What is a credit agency?

A credit agency is a third party company that has been hired by a creditor to collect on a specific debt. These agencies work on a “per collection” fee or for the motivation of a percentage of the debt they collect. The agencies are subject to federal laws and regulations that regulate what they can and cannot do in efforts to collect on a debt. If a credit agency violates the rules, the agency can be subject to lawsuits or sanctions by the government.