A debt collection agency is correctly described as an entity that attempts to collect debts on behalf of another, usually for a fee based on the amount owed, which makes the statement true.
A debt collection agency is an entity that specializes in collecting debts owed by individuals or businesses on behalf of a creditor, typically for a fee or percentage of the amount collected. This is in contrast to debt bondage, which is a system where the person who owes money works off their debt to the creditor. While the debt collector's role is to pursue the debtor to repay what is owed, debt bondage involves a creditor-debtor relationship where repayment is through labor. The statement in the question is true: a debt collection agency does indeed attempt to collect debts on behalf of someone else, often for a percentage of the collected amount.