A recent survey of the Consumer Debt Collection industry 2013 figures produced some interesting results. If you use a Debt Collection Service, you might be shocked.
Across the United States about 1 billion accounts were sent to debt collection services. These accounts were worth 756 billion in collection for an average claim of $756.
That’s a lot of money. Unfortunately, only about 7 percent of the total was collected. I have written other articles on the causes of this lower collection ratio problem. This article by the American Collectors Association focuses on what the numbers mean to the economy.
If you are interested, you can do much better than average by making a few small changes such as requesting ‘Emergency’ phone numbers on your application. You can find a lot of information on this subject in my blog.
Even this 7 percent collection ratio helps a lot. $479 are returned for every household in the United States. This is the estimated result of the return of lost debt to companies which is reflected in lower prices.
Some States do better, but there are no happy surprises.
The report breaks down figures nationally and by State.
Building up front applicant screening into your business processes costs you very little, but saves you so much in the end. If you haven't already, partner with a full service debt collection and applicant screening company to guide your business to a place of security and prosperity. Contact us to sign up for a free account and get started protecting your business today.
ABOUT EXECUTIVE CREDIT MANAGEMENT, INC.
Executive Credit Management is a full-service Debt Collection and Applicant Screening agency with over 20 years experience located in Central New Jersey. We provide excellent service in the following areas: Employment Screening, Business Screening, and Tenant Screening. Executive Credit Management belongs to a number of Skip Tracing databases and offers services to help locate and confirm the current address of missing debtors. Other services provided are: litigation evaluation on all lawsuit decisions, improvement of the quality of the applicant data, Lawsuit Monitoring, Handling of Debtor Disputes. Executive Credit Management features the best Call Monitoring System in the Debt Collection industry.