HARRISBURG, Pa., March 14, 2012 /PRNewswire-USNewswire/ -- Third-party debt collection has an important impact on America's and Pennsylvania's economies, according to a new study by ACA International and global advisory firm Ernst and Young (www.acainternational.org/impact) based on 2010 data.
"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 Mid-Atlantic Collectors Association President Harry Strausser III. "Moreover, third-party collectors are actively engaged in Pennsylvania 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 Pennsylvania recovered $2.4 billion.
- Creating Jobs: Third-party collection agencies directly employed 148,272 people with a payroll of $5 billion. Indirectly, they influenced the creation of 300,000 jobs with a payroll of $10 billion. Pennsylvania collection agencies directly employed 6,396 people with a payroll of $208 million. Indirectly, they influenced a total of 13,494 jobs in Pennsylvania with a payroll of $439 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. Pennsylvania collection agencies and their employees paid $21.6 million in state and local taxes and $21 million 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. Pennsylvania collection agencies contributed $1.6 million and 15,200 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/impact.
The Mid-Atlantic Collectors Association is a Unit of ACA International representing Pennsylvania, Delaware, Maryland and Washington D.C. 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.
Contact: Mark Schiffman, PR Director
Tel. (952) 259-2124 or [email protected]
SOURCE ACA International