What are external companies that perform specialized collection efforts on difficult debtors called?

External companies that specialize in collecting difficult debts are known as collection agencies. These agencies are often hired by businesses to recover funds from debtors who have not responded to previous collection efforts. They utilize various strategies and resources to recover overdue amounts, ranging from sending reminders to negotiating payment plans, and sometimes even pursuing legal action if necessary. Collection agencies have expertise in managing delinquent accounts and use their knowledge of financial regulations and consumer protection laws to handle these situations effectively.

Payment processors are entities that handle transactions between customers and sellers, often facilitating electronic payments but do not focus on collections. Credit unions are cooperative financial institutions that offer savings and loan services, primarily focusing on member services rather than debt recovery. Accounts receivable departments typically work within a company to manage invoices and collect payments from customers, rather than serving as external specialists in debt collection.