|
|
| February 14, 2008 |
|
Dear Reader, Welcome to the February issue of Agency News. We offer this month an analysis of the upcoming collection contract from the U.S. Department of Education, commonly known as ED, the behemoth that has grown to be worth more than $40 billion. Sounds great, but look before you leap into this one suggests Kaulkin Media Consumer Finance Analyst Dimitri Michaud. Recent collection industry news has been a mix of the good, the bad, and the ugly. Let's get the bad over with - on February 12th alone, there were three stories of law or ethics violations, from Virginia to Chicago to Oregon. There was some good news – a successful collector is going to hire some hard working folks in these tough economic days; Van Ru Credit Corp. named a new president; and entrepreneurs are either starting afresh or in the midst of building agencies. The ugly? Well, there was the DBA conference. OK, OK, just kidding. No surprise that debt pricing was a major topic at the show, and prices seem to be going down. Wait a second, that's good news...
Most Popular Recent Collection Agency HeadlinesOregon Collection Lawyer in Hot Water over SuitsChicago Dumps Linebarger, Claiming Ethics Violation Virginia Sues Child Support Collector ACCS Defends 'Sovereign Immunity' Case as Public Citizen Mulls Class Action Suit Collection Agency Adding 220 Jobs in Indianapolis and New Office Executive Change: Van Ru Promotes Daniel Calderon to President Portfolio Pricing Top of Mind as Debt Purchasers Head to Conference Mortgage Collector Growing as Market Troubles Surge WAM Reports Big Numbers in 2007, But Cautions on 2008 $ Holzhauer Forms Medical Debt Buyer $ Florida Collection Agency Hit with $3.4 million FTC Judgment $ Please Note: Articles marked with $ require a Premium Membership on insideARM.com to read (only $49/year).
Industry Analysis for ARM Decision MakersStudent Loan Market Enticing but Competition is Fierce The federal government is increasingly using private collection agencies (PCAs) to rehabilitate and collect delinquent debt. In addition to the Internal Revenue Service's use of PCAs in the collection of unpaid taxes, the Department of Education (ED) has continued to expand its use of PCAs in the collection and rehabilitation of its portfolio of defaulted student loans. Given that ED's portfolio of defaulted student loans stands at over $40 billion, the need for private agency participation in servicing these loans will continue to grow. The student loan collection market itself has seen rapid growth, having increased at an 8 percent to 10 percent rate annually over the past several years, compared with the accounts receivable management industry's compound annual growth rate of 4 percent since 2000. A recent Kaulkin Ginsberg sizing of the student loan collection market put it at $974 million annually. Although the market has grown quickly, it is concentrated among a handful of major players, with 10 companies and their subsidiaries controlling an estimated 75 percent of the sector. (Read the entire article >>>) Please don't hesitate to contact us with your comments and story ideas at editor@insidearm.com or 240.499.3826. Looking for a great job or the perfect employee in the ARM industry? Don't forget that JobsInsideARM.com is the industry's most popular online job board. Employers: if you are looking for qualified candidates for ARM-related jobs, give JobsInsideARM.com a try. With the most traffic of any ARM job board on the Internet, your opening will get great exposure for one low set price ($109 for 60 days). Job Seekers, there's no better place to find employment in the ARM industry. Go to JobsInsideARM.com to start your search today. |
|
Copyright © 2008 Kaulkin Media |