News & Resources

Detractors taking away from debt-collecting benefits

Apr 04, 2012 Mike Garretson

The overwhelming perception of American debt collectors in the media recently is not positive. The reality, however, is that debt collectors are simply doing their job and their efforts result in major gains for the economy and consumers alike according to some experts.  InsideARM explained that a major business publication's recently published piece bashing the debt collection industry was simply an outrageous one-sided argument that has been adopted by consumers nationwide. Huddleston and Moore detailed that by recovering outstanding consumer debts, debt recovery companies keep businesses afloat by providing them with money owed, which in turn allows them to pay employees, overhead charges and prevent having to lay off workers. The source also explained that the more funds recovered, the less of a chance the government will need to impose tax increases to cover budget shortfalls. According to 2010 Ernst and Young data, the debt recovery sector reclaimed $55 billion for American companies, $2.8 billion of which was recovered in Florida alone. Ernst and Young also said that debt agencies create thousands of jobs each year, contribute a large proportion of federal, state and local tax dollars and donate both time and money to charitable organizations annually.