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What Is Not Contained in a Collection Agency Agreement

When it comes to collections agency agreements, there are a few important things that are often included such as the scope of work, the fees charged, and the responsibilities of both the agency and the creditor. However, there are also some things that are not typically contained in these contracts, which are important to understand.

Here are a few examples of what you will not find in a collection agency agreement:

1. Specific payment arrangements: While the agreement may outline the fees charged by the agency, it will not typically include specific payment arrangements for individual accounts. The process of negotiating payment arrangements is typically handled on a case-by-case basis between the agency and the debtor.

2. Guarantees of success: Collection agencies cannot guarantee that they will be able to collect on a particular account, and as such, there will be no guarantees of success included in the agreement. The success rate of a collection agency will depend on a number of factors, including the type of debt, the age of the debt, and the debtor`s ability to pay.

3. Details of debt collection tactics: While the collection agency will outline its general approach to debt collection in the agreement, it will not typically include specific details about the tactics it will use to collect on individual accounts. This is for a few reasons, including the fact that tactics may need to be adjusted based on the specific situation, and also to protect the agency from liability.

4. Legal advice: Collection agencies are not authorized to provide legal advice, and as such, the agreement will not include any legal advice or guidance. If the creditor needs legal advice regarding debt collection, they must consult with an attorney.

5. Confidentiality provisions: While the collection agency will take steps to protect the confidentiality of debtor information, this is not typically included as a specific provision in the agreement. However, collection agencies are required to comply with federal and state privacy laws, such as the Fair Debt Collection Practices Act (FDCPA) and the Gramm-Leach-Bliley Act (GLBA).

In conclusion, collection agency agreements are important contracts that outline the responsibilities and fees of both the agency and the creditor. However, they do not typically include specific payment arrangements, guarantees of success, details of debt collection tactics, legal advice, or confidentiality provisions. It is important for creditors to understand what is and is not included in these agreements, and to consult with an attorney if they have questions or concerns.