New Study Shows Economic Impact of Third-Party Debt Collection in Alaska
JUNEAU - (February 1, 2012) - Third-party debt collection has an important impact on America's and Alaska's economies, according to a new study by ACA International and global advisory firm Ernst and Young (www.acanternational.org/
"These findings reinforce the critical role the third-party debt collection industry plays as a service provider in recovering unpaid consumer debt on behalf of the public, private and non-profit sectors," said Alaska Collectors Association President Mary Fichtner. "Moreover, third-party collectors are actively engaged in Alaska communities as employers, volunteers, philanthropists and taxpayers."
Among the key national findings of this landmark survey about third-party debt collection:
· Recovering Assets: In the U.S., $55 billion was recovered on behalf of creditor clients. Third-party collection agencies based in Alaska recovered $74.2 million.
· Creating Jobs: Third-party collection agencies directly employed 148,272 people with a payroll of $5 billion. Indirectly, they influenced creation of 300,000 jobs with a payroll of $10 billion. Alaska collection agencies directly employed 175 people with a payroll of $6 million. Indirectly, they influenced a total of 293 jobs in Alaska with a payroll of $11 million.
· Paying Taxes: Third-party collection agencies and their employees paid $495 million in federal taxes and $509 million in state and local taxes. The total impact of the industry generated $970 million in federal taxes paid and $1 billion in state and local taxes. Alaska collection agencies and their employees paid $1.1 million in state and local taxes and $600,000 in federal taxes.
· Giving Back: Third-party collection agencies and their employees contributed $85.2 million and volunteered 652,000 hours to charitable community causes. Alaska collection agencies contributed $185,000 and 1,100 volunteer hours to charitable causes.
"Our nation was built on the premise that those who provide credit, goods and services to consumers have the expectation of being repaid," said ACA International CEO Pat Morris. "Recovering these debts helps organizations survive; prevents layoffs; keeps cost down and credit, goods and services available; and reduces the need for tax increases to cover government budget shortfalls."
To review the complete ACA / Ernst and Young report, "Impact of Third-Party Debt Collection on the
National and State Economies," please visit www.acainternational.org/
The Alaska Collectors Association is a State Unit of ACA International, the Association of Credit and Collection Professionals. ACA is the comprehensive, knowledge-based resource for success in the credit and collection industry. Founded in 1939, ACA brings together more than 5,000 members in the United States and abroad, and their employees, including third-party collection agencies, asset buyers, attorneys, creditors and vendor affiliates. ACA establishes a wide variety of products, services and publications. For more information on ACA International, visit www.acainternational.org. Information on consumer rights is available at www.askdoctordebt.org.
Posted: February 4, 2012