Collection cost

{{Short description|Cost incurred to collect debt that is owed}}

A collection cost is the cost incurred to collect debt that is owed, a process called debt collection. This could include expenditures for hiring a collection agency. Some contracts and regulations prescribe liquidated damages for collection costs. When collection costs occur, the debtor has pay off debt to get the collector out of collection cost.{{Cite web |url=http://www.taxes.state.mn.us/taxes/collection/publications/fact_sheets/CM2_009328.pdf |title=Archived copy |access-date=2008-07-29 |archive-url=https://web.archive.org/web/20061231004246/http://www.taxes.state.mn.us/taxes/collection/publications/fact_sheets/CM2_009328.pdf |archive-date=2006-12-31 |url-status=dead }}