Who are considered first-party collectors?

First-party collectors are individuals or entities that are collecting their own debts. This typically refers to businesses or organizations that have provided goods or services and are now seeking payment directly from consumers who owe them. They have a direct and ongoing relationship with the debtor, which distinguishes them from third-party collectors who are hired by another entity to collect on debts that may not be theirs.

The context for this is important as it differentiates first-party collectors from other types of debt collectors. For instance, collection attorneys and debt buyers typically operate as third parties, meaning they are not collecting debts owed to themselves but rather working for someone else or purchasing debts to collect on. Agencies conducting investigations would not typically be involved in the collection process directly and are more focused on verifying information or compliance with laws rather than collecting payments. Thus, understanding the role of first-party collectors helps clarify the dynamics of debt collection practices, ensuring accurate recognition of different players in this field.