A debt collection agency is a business that specializes in recovering unpaid debts on behalf of creditors. When individuals or companies fail to pay their bills, the original creditor may hire a debt collection agency to pursue the outstanding amount. These agencies use various methods to contact debtors, including phone calls, letters, and sometimes legal action. Debt collection agencies operate under specific laws and regulations to ensure fair practices. They must follow guidelines set by the Fair Debt Collection Practices Act (FDCPA) in the United States, which protects consumers from abusive or misleading tactics. Their goal is to help creditors recover funds while treating debtors respectfully.