Collection Agency vs. Collection Law Firm

What is the difference between the two. A collection agency is a licensed entity. It must be licensed to collect in all states that require it. Some stated require that there be a license in place before a call can be made. These days be cautious. If you are not licensed then you have a possibility of getting caught for operating without a license. Governmental agencies are cracking down on everything. In most cases this is a call center with people sometimes brow beating the debtor. Attorney generals are going after these violators. It is not worth it to get caught.
Collection law firms, are managed by a duly licensed member of the bar association. They too must be licensed to collect by the various states. If there are dunning debtors then they too must be licensed as a collection agency. They operate much the same way as the agency if they have a call center;. The difference is that the law firm can file the lawsuit . The collection agency has find the attorney to institute the law suit.

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