Debt collectors also do good
Feb 02, 2012 Mike Garretson
According to a recent study from ACA International and global advisory firm Ernst and Young, third-party debt collection provides a variety of benefits to the American people and the economy. What researchers found was that not only does help from collections keep the costs of goods and services down, but agencies also function as j0b creators, philanthropists and honorable tax payers. Specifically, a net $44.6 billion was recovered this year by collection agencies on behalf of creditor clients. This resulted in an average $396 in savings per U.S. household due to deflated costs of goods and services. In terms of job creation, third-party agencies currently directly employ nearly 150,000 people on a $5 billion payroll. Collection firms have also contributed more than $85 million and volunteered more than 650,000 hours to charitable causes. "These findings reinforce the critical role the third-party debt collection industry plays as a service provider in recovering unpaid consumer debt on behalf of the public, private and non-profit sectors," said ACA International CEO Pat Morris. This information is important to note, considering third-party collectors' generally negative reputation. The Huffington Post reports that between January 1 and December 15 of last year, there were more than 11,000 lawsuits citing violations of the Fair Debt Collection Practices Act.