The third party collection industry returned $39 billion in 2005 to businesses that extend consumers credit.
The economic effect of third-party collections has been to keep consumer prices lower, thus saving the average American household $351 annually.
The annual savings is the average household equivalent of 19 bags of groceries, 155 gallons of gas, or more than four months of electric bills.
Debt collection reduces the risk of loss for business; permits greater business expansion; makes it possible for healthcare providers to maintain access to care in their communities; and allows for the privilege and convenience of credit as a positive financial tool for American consumers.
Private businesses charged off an estimated $141 billion in bad debt in 2005. The third-party collection industry successfully returned $39.3 billiion to American businesses last year, representing a 22 percent reduction in private sector bad debt.
Third-party collections keep businesses from raising their prices in order to make up for losses.
