Collection cost

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. ↑ http://www.taxes.state.mn.us/taxes/collection/publications/fact_sheets/CM2_009328.pdf
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