Collections can refer to different things depending on the context. In the financial world, collections usually refer to the process of pursuing payments of money or other agreed-upon value owed to a creditor. Debt collection is the process of collecting past-due debts from borrowers, and it can be done by a collection agency or company. Debt collectors are third-party companies that work on behalf of another company to collect debts, and they can include collection agencies, lawyers, or debt buyers. Debt collection agencies specialize in collecting different types of debt, such as credit cards, medical bills, automobile loans, personal loans, business, student loans, and even unpaid utility and cell phone bills.

When a debt is sent to collections, it usually means the original creditor has sent the debt to a third-party person or agency to collect it. The debt collector may contact the debtor to retrieve payment for the debt on the creditors behalf. Debt collection is a federally regulated process, and debt collectors must respect the debtors rights. Debtors have rights, and collection agencies must follow certain rules and regulations when attempting to collect debts.

In summary, collections refer to the process of pursuing payments of money or other agreed-upon value owed to a creditor. Debt collection is the process of collecting past-due debts from borrowers, and it can be done by a collection agency or company. Debt collectors are third-party companies that work on behalf of another company to collect debts, and they can include collection agencies, lawyers, or debt buyers.