Federal Reserve Report Affirms Importance of Debt Collection in the Credit Ecosystem

June 29, 2017 (Sacramento, CA) – The Federal Reserve Bank of New York published a report in May
2017 confirming the vital role of debt collection in the credit-based economy. The report, titled Access
to Credit and Financial Health: Evaluating the Impact of Debt Collection, is based on data analytics
between states with varying degrees of regulation. The analysis found that, “restricting collection
activities leads to a decrease in access to credit across the full spectrum of borrowers and to a
deterioration in indicators of financial health.” A rise in delinquencies and a reduction in credit scores
are among the negative outcomes resulting from restricted collection activities, the effects of which are
“concentrated on individuals with the lowest credit scores.”