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The Economy

Since the economic downturn began in the U.S. in 2008, the fortunes of ARM companies have largely mirrored the broader business environment. Debt collection agencies are particularly susceptible to high unemployment, inflated consumer bankruptcies, and plummeting housing pricing. Combined with a general tightening of credit standards, the ARM industry is more tied to macroeconomic trends than ever before.

Graphs and file folder with label small business.

Dept. of Education PCA Program Still a Driver of Small Business Growth

The U.S. Department of Education (ED) Private Collection Agency (PCA) program remains an opportunity for small businesses despite recent wrangling over five contractor suspensions in March and a bid process for large (“unrestricted”) contractors still incomplete after two years. Goals have gone up over the last two years, with ED’s prime and subcontracting goals now at 20% and 33%, respectively.

Power Lifter

Encore Capital Group Announces Strong Second Quarter 2015

Yesterday Encore Capital Group (ECPG), an international specialty finance company with operations in eight countries, reported its financial results for the second quarter of 2015 ending June 30, 2015. Second Quarter Highlights Gross collections from the portfolio purchasing and recovery business grew 7% to a record $437 million, compared to $409 million in the same period […]


Encore Partners With U.S. Reps. Peters and Hunter On Bill To Exempt Forgiven Debt From Federal Taxation

Encore Capital Group, Inc. (NASDAQ:ECPG) announced yesterday that it has collaborated with U.S. Reps. Scott Peters (CA-52) and Duncan Hunter (CA-50) to create a bill that would exempt up to $2,500 worth of forgiven personal and household debt from federal taxation. The bill (H.R. 2640) was recently introduced as the “Consumer Debt Forgiveness Tax Relief Act of 2015.” This re-raises the 1099-C debate for the collection industry.


Terrible Jobs Report in March May Signal Shift in the Labor Market, or Simply a Correction

After a run of fantastic job reports for the U.S. economy in late 2014, the latest employment report from the Labor Department cemented what was a lackluster first quarter of 2015. In March, hiring bottomed out, with just 126,000 jobs added last month, and another 69,000 subtracted from previously reported totals in January and February. March was the slowest single month for job growth since 2013.