Facing rapidly growing demand across many sectors for effective collection expertise, The Affiliated Group, a leader in Accounts Receivable Management based in Rochester, Minnesota, has named Eric Gapinski as its new Director of Collections, effective immediately. Gapinski brings more than 13 years of knowledge and experience in the industry. He will play an integral role in shaping the strategic direction for the collections division and in supporting the 80-year-old company’s efforts to develop a more consumer-centric business model.
Gapinski’s hiring comes at a propitious time, says Affiliated Group President and CEO, Mark Neeb, IFCCE,CPA,MBA. “The Bureau of Labor Statistics (BLS) anticipates that between now and 2016, the debt collection industry will experience a 23% rate of growth, a much faster rate than the average for all industries,” Neeb notes.
According to the BLS, much of the increased demand for debt collection services will come from doctors’ offices, hospitals and government agencies, including the IRS. “Given Eric’s history and business acumen, we know he will provide the leadership and insight to keep The Affiliated Group competitive and on the leading edge of the collection industry,” said Neeb. “We are fortunate to have him join us during this critical period.”
Demand for Collection Services High in Healthcare, Education, Government and Other Areas
“The lingering impacts of the financial crisis and the ongoing malaise in the economy continue to create significant debt payment delinquencies in the U.S. while driving the need for collection services that are efficient, effective and professionally executed,” says Gapinski. “I am looking forward to helping reshape The Affiliated Group’s operations and making it even more customer-focused and friendly.”
Gapinski cited recent statistics to underscore current collection challenges and increased opportunities for The Affiliated Group:
- As of 2010, 73 million people reported problems paying their medical bills or were paying off medical debt, up from 58 million in 2005. An estimated 44 million people were paying off medical debt in 2010, up from 37 million in 2005. (Source: Press release, The Commonwealth Fund, March 16, 2011.)
- In fiscal year 2010, Professional Collection Agencies (PCAs) under contract with the departments of Education, HHS and Treasury had referrals of $35.9 billion in delinquent federal debt. PCAs collected $777 million in FY 2010.(Source: Department of Treasury Fiscal Year 2010 Report to the Congress—U.S. Government Receivables and Debt Collection Activities of Federal Agencies.)
- The collection industry saved the average American household $396 in 2010. This amount represents dollars households would have spent if businesses were forced to raise prices to cover bad debt. (Source: “The Impact of Third-Party Debt Collection on the National and State Economies,” February 2012.)
- According to Smart Money Magazine, the number of debt collectors has doubled since the early 1990s and the revenue generated by debt collection agencies has tripled to $15 billion. Last year agencies recovered nearly $40 billion in debt, or $133 for every man, woman and child in the U.S.
Eric Gapinksi has 13 years in the professional collection agency industry. Most recently, he was the Site Director of Operations at Pinnacle Financial Group. His past experience includes managing collection agents and growing companies. He earned a Bachelor of Science degree in Secondary Education from St. Cloud State University. He lives currently in Becker-Monticello area but will be relocating to Rochester this summer.
The Affiliated Group offers an array of debt recovery services that are second to none. The company works with a broad base of national clients to create effective cash management strategies that help minimize write-offs, regulate cash flow and increase profitability.