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The collection agency makes money only if money is collected from the debtor (often known as a "No Collection - No Fee" basis). Depending on the type of debt, the age of the account and how many attempts have already been made to collect on it, the fee could range from 10% to 50% (though more typically the fee is 25% to 40%).
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First-party collection agencies tend to nurture more constructive relationships with the second-party (called consumers or debtors) and are involved in the early months before they selling or passing the debt on to a third-party. The first-party writes off most of the value of the debt in the sale to a third-party collection agency. [38]: 62–3
In the United States, a commercial mail receiving agency (CMRA) is a private business that accepts mail from the Postal Service on behalf of third parties. [1] A CMRA may also be colloquially known as a mail drop. [2] A mailbox at a CMRA is called a private mailbox (PMB). [1]
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