A Collection Agency is hired by creditors to collect unpaid debts. The agency usually sends reminders and notices to the debtor before hiring a collection agency. However, some creditors hire an immediate collection agency on behalf of the creditor after receiving a payment on an outstanding debt. In that case, the debtor will be charged extra for hiring an immediate collection agency early on in his recovery plan. Either way, when a debtor hires a collection agency, he’ll be charged accordingly depending on his financial situation and reason for hiring a company like this.Fees can vary greatly depending on several factors such as: whether it’s an immediate or later stage of recovery; if it’s court-ordered; and if there are any additional fees that must be paid directly to the creditor or collected via commission for the collector. Furthermore, some debts cannot have collections agencies associated with them since this could negatively affect outstanding cases with law enforcement agencies— who could levy more severe penalties for not paying their own debts via legal channels. This is why many creditors do not direct their clients towards companies like this when collecting unpaid debts since they’re likely charging too much for their services and it will hurt their clients’ chances of recovering their money quicker.