Collection agency referral

A collection agency referral is the step where an unpaid parking citation or charge is handed to a third-party debt collector after notices go unanswered. In the US, collectors working consumer debts may be subject to the federal Fair Debt Collection Practices Act and to state rules, and whether a private parking charge can be collected at all depends on state law. Referral usually comes after the final notice, and collectors typically keep a percentage of what they recover.

Also called: Sending to collections