For collection agencies, it comes as no surprise that third-party debt collection has a huge impact on the economy. With that in mind we are thrilled to share the results of a research survey conducted by Ernst & Young, which demonstrates this impact on the national, state and local level.
Researchers found that on a national scale, third-party debt collection returned $78.5 billion in gross revenue ($67.6 billion net) to the economy in 2016. Over the past three years, this figure has grown significantly from $55.2 billion in 2013 ($44.9 billion net). The GLCCA states of Wisconsin, Minnesota and Illinois are also doing their part, returning $840 million, $2.6 billion and $4.4 billion in gross assets, respectively in 2016. This is up from $521 million, $1.6 billion and $2.6 billion in 2013.
Third-party debt collection also has a significant influence in helping organizations make payroll. In 2016 the industry brought in $12.6 billion in total payroll (nationally). This is up from $12.4 billion in 2013. Statewide, Wisconsin third-party debt collectors brought in $147 million (up from $141), Minnesota contributed $364 million (down just slightly from $365) and Illinois posted $684 million, which is up from $579 million in 2013.
Our industry also does it part to add to the federal, state and local tax base. In 2016 third-party collection agencies and their employees accounted for $852 million in taxes paid at the federal level, and $677 million in state and local taxes. When looking at these contributions by state, Wisconsin collectors paid $9 million federally and $15.6 million on a state or local level. Third-party agencies in Minnesota contributed $27 million federally and $42.4 million in state/local taxes, and Illinois-based agencies provided $48.2 million federally and $75.1 million at the state/local level.
Overall, the results of the Ernst & Young research show the continued importance of third-party debt collection as it relates to the growth of national, state and local economies. We believe this should offer encouragement to our GLCCA members who work hard every day to contribute to this growth.
If you are interested in seeing the full survey results, please click here. If you have any questions about these findings, don’t hesitate to contact us.