Third-party debt collection has an important impact on America’s national, state and local economies, according to a new study by ACA International and global advisory firm Ernst and Young based on 2010 data.

“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. “Moreover, third-party collectors are actively engaged in their local communities as employers, volunteers, philanthropists and taxpayers.”

Key national findings of this landmark survey include:

  • Recovering Assets: A total of $55 billion was recovered on behalf of creditor clients. The collection of consumer debt also provides a valuable benefit to American households.  Based on a net of $44.6 billion returned to clients, third-party debt collection efforts represent $396 in savings on average per household by keeping the costs of goods and services lower.
  • Job Creation:  Third-party collection agencies directly employed 148,272 people with a payroll of $5 billion.  Indirectly, the industry influenced creation of more than 300,000 jobs with a payroll of $10 billion.
  • Paying Taxes:  Third-party collection agencies and their employees paid $495 million in federal taxes, and $509 million in state and local taxes. The ancillary impact of the industry generated a total $970 million in federal taxes paid and $1 billion in state and local taxes.
  • Giving Back: Third-party collection agencies and their employees contributed $85.2 million and volunteered 652,000 hours to charitable community causes.

“Our nation was built on the premise that those who provide credit, goods and services to consumers have the expectation of being repaid,” said ACA International President Mark Neeb. “Recovering these debts helps organizations survive; prevents layoffs; keeps cost down and credit, goods and services available; and reduces the need for tax increases to cover government budget shortfalls.”

To review the complete ACA / Ernst and Young report, “The Impact of Third-Party Debt Collection to the National and State Economies,” please visit www.acainternational.org/impact.

ACA International is the comprehensive, knowledge-based resource for success in the credit and collection industry.  Founded in 1939, ACA brings together more than 5,000 members in the United States and abroad, and their employees, including third-party collection agencies, asset buyers, attorneys, creditors and vendor affiliates.  ACA establishes a wide variety of products, services and publications.  For more information on ACA International, visit www.acainternational.org.  Information on consumer rights is available at www.askdoctordebt.org.


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