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June 2017 Archives

Are Debt Collectors The Unsung Heroes Of The Economy?

Third-party debt collection agencies are not immune from regulation, regardless of how their efforts may feel to consumers. Collection agencies have a reputation for aggressiveness, in large part because their own financial health depends on how efficiently and fully they can collect from those who owe money. But those aggressive tactics may ultimately end up benefiting consumers. That's because lenders that are able to recoup their losses have more money on hand to extend as credit. When lenders lose money to delinquent borrowers, they have less money to extend to anyone, including those with good credit scores.

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