For an industry that is unpopular among lawmakers and card associations, the collections industry seems vital to the U.S. economy, putting more money into the wallets of consumers. With 77 million Americans having debt in collections, it is no wonder that the billion dollar industry has some affect on the economy. But what does this mean for collection agencies? Will this have a positive affect on the embattled industry?
The Stats Don’t Lie – Collection Agencies are Vital
As mentioned above, 77 million Americans have some form of debt in collections. That equates to roughly 35% of all American consumers. While debt can be troubling for consumers and risky for collection agencies, the industry recovered $55 billion in debt in 2013. $10 billion of that came from commissions and fees, ultimately returning around $45 billion to creditors. This, in turn, saved the average American household approximately $389 dollars that year.
With the industry predicted to grow considerably through 2016, the upside from collection agencies will rise as well. Will this be enough to finally lift some of the negative connotations that accompany the industry?
Banks Against Collection Agency Merchants
Recently, collection agencies have become increasingly more high risk in the eyes of banks and lawmakers. With federal agencies such as the Consumer Financial Protection Bureau looking to limit the debt collection ability of these merchants, banks have been resistant when it comes to providing them services like credit card processing.
Despite the high risk nature of the industry, there are other banks that are eager to work with debt collectors, and see their role in shaping the U.S. economy as vital. While the industry will be considered high risk for the foreseeable future, options still exist for business owners looking for payment processing solutions.
Debt Collection Merchant Accounts
Instabill is partnered with a wide range of acquiring banks, both domestic and offshore, to help high risk merchants find the payment processing solutions they need. For collection agencies, we can provide completely customizable processing solutions—simply fill out the free merchant account application to get started. Once you’re approved, a dedicated merchant account manager will begin working to match you with an acquiring bank eager to do business with you.
Getting started is easy, and only takes a few minutes. Get in touch with a live representative today to find your new payment processing solution.