Third-party debt collection agencies are usually used by banks and other credit organizations who you may owe money to. When these organizations have difficulty getting payments from the consumer they hire third-party agencies that use collection agents to collect the debt. A debt collection agency supposed to function under the limits and guidelines of the federal law known as the Fair Debt Collection Practices Act. Unpaid credit accounts and debt collection accounts may appear on your credit report, affect your credit score and prevent you from getting approved for credit applications, loans, jobs and housing rentals.
You should consult someone trustworthy and to your research when dealing with a debt collection agency since they are not exactly known to be very honest or straightforward in their practices.