A collection cost is the cost incurred to collect debt that is owed, a process called debt collection. This could include expenditures for hiring a collection agency. Some contracts and regulations prescribe liquidated damages for collection costs. When collection costs occur, the debtor has pay off debt to get the collector out of collection cost.[1]

References

  1. ↑ "Archived copy" (PDF). Archived from the original (PDF) on 2006-12-31. Retrieved 2008-07-29.{{cite web}}: CS1 maint: archived copy as title (link)
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