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With more people in debt, collection activity – or the amount of debt being assigned to collectors – is up dramatically, reports ACA International, the Minneapolis-based association of collection agencies. Still, with the economy plodding along, doing the actual work remains a great challenge.
Several industry executives in the past month shared optimism for a turnaround before the end of the year. When it happens, agencies had better be ready for a business boom, they agree. "As the comfort level builds and consumers feel better about their future, their jobs and the value of their homes, agencies will quickly find more people both willing and able to pay their debts," one executive said. "It will be nice to stop having to drain blood from turnips."
This is of course wishful thinking but it's true that the economic doldrums can't last forever. Right? Right!?
The million-dollar question remains: When will the recovery start? The best advice gathered from the industry comes down to this: "hang in there."
Industry leaders, meanwhile, are taking a long-term view of how to improve the business of collections. We take an initial look at that process in our story that begins on page 14.
We also begin a two-part series on page 18 that takes a look at M&A activity, foreign investment and the size of the collection market in Europe.
Next month, watch for our detailed view of daily operations and methods proven to work. A glimpse: one agency in Norway trains employees in its call center in Lithuania to speak dialects of fluent Norwegian.
Upcoming coverage will include our profile of the top three collectors in the business. Tell us why your choice is successful. Is he or she a top motivator among peers? Boast excellent monthly recovery rates? The fewest complaints and no Fair Debt Collection Practices Act compliance issues? Whatever the case, send us a paragraph or two to let us know. Our deadline for nominations is June 5.
Finally, don't forget to plan for the 17th annual Financial Services Collections Conference, Oct. 22 to 24 at the Bellagio Hotel and Casino in Las Vegas. Formerly the Card Collections Conference, the event is expanding to include a variety of other topics that are important to your businesses.
