Debt Collectors Are Turning Into Debtors
I engage in a lot of dicussion with the folks on the other side of the aisle (Collection Attorneys). During these discussions its often brought up that Collection Agencies are currently struggling to turn a profit. With the recent downturn of our Country’s economic stability people often assume that Collection Agencies are making a killing since there are so many accounts these days that are going unpaid. However, the exact opposite is actually taking place. Although there are more accounts in collections, the average consumer has less money to actually pay off these accounts. If collectors can’t get paid, then they don’t make anything on that account. If they don’t make money, they eventually have to close their doors.
I’m finding that many of my FDCPA settlements are currently going unpaid. I settle the case with XYZ agency and the money never arrives. When I check up on the agency (using my former debt collection tactics) I find that the agency has either closed their doors or has filed Bankruptcy. The economic crunch is hitting everyone; even those that collect debts.
I’m also finding that Collection Agencies are getting more aggressive when collecting debts. I don’t know if the pressure is coming from the top of the organizations or if it is the individual collectors feeling the pressure due to their inability to collect debt like they used to. Regardless, its apparent that these debt collectors know that if they are unable to collect, eventually they will be fired (either as a result of their lack of performance, or because their company closes its doors).
The next time you are getting harassed by a collection agent, tell them that you read the Fairdebthelpers.com blog and it stated that many collection agencies are closing their doors. Tell the collector that they better start treating you with respect. After all, what goes around comes around and if the last few weeks are any indicator, its extremely possible that the debt collector that is currently harassing you will eventually be unemployed and on the receiving end of debt collection calls.
Oh, and by the way, I am not a debt collector attempting to collect a debt.
Jeffrey Hyslip
December 17th, 2008 at 6:33 pm
NCO Cuts 175 Jobs at Canadian Call Center
December 17, 2008
NCO Group laid off around 40 percent of its staff this week at a Canadian office focused on customer relationship management work.
by Patrick Lunsford
insideARM
December 17, 2008
Accounts receivable management and business process outsourcing giant NCO Group laid off around 40 percent of its workforce this week at a call center in British Columbia, Canada.
The BC Government and Service Employees’ Union (BCGEU), a group representing the workers at the call center, said Tuesday that the employees were “technical service representatives” at NCO’s Surrey, B.C. office, in the outskirts of Vancouver.
A spokesperson for NCO confirmed the layoffs and said that the workers were engaged in customer relationship management (CRM) services.
The BCGEU statement noted that it will still represent some 255 workers at the office after the layoffs.
“There is no good time for a layoff announcement to be made, but hearing the week before Christmas that you will be losing your job is especially rough for our members and their families,” said BCGEU President Darryl Walker.
Walker notes that as union members the workers are entitled to and will receive 60 days paid notice, and that should vacancies open or NCO create more positions - their union recall rights mean members will be first in line for job openings.
The BCGEU also said that it was assured NCO had done everything in its power to minimize the job losses. “We appreciate that this company continues to actively seek new contracts that will create more employment opportunities,” Walker said in the statement.
NCO Group is one of the largest ARM firms in the world, employing more than 30,000 people worldwide. The company has offices in 12 locations in Canada. The CRM division of the company accounted for $91.7 million of NCO’s total third quarter 2008 revenue of $381 million.
Reprinted from: http://www.insidearm.com