Idaho debt collectors had $9 million payroll in 2010, industry report says

Posted: 11:33am on Jan 31, 2012; Modified: 12:47pm on Jan 31, 2012

Businesses that collect debts on behalf of clients employed 303 people in Idaho in 2010, for a total payroll of $9 million, according to a national study by the collection industry.

Debt-collection agencies and their employees in Idaho paid $800,000 in state and local taxes and $1 million in federal taxes, according to the study by ACA International advisory firm Ernst and Young.

The third-party collection agencies in Idaho recovered $128.7 million for creditors in 2010, the study found. Across the U.S., $55 billion was recovered.

"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," said Pat Morris, chief executive officer of ACA International.

The debt-collection industry plays a "critical role ... in recovering unpaid consumer debt on behalf of the public, private and nonprofit sectors," said Ben Webb, president of the Idaho Collectors Association.

Collection agencies in Idaho gave $322,000 and 1,900 volunteer hours to charitable causes in 2010, the study said.

Go to www.acainternational.org/impact to see the full survey report.

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