Definition - What does Collection Account mean?
A collection account is a delinquent account that is past due on payments and that has been removed from the normal category and placed in the collections department. It recognizes the fact that the debt may not be collectible and may have to be written off altogether after normal collection methods have failed.
Justipedia explains Collection Account
If an account falls into a collection account category, the company has to follow laws that relate to how they are able to attempt to collect the debt. For example, companies are not allowed to call customers after 9 p.m. when they are trying to make repayment terms.