Are collection agencies’ operations legal?
How do collection agencies operate? Are their operations legal? I do not have a contract with a certain collection agency but they have been harassing me over a long period of time over debt I owed another company. Meanwhile I have been paying them but the balance only increases. What do I do?
Debt collection companies buy debt at a discount from other companies and try to make a profit by collecting from the defaulting debtor. The debt is ceded to them so they have the right to collect, and add collection fees, which sometimes are exorbitant or inflated. You should demand a statement and get a debt counsellor or an attorney to have a look as they how the interest and charges are computed. It’s termed reconciliation.