Consumer collections involves the process of recovering delinquent balances owed on an account that was opened primarily for personal, family, or household purposes. Such accounts often include, but are not necessarily limited to credit cards, car loans, medical bills, pay day loans and the like.
The recovery process usually begins with the creditor attempting to prompt payment through letters and phone calls. Once those efforts prove to be unsucessful, a creditor may send the account to a collection agency for a fresh round of phone calls and collection letters. If payment is still not received, the account may be referred to a law firm to pursue legal action.