Debt Collectors - A Consumer's Best Friend?

FOR IMMEDIATE RELEASE

Contact: John Nemo, Public Relations Director

(952) 928-8000, ext. 124, nemo@acainternational.org

Debt Collectors – A Consumer’s New Best Friend?

New study shows collection agencies pumped $40 billion back into the U.S. economy, helped save the

average American household $354 during 2007

MINNEAPOLIS (June 25, 2008) — Imagine a debt collector offering to buy the typical American

family 90 gallons of gasoline or cover several months of their cell phone bills. A new national study

revealed that it’s a reality thanks to the efforts of an oftentimes-misunderstood industry.

“We’re well aware of the negative stereotypes associated with being a debt collector,” said Chris Wunder,

President for the Executive Committee of ACA International, The Association of Credit and Collection

Professionals. “The members of ACA International want the American public to know that we are on

your side and that the vast majority of debt collection agencies work in an ethical, professional and

respectful way to help consumers pay back the debts they legitimately owe. This study is another key step

in helping consumers, policy makers and members of the media understand what we do and the benefits

we provide.”

ACA International, which represents more than 3,500 of the estimated 4,100 debt collection agencies in

the United States, commissioned the study titled “Value of Third-Party Debt Collection to the U.S.

Economy in 2007: Survey and Analysis.” It was conducted by global advisory firm

PricewaterhouseCoopers and based on a national survey of third-party debt collection firms.

Among the key findings:

· Debt Collection agencies returned more than $40 billion to the U.S. economy in 2007,

helping businesses keep costs down and saving the average American household an estimated

$354 as a result.

· The direct and indirect economic impact the industry has on America is massive, with debt

collection agencies supporting an estimated 420,000 jobs with a payroll of $15.9 billion

during 2007.

· Of the $152.5 billion in bad debt that private businesses charged off in 2007, debt collectors

returned more than $40 billion, representing a 20.9 percent reduction in private sector bad

debt. The percentage reduction in business bad debt is calculated as follows: $40.4 billion /

($152.5 billion + $40.4 billion) = 20.9 percent.

“What this report shows is what our members have long known – that debt collection companies are an

indispensible part of keeping the U.S. economy afloat,” Wunder said. “Businesses large and small rely on

ACA member agencies not only to collect unpaid bills, but to help them keep prices lower for all

consumers. Never has that fact been more true or relevant than in today’s difficult economic climate.”

For More Information

To review the complete PricewaterhouseCoopers report, “Value of Third-Party Debt Collection to the

U.S. Economy in 2007: Survey and Analysis,” please visit http://www.acainternational.org/pwc.

ACA International, the Association of Credit and Collection Professionals, is the comprehensive,

knowledge-based resource for success in the credit and collection industry. Founded in 1939,

ACA brings together more than 5,500 members worldwide, including third-party collection

agencies, asset buyers, attorneys, creditors and vendor affiliates. The association establishes

ethical standards, produces a wide variety of products, services and publications, and articulates

the value of the credit and collection industry to businesses, policy makers and consumers. For

more information about ACA International, visit http://www.acainternational.org.