Asked by Emily Cutler on Apr 28, 2024
Verified
Collection agencies may charge _________ for their services.
A) $50
B) a percentage of the bill
C) 50 percent
D) $35
Collection Agencies
Companies that specialize in recovering funds that are past due or owed by individuals or businesses.
Percentage of the Bill
The portion or fraction of a total bill calculated as a percentage, relevant in contexts like tips, discounts, or finance charges.
- Learn about compliance and ethical considerations in billing and collections, including handling of credit balances and disclosures required by regulations like the Truth in Lending Act and the Fair Debt Collection Practices Act.
Verified Answer
CS
Caitlin SaundersApr 30, 2024
Final Answer :
B
Explanation :
Collection agencies typically charge a percentage of the total amount collected from the debtor, rather than a fixed dollar amount. This percentage can vary depending on the agency and the amount of debt being collected.
Learning Objectives
- Learn about compliance and ethical considerations in billing and collections, including handling of credit balances and disclosures required by regulations like the Truth in Lending Act and the Fair Debt Collection Practices Act.