Posted in Finance, Accounting and Economics Terms, Total Reads: 88
Definition: Debt Collector
A person or agency which is involved in the process of collecting or recovering due amount form the debtors for any company or an individual. This collectors can be any agency or company or an individual such as lawyer. They are also known as collection agencies.
Companies hires such professional when there payments are due and they find difficulty in reaching the debtors or want to save themselves from the collection process they outsource the job to these collectors for a fee .This practice is mostly done by financial institutes such as banks and credit providing companies for collecting their payments at regular intervals from their clients.
Debt collectors also does the job of maintain a record of payments made by the customers and dates when the payment will be due. They also contact the debtors and keep them updated about their payment dates and amount so that they cannot default in their payments to the companies.