DEFINITION of 'Adjustment Bureau'

An organization that focuses on helping businesses collect outstanding debts from delinquent debtors. Adjustment Bureaus are also known as Collection Agencies. Most Adjustment Bureaus earn a percentage of the outstanding debt upon successful collection. An Adjustment Bureau is not a loan agency or a debt consolidation service, they serve their business clients as opposed to the debtors.

BREAKING DOWN 'Adjustment Bureau'

While most Adjustment Bureaus are privately owned, they operate under collection laws established by the federal government. These laws are in place to prevent abusive practices. Adjustment Bureaus must have expertise in collection and bankruptcy laws to help guide customers through the process. In addition, many Adjustment Bureaus choose to specialize in a specific type of collections. For example, medical claims or retail claims as opposed to being a collections generalist. Fees charged are usually on a sliding scale. For example, the larger the outstanding debt, the smaller the percentage earned. The amount earned on a $2000.00 balance might be 10%, but the amount earned on a $10,000.00 balance would be 8%.

RELATED TERMS
  1. Credit Bureau

    An agency that collects individual credit card information and ...
  2. Collection Agency

    A company hired by lenders to recover funds that are past due ...
  3. Debt Buyer

    A company that purchases debt from creditors at a discount. Debt ...
  4. Debtor

    A company or individual who owes money. If the debt is in the ...
  5. Debt Collector

    A company or agency that is in the business of recovering money ...
  6. Net Collections

    A term used in medical accounting to describe the amount of money ...
Related Articles
  1. Personal Finance

    5 Unethical Collection Scams That Consumers Should Be Aware Of

    Here are a few of the ways that scam artists prey on those in debt.
  2. Financial Advisor

    The Risks of Investing in Art and Collectibles

    Investing in art and collectibles has the potential to lead to a big payday, but it's often a difficult road.
  3. Personal Finance

    Inside Secrets of the Debt Collection Business

    Understanding how the debt collection business works will give you a better chance of coming out ahead if you ever have to tangle with a collection agent.
  4. Financial Advisor

    The Advantages of Investing in Art & Collectibles

    Investing in collectibles can be profitable and fun, and can offer tax benefits for some.
  5. Managing Wealth

    Should You Insure Your Collectibles?

    Insuring your valuable collectibles is just as important as insuring the rest of your home's contents.
  6. Financial Advisor

    How Are Collectibles Taxed?

    If you plan to sell collectibles, it's imperative that you know the tax implications.
  7. Personal Finance

    Here's What Debt Collectors Couldn't Do Anymore

    The Consumer Financial Protection Bureau has proposed new regulations designed to offer consumers more protections when dealing with debt collectors.
  8. Taxes

    Understanding Bad Debt

    Bad debt is money a company or lender is owed, but is unable to collect.
  9. Personal Finance

    Dawn Of The Zombie Debt

    Are old debts coming back to haunt you? We'll show you how to keep these zombies from eating you alive.
RELATED FAQS
  1. What do creditors have to report to credit bureaus?

    Protect your credit score by understanding how creditors report information about your debts and payments, which can affect ... Read Answer >>
  2. If a collection agency buys my debt from another agency, does the debt become 'new'?

    Find out what happens when your debt account is sold from one collection agency to another and the impact on your balance ... Read Answer >>
  3. How can a creditor improve its Average Collection Period?

    Read about some of the ways that a business can improve its accounts receivable management practices to shorten its average ... Read Answer >>
  4. What's the difference between a credit rating agency and a credit bureau?

    Learn how to differentiate between credit rating agencies and credit bureaus, two industries that distribute valuable risk ... Read Answer >>
  5. What are the differences between the three national credit bureaus?

    Read about the main differences between Equifax, Experian and TransUnion. Learn why your credit scores and credit reports ... Read Answer >>
  6. What are my rights under the Fair Debt Collection Practices Act (FDCPA)?

    Read about the rights and protections granted to you as a debtor under the Fair Debt Collections Practices Act, and learn ... Read Answer >>
Trading Center