Which statement about collection agencies is accurate?

Collection agencies typically operate by retaining a percentage of the funds they successfully collect on behalf of clients. This is a standard practice in the industry as it aligns the agency's compensation with its performance; the more they collect for a business, the more they earn. The percentage taken can vary widely based on factors such as the type of debt, the agency’s policies, or the agreement between the agency and the client.

The option stating that all agencies charge the same percentage overlooks the diversity in fee structures among different agencies, as different agencies can have varying rates based on their services or other considerations. Similarly, stating that agencies do not retain a percentage of the collected funds entirely dismisses their business model, which fundamentally relies on this practice. Moreover, most collection agencies do operate under a contractual agreement with their clients, contrary to the assertion that most operate without a contract, as contracts help outline terms, fees, and the responsibilities of both parties involved.