Despite the Still-Weakened Economy, Debt Collector comes Out on Top
While millions of Americans must grapple in this difficult and topsy-turvy economy, some businesses continue to thrive. In fact, Portfolio Recovery Associates, Inc., a company that purchases, collects, and manages consumer debt, are reporting record-breaking profits.
Portfolio Recovery Associates, like other debt collectors, makes money by purchasing consumer debts from creditors, banks and other financial institutions. As defaulted debt or late pay debt increases, buyers and debt collectors like Portfolio Recovery Associates see their revenues rise as well. From 2009 to 2010, Portfolio Recovery Associates experienced increases in net income of 66% from $12.4 million to $20.6 million. At the end of their fourth quarter of 2010, Portfolio Recovery Associates’ total revenue rose 38% from 2009 for a record $100.8 million.
Isn’t it ironic if not more than a little bit aggravating that the success of debt collectors, like Portfolio Recovery Associates, has a banner year while most Americans struggle with loss of income, jobs and being choked by debt? Debt collection and debt buying are not on recession proof; they are recession successful. As Americans fight to pay off accumulated debt, collection agencies flourish.
Of course, someone needs to do the collecting, it is just that when collectors deal with so much business in response to market conditions, it makes one wonder if the abusive behaviors consumers complain about will rise as well and/or if all the FDCPA protections are being complied with . The next time you receive an aggravating or uncivil collection call, remember that you have rights, and you don’t have to tolerate abuse.