USN Personnel Specialist Complete Practice Test 2026

Direct collections are characterized by the payment being made directly by the debtor to the creditor without any intermediaries involved in the transaction. This means that the creditor or the original entity that is owed the money receives the payment directly, facilitating a more straightforward and efficient collection process. Direct collections can streamline communication, reduce the time taken for payment processing, and minimize additional fees that might arise from using third-party services.

While other options like conducting collections through an agent or managing them via third-party services may be associated with different types of collection practices, they do not represent the essential nature of direct collections, which emphasizes a direct transaction between the debtor and the creditor.