Debt-Collection Industry Sees Fast Growth, Furious Debate

By Pamela Yip, Dallas Morning News

Thomas Backal calls his line of work the “ugly toe” on the big foot of commerce ? “something that nobody wants to talk about.”

His 3-year-old firm, which he says could reach $3 million in revenue this year, has found a niche in the fast-growing but still highly decentralized industry. There are about 6,500 “accounts receivable management” firms nationwide, including 1,100 operating in Texas and more than 100 in Dallas-Fort Worth.

Despite the industry’s shaky public image, Mr. Backal and his competitors make no apologies for how they earn a living.

Indeed, they see themselves as serving an important role in the economy and say if everyone would live up to their obligations, there wouldn’t be any need for debt collectors, or any complaints about them.

“We keep some companies in business,” said Mr. Backal, who started his company in 2002 out of his home. “Without the creditor, the economy folds. We have to protect the creditor.”

But consumer advocates and Americans who’ve alleged abusive behavior by debt collectors don’t buy the savior role. They say the “ugly toe” of debt collection tramples their rights and bullies some people into paying money they don’t owe.

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