Third-party Debt Collection Agency

A third-party debt collection agency is responsible with handling the daily operations of an account when a creditor places accounts with them. This covers the majority of these accounts' communication and collecting efforts. Accounts that have been closed or placed should show this status in the originating creditor's billing or collection systems. This facilitates communication between the debtor and the third-party agency and keeps client involvement to a minimum except when absolutely necessary.

It is crucial that the creditor and agency receive real-time or nearly real-time information on balances, credits, and debits. Reduced likelihood of FDCPA and other regulatory violations result from accurate, reconciled balances and statuses.