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New Study Shows Third-Party Debt Collection Positively Impacts Louisiana's Economy

"These findings reinforce the critical role the third-party debt collection industry plays as a service provider in recovering unpaid consumer debt on behalf of the public, private and non-profit sectors," said Louisiana Collectors Association President Melissa Lombardi. "Moreover, third-party collectors are actively engaged in Louisiana communities as employers, volunteers, philanthropists and taxpayers."

Among the key national findings of this landmark survey about third-party debt collection:

    --  Recovering Assets: In the U.S., $55 billion was recovered on behalf of
        creditor clients.  Third-party collection agencies based in Louisiana
        recovered $641.9 million.
    --  Creating Jobs:  Third-party collection agencies directly employed
        148,272 people with a payroll of $5 billion.  Indirectly, they
        influenced the creation of 300,000 jobs with a payroll of $10 billion.
        Louisiana collection agencies directly employed 1,457 people with a
        payroll of $55 million.  Indirectly, they influenced a total of 2,676
        jobs in Louisiana with a payroll of $102 million.
    --  Paying Taxes:  Third-party collection agencies and their employees paid
        $495 million in federal taxes and $509 million in state and local taxes.
        The total impact of the industry generated $970 million in federal taxes
        paid and $1 billion in state and local taxes. Louisiana collection
        agencies and their employees paid $5.4 million in state and local taxes
        and $5.6 million in federal taxes.
    --  Giving Back: Third-party collection agencies and their employees
        contributed $85.2 million and volunteered 652,000 hours to charitable
        community causes. Louisiana collection agencies contributed $1.3 million
        and 7,400 volunteer hours to charitable causes.

"Our nation was built on the premise that those who provide credit, goods and services to consumers have the expectation of being repaid," said ACA International CEO Pat Morris. "Recovering these debts helps organizations survive; prevents layoffs; keeps cost down and credit, goods and services available; and reduces the need for tax increases to cover government budget shortfalls."

To review the complete ACA / Ernst and Young report, "Impact of Third-Party Debt Collection on the National and State Economies," please visit www.acainternational.org/impact.