In the U.S debt collection is facing lot of issues due to historical low rates made on credit cards and stiff federal regulations. Law-breaking rates on credit cards has declined since 2009 which is only 2.52% by 2013 middle from 6.58% in 2009.Less law breaking rates means banks are having small debt portfolios.
Portfolio recovery associates are such debt collector who feels the heat but is performing better when compared in the industry. This company shows excellent revenue in past few years with EPS growth rate.
Increased Cash Collections
Portfolio observes impressive growth from 2013 and increased cash collection is the driving factor. They collected $296 million cash from bankruptcy payment of $125.7 million, $80.5 million from legal collection out of customers and $90.2 million from call center collection. The rise in the collections is increasing day by day and more companies are coming forward to collect debt.
They also added their number of staffs for keeping pace with current and purchasing activity of future. By year they increased their staff size for collection debt more efficiently. Due to the growth in their staff and consistency in monthly pay increase the productivity significantly putting less effort on collections. This approach has impact cash collections which indicate that ability of their staff is giving long run to the Portfolio recovery in collecting debt.
The medium they use for contacting the customers are through call and emails for getting payment through call centers of the U.S. The cash collection call center has also become strong after 2013 by marking 23% hike compared to the prior years. They have five call centers with more than 3300 employees across the U.S which works integrally in whole cash collection system. They contribute about 30% of the total revenue of cash collections.
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