Debt Collection - A $13 Billion Industry in Transition, with Outsourcing Growing at 25 to 30% Annually According to a Report Published by Kaulkin Ginsberg Company

BETHESDA, MD — Debt collection has grown to a $13 billion industry according to The Kaulkin Report(c), a report published by Kaulkin Ginsberg Company and its virtual affiliate, CollectionIndustry.com.

The report identifies that while contingent collections were growing at a rate of 9% between 1998 and 2000, outsourcing of service functions by businesses were growing an annual rate of 25 to 30%.

According to Mike Ginsberg, President of Kaulkin Ginsberg, “the $13 billion debt collection industry is growing not only in revenues, but also in importance to corporate America as a provider of essential outsourced business services such as call centers and accounts receivable management”.

The report also reviews the development of new business lines and the dramatic shift in industry leadership, and points out that 9 of the 10 largest agencies existing in 1996 have changed hands. Ted Smith, a Vice President of ACA International said “Kaulkin Ginsberg has put together a great resource for anyone interested in learning about this market.”

Jack Lavin, CEO of Arrow Financial Services, a leading debt purchasing and accounts receivable management firm, said the Kaulkin Report(c) is “an excellent reference guide to an exciting and fast changing industry”.

This 5th edition of The Kaulkin Report(c) examines the industry’s market size and services, the market outlook and forecast, the major players, and the M&A implications. It shows how the top 10 agencies continue to absorb more of the overall market, with revenues rising from $910 million in 1995 to $2.5 billion in 2000.

Spencer Nilson, publisher of the Nilson Report, a leading expert on payment systems stated, “ Kaulkin Report(c) contains information not available elsewhere and is very well written.”

The report contains charts, graphs, proprietary statistics, and quotes from industry figures, along with insights into many collection industry interests. With 68 pages, this 5th edition of the Kaulkin Report(c) is the most comprehensive information available on the industry.

Other topics covered include:

• The impact of the global financial services consolidation
• The growth of strategic outsourcing partnerships
• The revenue distribution of this $13 billion industry
• The suggestion that tighter bankruptcy laws could make it harder to escape debts
• The possibility that federal regulatory and procurement reforms could ease the way for agencies to compete for government contracts
• The effect of increased debt purchasing and reselling on the industry

About Kaulkin Ginsberg Company and CollectionIndustry.com

Kaulkin Ginsberg Company, founded in 1989, provides advisory services including mergers and acquisitions, corporate finance, partnering and strategic alliances. The firm specializes in designing, developing, facilitating and negotiating effective business arrangements based on a client’s personal and professional goals in a constantly changing marketplace. www.Kaulkin.com.

CollectionIndustry.com is the leading online resource for the credit and collection industry. It serves as the connector for and between collection agencies, credit bureaus, creditors, debt buyers, collection attorneys, industry employers and employees, and vendors to the industry. It is the most popular source for current industry news and information.

CollectionIndustry.com also hosts the Opportunity Exchange – an employment and small business marketplace, dedicated to credit and collection professionals. www.CollectionIndustry.com.