Cavalry Portfolio Services acts as a debt collection agency, working on behalf of creditors such as financial institutions, healthcare providers, and other businesses. They recover outstanding payments on delinquent accounts, acting as an intermediary between the original creditor and the debtor. For example, if a consumer has an overdue credit card balance, the credit card company might enlist Cavalry to recoup the debt.
The involvement of a third-party collection agency can be beneficial for creditors facing challenges in recovering outstanding debts. It allows them to focus on core business operations while leveraging the expertise and resources of specialists in debt recovery. Historically, the practice of debt collection has evolved alongside lending and credit practices, with specialized agencies emerging to address the increasing complexity of financial transactions and regulations. This service aids in maintaining the stability of the financial system by facilitating the flow of capital.
