Collection Account Financial Glossary

What is it? When a person does not pay back his loan, it is considered a collection account. Once the debt is charged off, the account will be assigned to a collection agency who will also report the debt as a collection account. Many times a persons credit report will show a charge-off and collection account for the same debt. Whenever a collection agency gets involved, the debt ultimately lands on the consumers credit report(s).

Finance Term Definition Added By: Rebecca

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