You owe money to someone.
You aren’t paying it.
They get tired of waiting, and assume you won’t ever pay.
They don’t have lawyers or other means by which to force you to pay.
So, a debt collection agency says “Hey, we will pay you 1% of what that guy owed you, which you must admit is more than the 0% you think you will get from him. In exchange, you give us legal authority to say what he owes us now owed to US instead. If he ever pays, all of what is paid goes to us.”
The people you owe money admit that 1% is more than 0% and take the deal.
Now the debt collector comes for you. They DO have lawyers or other means to force you to pay.
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