The Hard Truth with Debt Collecting

It’s no secret that the past couple years have showed a slumping economy.  It’s important to think about what else comes along with an economical decline.  The obvious accompaniment is an increase in debt for consumers.  Yes, this increase has shown astronomical numbers in the last couple years.  With such a debt increase one would think that collections agencies are breaking the bank.  Well, that’s not exactly the case.

It’s correct to assume that an increase in debt will also cause an increase in business for collections agencies.  The unfortunate part about this scenario is that unlike most agencies that see a rise in profits when business increases, collections agencies don’t always reap the same benefits.

 

In the past couple years, collections agencies have seen more and more work coming to their door.  The problem is it’s not uncommon for this work to go unpaid.  Collections agencies have had to hire more employees to help regulate the new workload, however some or many of the claims that are coming in are not bringing in the green.

 

Who is to blame?

It’s not necessarily a ‘who’ as it is a ‘what’.  Collections agencies are having a hard time collecting debt.  This difficulty is a major cause of the regulations that the government has in place to protect those that are in debt.  Collections agencies are forced to walk on a thin line while they are attempting to go about their debt collecting business.  It’s safe to say that the rules and regulations are not on the collectors’ side when it comes to debt.

 

Debt collecting is not an easy endeavor and it certainly isn’t the cash cow that many people presume it to be.  The sad truth is, in a struggling economy, it’s every aspect of the economy that struggles-not simply those who owe.