First-party Agencies
Some collection agencies are departments or subsidiaries of the company that owns the original debt. First-party agencies typically get involved earlier in the debt collection process and have a greater incentive to try to maintain a constructive customer relationship. Because they are a part of the original creditor, first-party agencies may not be subject to legislation that governs third-party collection agencies.
These agencies are called "first-party" because they are part of the first party to the contract (i.e. the creditor). The second party is the consumer (or debtor). Typically, first-party agencies try to collect debts for several months before passing it to a third-party agency or selling the debt and writing off most of its value.
Read more about this topic: Collection Agency
Famous quotes containing the word agencies:
“While it is generally agreed that the visible expressions and agencies are necessary instruments, civilization seems to depend far more fundamentally upon the moral and intellectual qualities of human beings—upon the spirit that animates mankind.”
—Mary Ritter Beard (1876–1958)