A collection agency is usually a third-party not connected with the names on the original contract that is overdue or unpaid. The creditor will assign the collection agency with accounts that they need to pursue and the collection agency will do their best to recover the debt that is owed to the creditor. The third-party collection agency will usually take a part of the recovered debt as payment of their services, this is referred to as a pot fee. This fee usually ranges from 10% to 50%.
