Ernst & Young Survey Once Again Demonstrates Substantial Value of Third-Party Debt Collection Industry
ACA International released the 2017 Ernst & Young survey which provides an in-depth overview of the economic importance of the third-party debt collection industry on the U.S. and individual state economies.
Based on data from 2016, the report details the industry’s contribution to employment, asset recovery and other fiscal categories. Since 2013, the last year a similar survey was conducted, the amount of debt collected has increased by 42 percent, which translates to a return of $67.6 billion to creditors in 2016.
Key national findings of this landmark study include:
- Recovering Assets: A total of $67.6 billion was recovered on behalf of creditor clients. The collection of consumer debt provides a valuable benefit to American households, as third-party debt collection efforts represent $579 in savings on average per household by keeping the costs of goods and services lower.
- Job Creation: Third-party collection agencies directly employed 129,262 people with a payroll of $4.9 billion. Indirectly, the industry influenced creation of more than 89,000 jobs.
- Paying Taxes: Third-party collection agencies and their employees paid $852 million in federal taxes, and $677 million in state and local taxes. The ancillary impact of the industry generated a total $1.6 billion in federal taxes paid and $1.28 billion in state and local taxes.
- Giving Back: Third-party collection agencies and their employees contributed $17.7 million and volunteered 521,700 hours to charitable community causes.
To review the complete Ernst & Young report, “The Impact of Third-Party Debt Collection on the USNational and State Economies in 2016,” as well as ACA’s other advocacy-related materials, please visit our Industry Reporting website.