Collection agency services are some of the most well known services today. With the recent economic struggles of different companies and businesses, companies have a hard time keeping up with the different debts and accounts that they lend people. That is why companies who have a massive amount of accounts receivable make good use of collection agency services. Collection agencies are companies that specialize in the recovery bad debts or payment of accounts that are past due. They are usually hired by companies that lend money and have a high tendency of people defaulting in their payments or are paying later than the day of the deadline. Collection agencies manage this by making use of laws and the technology that is available to them. Consumers who are in debt are made to repay the money that they owe. This is the most basic understanding of the lender-borrower relationship. Collection agencies make use of the law by enforcing and instituting amendments that force debtors to pay the accounts due to the lender. Collection agencies also make use of technology by managing the different debts of the company that hires them. They make full use of accounting information systems and their different advantages. Accounting information systems are digital representation of accounts and balances. This allows for a more convenient way of managing accounts and different transactions. Collections agencies design their systems to focus more on accounts receivables and bad debt. Accounts receivable is the account that a company maintains in its records in order to keep track of the different transactions they have accomplished that were done via credit. Bad debts are the name of the account maintained by a company to keep track of accounts receivable that are most likely uncollectible. This usually leaves companies bankrupt and forces them to liquidate their assets. Collection agencies address this problem by serving as agents and give companies advice on debt restructuring or debt recovery. Collection agency services are geared towards enforcing laws that protect lenders and maintaining the lender-borrower relationship. Some examples of their services are debt collection, debt management and debt restructuring. These types of services are important to companies as it minimizes any losses that they may incur. Losses suffered by companies usually translate to investors straying away from the company. This means that investors would rather go elsewhere and put their money in a more productive project. Collection agency services have become more popular over the years because of the state of the economy. Businesses are suffering from the losses that are caused by bad debts and delayed payments. These bad debts have increased the need for businesses to use laws that allow them to collect payments. Recently, several states have passed laws that protect the consumer or the borrower. They have increased the value of items that serve as collateral and allow borrowers to keep those items. They have also allowed borrowers to maintain a high amount of money in their bank accounts. Despite these new laws, collection agencies are still going strong and they still enforce their methods to the best of their abilities.