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When creditors do not receive payment over a period of time, at least 90 days in most cases, they often hire another company to chase the past due amount. The company they hire is a debt collection agency. Debt collection agencies pursue the debt and receive a percentage of the amount they collect.
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Nov 15, 2018 · At this point, most major banks will hire a collection agency to collect the debt. And after a few more months, the banks will typically sell the debt to a collection agency. When banks sells the debt, they wipes their hands of the relationship. The CFPB has ordered the company to pay about $1.83 million in refunds to over 50,000 consumers ...
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