Debt collectors also struggling in the economy

[jpljr77]

The Myth of the Debt Collection Boom

Interesting piece on Forbes about debt collectors and how they are not having as easy a time as many think, even with an ever-expanding stock of new work (bad debt):

Reading some recent headlines on the debt collection industry would leave some with the impression that the business is booming. But just as with most businesses in the U.S., debt collectors have been hit with declining margins since 2008 and have been forced to make cuts in their workforce.

According to a recent study conducted by Ernst & Young on behalf of accounts receivable management (ARM) trade group ACA International, third party debt collection agencies employed a little more than 148,000 people in the U.S. in 2010. Similar studies done by PriceWaterhouseCoopers showed there were 155,000 Americans employed by collection agencies in 2007 and 150,000 in 2005.

[tabbycat31]

1. I worked at such an agency

It is not layoffs that are the collector's problems, it's turnover.

I lasted about 6 months on that job, and it was very stressful and grueling work. The micromanagement of a call center (ie having to ask to go to the bathroom and being yelled at for going too much) and abuse that the customers give you are way too much for many to handle. The pay and benefits were not worth the stress.

My reason in my letter of resignation was "the abuse I was taking from customers was affecting my personal life."

[quinnox]

2. the job from hell

I can't imagine being on the phone all day trying collect money from people who are usually having financial problems.

[mikeysnot]

3. Shit, I can't even get paid for work

that I already completed. I spend more times "reminding" my cleints that they are 90 days past due...

Now if I told the client I would do the work 90 days from now, I would be out of business.

[Lint Head]

4. Get the crooks on of the debt collection business and things may change.

Banks and other lenders use debt collection agencies because they don't want to get involved with dirty tactics and strong arm people because they want a nice community PR image. They really don't care what a contractor does to collect a debt as long as they collect it.

It's the Pontius Pilate washing the hands model of finance.

[Bryn]

6. Agreed

Caption One (credit card co.) turned over my account to debt collection agency even though I wasn't late, but due to less amount I paid. Example: the minimum payment was 188.00, but I only had 132.00 so I paid that. I was very surprised how quickly they turned my acct. to collection agency like that! Who knew? I called them and told them (Caption One) that I refused to deal with debt collection agency as I didn't owe them anything, but that I owed Caption One only. Later on they took my account back from agency, reopened my acct. 4 months later!

[wilt the stilt]

5. I have a couple of friends(Brothers)

who own this type of business. I feel for the workers and I think it is a very difficult job. On the other hand the owners are bottom feeders. Kind of like the mafia

[Javaman]

7. Can't collect what people don't have. nt

[jpljr77]

8. I agree 100%. Even if the collector gets someone who legitmately owes the debt

they aren't going to get money that doesn't exist.