and the collection of bad debts arising due to fraud can become an unwieldy task for a business. Collection agencies are equipped with the necessary know-how and resources to tackle such cases involving bad checks. Such collection agencies would pay the receiver an up front sum of a certain percentage of the face value of the check.

Outsourcing the credit collection process allows the creditor to pass off debt liability to an agency that is better equipped to recover these bad debts. The bad debt account is evaluated and the creditor is paid an up front sum. The liability of the debts is then passed on to the collection agency.