Collection cost
Encyclopedia
A collection cost is incurred to collect debt that is owed. This could include expenditures for hiring a collection agency
. Some contracts and regulations prescribe liquidated damages
for collection costs. When collection costs occur, the debtor has pay off debt to get the collector out of collection cost.
Collection agency
A collection agency is a business that pursues payments of debts owed by individuals or businesses. Most collection agencies operate as agents of creditors and collect debts for a fee or percentage of the total amount owed....
. Some contracts and regulations prescribe liquidated damages
Liquidated damages
Liquidated damages are damages whose amount the parties designate during the formation of a contract for the injured party to collect as compensation upon a specific breach ....
for collection costs. When collection costs occur, the debtor has pay off debt to get the collector out of collection cost.