Did you receive a collection notice?

Here are a few tips on what to do next. Don’t get angry. Your account came to us from someone who values your business. However, just as you depend on an income to pay rent, purchase groceries and other necessities, those who extend credit must have payment for their goods and services in order to pay their bills and remain in business.

Instead of being asked to pay cash, you were given credit, and your account remains unpaid. Now it’s time to find a solution.

Contact us. If you believe you don’t owe this bill, let us know.  If you do owe it, let us know when payment can be expected, and if you’re unable to pay in full, tell us why.

Failure to contact us can imply that you’re evading a just debt. Whatever the reason for nonpayment in the past, the matter can’t be resolved if you don’t contact us.

Let us help.  While collecting past due accounts is our business, helping people solve their financial problems in our commitment. People on our staff are experienced in credit and collections and are able to assist you if you let them.

Your account being listed with a collection service could prevent you from obtaining credit elsewhere when you need it. With our help, you could establish or maintain a favorable credit reputation.

You should understand the collection notice is an attempt to collect a debt and any information obtained will be used for that purpose.


The Impact of Third-Party Debt Collection on the National and State Economies

The third-party debt collection industry employs thousands of Americans and influences the employment of thousands more. By recovering tens of billions of dollars in delinquent consumer debt that would otherwise go uncollected, the industry generates important benefits to the US economy.

To develop a more complete picture of the economic importance of the third-party debt collection industry, ACA International (“ACA”) commissioned Ernst & Young to conduct a survey of third­ party debt collection agencies. Survey data collection took place between September and November of 2011 to ACA members and non-member contacts which the ACA provided.

The resulting study, The Impact of Third-Party Debt Collection on the National and State Economies, gives estimates of key metrics that provide an overview of the third-party debt collection industry in the United States for 2010. Key measures of industry size and impact include the following:

  • Agencies recovered approximately $54.9 billion in total debt in 2010, on which they earned $10.3 billion in commissions. Removing commissions from the total debt recovered leaves over $44.6 billion in debt that agencies returned on a commission basis to creditors and the U.S. economy .The five states with the highest total debt collected are Texas ($5.3 billion), New York ($5.3 billion), California ($4.4 billion),Florida ($2.8 billion) and Illinois ($2.7 billion).
  • Early out debt, consisting of receivables that aged 90 days or less, represents 30% of all debt collected; bad debt, which accounts for the remaining 70%, consists of receivables aged 90 days or more.

For entire report: http://www.acainternational.org/files.aspx?p=/images/21594/2011acaeconomicimpactreport.pdf [Read more…]