December 26, 2012 by Rick B
It may shock you to hear this, but the debt collection industry does not exactly have a sterling reputation. Collecting debt is an intricate art that requires the stroke of many brushes to paint a full and accurate picture.
Similar to any industry that deals with consumers, debt collectors receive their fair share of complaints. While some complaints certainly are for valid reasons, debt collectors are often painted in an unfavorable light just for doing their job, and that is simply a shame.
In honor of this giving season, I’d like to take a moment and reflect on the philanthropy and many positive attributes collections agencies bring to the general public.
$85,200,000—85.2 million dollars is quite the chunk of change. It is also the total amount of money donated to various charities by accounts receivable managements companies in 2011.
Employees of collection agencies and ARM firms also donated 652,000 hours of their time to their favorite charities—that’s nearly 4 ½ hours per employee across the entire industry.
Collection agencies directly employ over 148,000 people, and generate payroll in upwards of $5 billion dollars—dollars that directly stimulate the US economy.
Most accounts are referred to a 3rd party collection agency because they have gone unpaid for several months, and in some circumstances, several years. Unpaid debt is often returned to all of us consumers in the form of higher consumer pricing. Remember, there is no such thing as an unpaid bill—when a debt goes unpaid by one person, the rest of us pay for it later.
In 2011, third party debt collectors recovered over $55 billion dollars on behalf of America’s public, private, and non-profit sectors. Many companies count on this money to keep their doors open and payroll flowing. Without the swift action of third party agencies, this huge chunk of money would go uncollected and have a very negative effect on our economy.
Last, but not least, the work of third party debt collectors has a positive impact on your bottom line. The average American household saves $396/yr due to the efforts and monies collected by third party agencies.
We’ve all heard the horror stories about collection agencies. Unfortunately, it is the bad actors that too often steals the brightest light.
Remember, collection agencies are a business, like any other, where the people you work with start to feel like family. Debt collector is a position with a negative connotation—and the negative connotation does not define the person. I can confidently and honestly say, our company is what it is due to the high character of everyone who is part of our working family.
When I look at the Collection Industry as a whole, I see a glass half full. I encourage everyone to support the honest efforts of reputable collection agencies, just as you would support any other business in your community.
We here at United Credit Service, Inc. hope you had a wonderful time this past week with friends and family and wish you a happy, healthy, and prosperous 2013.