What is the difference between 1st party collection and 3rd party collection?

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1st party collection involves the original creditor attempting to collect debts directly from the debtor, while 3rd party collection involves a separate agency hired to collect debts on behalf of the original creditor.

1st party collection is when the original creditor, such as a bank or credit card company, attempts to collect debts directly from the debtor.
3rd party collection is when a separate agency, not affiliated with the original creditor, is hired to collect debts on behalf of the creditor.
1st party collection often involves in-house collection departments within the company, while 3rd party collection agencies specialize in debt collection services for multiple creditors.
Examples of 1st party collection include a credit card company contacting a customer directly to collect an overdue payment, while examples of 3rd party collection include a debt collection agency contacting a debtor on behalf of a bank.

What is the difference between 1st party collection and 3rd party collection?

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