By definition, a debt collector is anyone who collects debts owed to others on a regular basis. There are three major types of debt collectors: in-house collectors, agency collectors, and attorney collectors. In-house collectors work for the stores, banks, oil companies, credit card issuers, and other entities who extend credit. Such collectors may give you extra time to pay if you have a legitimate problem and seem sincere about repaying the debt. However, you probably won't be offered a reduced interest rate or other deals unless your account is several months behind. Collection agencies are companies who receive your account after the original creditor has unsuccessfully attempted to collect the debt, then charged it off. The agency is paid a percentage of what they're able to collect, generally 15 to 25 percent of the amount brought in. Agency collectors work from a computer database provided by the original creditor, containing information such as your address and phone numbers, purchase history, and employer. Attorney collectors are lawyers or attorneys who regularly seek to collect debts. Like all debt collectors, attorney collectors are required to follow certain rules when making collection attempts, as outlined in the Fair Debt Collection Practices Act.
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