InsideARM recently released information from an industry survey they conducted regarding what part of the debt collection industry is more likely to work in cooperation with debt settlement companies.
They survey 649 creditors, collectors, debt buyers and legal recovery firms to ask about their perception or willingness to work with debt settlement companies.
The survey indicated a growing willingness to work in cooperation with debt settlement companies to recover funds but there were some clear differences between the various vertical niches.
Debt collection agencies outnumbered debt buyers 3:1 in their cooperation with debt settlement offers and legal recovery firms 4:1. Ironically, original creditors ranked lowest in the different segments surveyed.
It appears from the results of the survey, as well as the numerous comments provided by respondents, that the concerns about reputational credibility of the industry and the past practices by bad actors (now legislated in a manner designed to strictly mitigate future offenses) has taken a back seat to liquidation performance and concerns around data security, privacy, compliance, and the FDCPA. The top three reasons provided for not working with the debt settlement industry related to these issues while concerns around reputation came in fourth, with only 13% of participants stating reputation as a concern. – Source
For more information on the survey and to download the survey, click here.