Collection agencies are businesses that specialize in recovering unpaid debts on behalf of creditors. When individuals or companies fail to pay their bills, creditors may hire these agencies to collect the outstanding amounts. Collection agencies typically charge a fee or take a percentage of the money they recover. These agencies use various methods to contact debtors, including phone calls, letters, and sometimes legal action. They must follow specific laws, such as the Fair Debt Collection Practices Act, which protects consumers from abusive practices. Their goal is to help creditors regain lost revenue while ensuring that debtors are treated fairly.