Debt Collection Puts On A Suit
What has captured Wall
Street's attention is the mountain of debt that Americans keep piling
up. In the past five years, consumer loans have jumped 25%, to a total
of $2.1 trillion. The bankruptcy reform that took effect on Oct. 17
promises more business for collection agencies because the new law makes
it much harder for many people to dump their debts by going to court.
"It won't be as easy to absolve your debts with one stroke of a judge's
pen," says James O'Brien, a financial services analyst at Brean Murray &
Most recent comments
Review: People are quick to judge debt collectors. They think all we do is harass people. The truth is we are the ones who are harassed. Debt collectors have to go by a strict set of rules when making phone calls, but the debotrs are the ones who use the vulgar and obscene language. They act like we are the ones who forced them to overspend and treat us harshly for asking them to Ppay back the money they borrowed. They think, "How dare these people call me to remind me that I owe money."
Date reviewed: Oct 11, 2006 9:05 PM
Review: Give me a break. Buying defaulted loans for less then a penny on the dollar and then harassing the people that owe the money is not a legitimate business. These people are crooks and that couldn't tell someone the truth if their life depended on it. Bullying people into paying a debt that these companies had no part of is ridiculous and their only true expense is labor. Profit margins are great 500-1000% over cost but government should and will put these businesses in their place.
Date reviewed: Apr 15, 2006 12:06 AM
Nickname: BG&B 8002840100 x 1242
Review: In this global economy, bigger isn't better. What it comes down to isn't the lowest rates. It is about results! People, debt is turning into a bidding war from Fortune 50 to mom and pops. Time is money, so it would be wisest to pass your past due to a niche size firm such as Baker Govern and Baker, which has a collection ratio of 60%-85%--rather than Gluton sized firms mentioned above that do not value your business with collection ratios of 1-10%. You do the math.
Date reviewed: Jan 13, 2006 6:30 PM
Review: The debt collection industry is not only going corporate but also global. As the world flattens, companies such as Global Recovery know no physical borders when it comes to international and worldwide debt collections.
Date reviewed: Nov 17, 2005 9:19 AM
Review: Nice but a little on the lame side. This was not the in-depth BW article I would expect. You should name names, talk about the companies like Encore and Asset Acceptance who are also doing well, talk about the software like Intelligent Results, Narex, and American Logistics, as well as other trends in the industry.
Date reviewed: Nov 4, 2005 8:25 PM
Nickname: Tony L
Review: It is about time that collections agencies got a good rap for the job we do. We are all not thugs or goons. This business is now about courtesy and liquidation. It has become much more scientific over the last 10 plus years.
Date reviewed: Nov 4, 2005 6:22 PM
Review: How did you leave out NCO Group? They are the largest industry player in accounts receivable management and deb collections.
Date reviewed: Nov 4, 2005 5:45 PM
Review: The "corporate-ization" of the collection industry is a welcome change. Not only does the sophistication improve performance, but it brings in a new level of accountability and will help us all identify the "black hats" that still use abusive and blatantly illegal tactics. We deal with collections companies on a daily basis as we help consumers get back on their feet. The difference between a rougue outfit and a professional one is substantial and encouraging.
Date reviewed: Nov 4, 2005 5:41 PM
Review: Many new and larger agencies are offering additional services other than just debt collection, such as letter services and accounts receivable outsourcing. They want to be a creditor's one-stop shop for all those payment issues, thus making more money.
Date reviewed: Nov 4, 2005 12:35 PM
The views and opinions expressed in these comments do not necessarily reflect the views or opinions of BusinessWeek or the McGraw-Hill Companies.
Other Debt Collection/Debt Collector News Media Articles
Cease and Desist Letter
Sue Debt Collector
Your Right to Validation of Debts to Collection Agencies
Dealing With Debt Collections
Dealing With Debt Collectors
Get Debt Collectors Out of Your Life
Federal Trade Commission Opinion Letter on Validation
Federal Trade Commission Publications
Statute of Limitations
Fair Debt Collection Practices Act
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