Collections Law Firm vs. Collections Agency
Updated March 11th 2023

Debt collection can be a challenging and stressful process, both for creditors and debtors. In some cases, the debtor is unable or unwilling to pay, which can lead to legal action. In such cases, creditors often rely on collection agencies or collection law firms to recover their debts. In this blog post, we will explore the differences between collection agencies and collection law firms.
What is a collection agency?
A debt collection agency is a company that specializes in collecting debts on behalf of creditors. They typically work on a contingency basis, meaning they only get paid if they successfully collect the debt. Collection agencies use various tactics to recover debts, such as sending letters, making phone calls, and reporting debts to credit bureaus.
What is a collection attorney?
A collection attorney is a lawyer who specializes in debt collection. They work on behalf of creditors to recover unpaid debts from debtors. Collection attorneys can take legal action against debtors, such as filing a lawsuit or obtaining a judgment against them. They can also negotiate with debtors to reach a settlement that is acceptable to both parties.
Collection attorney vs. collection agency
The main difference between a collection attorney and a collection agency is that can take legal action against debtors, while the latter cannot. Collection attorneys are licensed professionals who can represent creditors in court and file legal claims against debtors. Collection agencies, on the other hand, are not licensed to practice law and cannot take legal action against debtors.
Another key difference between collection attorneys and collection agencies is the level of expertise they offer. Collection attorneys have a thorough understanding of the legal system and can provide advice on complex legal issues related to debt collection. They can also handle cases that involve disputes, bankruptcy, and other legal matters. Collection agencies, on the other hand, are typically focused on the collection process and may not have the same level of legal expertise as a collection attorney.
When should you use a collection agency or attorney?
The decision to use a collection agency or attorney will depend on a number of factors, such as the amount of debt owed, the complexity of the case and the debtor's ability to pay. In general, it is best to use a collection agency for smaller matters.
In most cases, it is more effective to retain a collection attorney. Collection attorneys have a deep understanding of the legal system and can handle complex cases that involve disputes, bankruptcy, and other legal issues. They can also provide legal advice and representation in court, which may be necessary in some cases.
How to choose a collection agency or attorney
When choosing a collection agency or attorney, it is important to research and choose a reputable professional with a proven track record of success. Companies should seek a collections attorney that has experience in debt collection and can provide references from satisfied clients Retrievables' platform. It is important to considerthe firm's fees and transparency about processes and pricing.
Updated March 11th 2023