There are 2 typical setups… 1. they are hired by the company you owe money to; 2. they buy debt at a discount and then try to collect for a profit.
1. You owe your credit card company $1000. They hire Goons, Inc. to collect from you in return for a commission on money collected.
2. They sell your $1000 account in default to Shakedown Corp. for $250 and move on from you entirely. Shakedown then harasses you until you pay them. Anything they make above $250 is revenue for the company.
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