The way a debt collection agency makes money is by results. They must have a vested interest in your claim and pursue it carefully and persistently. Collection is an art of the highest degree. The art comes in convincing the debtor that they must pay or face some consequence that has negative consequences to them.
A key part in being successful is learning as much about the debtor as possible without contacting them. This can be done through skip tracing. Skip tracing is the process of locating someone who does not want to be found. This is done through asset searches and credit history reports. There are many methods, but all of them do cost money.
A contingency based collection agency does not make any money until they collect. This is why the title says that they lose money. That is why an agency must be good at what they do in order to stay in business. There is a fine line in the collection world between success and failure.
Make sure that you hire the right agency for your needs and that they can collect. It takes money to make money and this is true in the collection world too. An agency must take a risk in taking your claim, but without the risk they cannot stay in business. I wish you well with your debt collections and hope that you can recover all of the money rightfully owed to you.