Collector – August 2019 - 38

BUSINESSOPERATIONS

Opportunity Knocks
Federal debt represents the biggest growth market for accounts receivable
management companies right now.
By Mike Ginsberg

I

n many ways, the federal government
resembles a large business enterprise. It
generates revenue-primarily through
individual, corporate and excise taxes,
fees and penalties, rather than sales. It
also incurs expenses, which come in the
form of labor costs, investments, interest
and transfer payments, and guarantee or
reinsurance claims. Much like a business's
ledger, the government's budget can show
profits (surpluses) or losses (deficits). The
government also lends money to individuals
and businesses through its various
departments and agencies, and, like many
more typical creditors, it may struggle to
collect on its loans or other receivables,
especially when they become delinquent.
As of 2017, the government retained over
$200 billion in tax receivables and more
than $1.5 trillion in non-tax receivables.
Although much of the accounts receivable

38

management (ARM) industry primarily
follows the U.S. Department of Education
(DOE) debt collection procurement
developments, there were hundreds of
other contracts-many restricted to small
businesses-awarded for ARM services.
The total number of government
delinquencies and allowances for
uncollectible amounts hovered between
$115 billion and $140 billion annually from
2000 until 2007, before spiking to nearly
$340 billion by 2013. This growth was
primarily driven by the rapid expansion of
DOE delinquencies, a trend that has since
continued after a fall in 2014 due to simple
modifications by the U.S. Department of the
Treasury in its calculation methodology.
In addition to federal student loan debt,
there are other government segments
with considerable delinquency portfolios.
Specifically, the Internal Revenue Service

Learn More
Listen to Mike Ginsberg,
president and CEO of Kaulkin
Ginsberg, and Randy Kamm,
founder and principal of
Collection Quotient Consulting,
discuss working with the
federal government to secure
debt collection contracts on a
2019 episode of the ACA Cast
podcast. You can find it here:
www.acainternational.org/
acacast.

ACAINTERNATIONAL.ORG


https://www.acainternational.org/acacast https://www.acainternational.org/acacast http://www.ACAINTERNATIONAL.ORG

Collector – August 2019

Table of Contents for the Digital Edition of Collector – August 2019

President’s Page
Industry News
Best Practices
FYI
Collection Tips
How a background in making people laugh has helped Roger Weiss, ACA’s new president, educate and engage an industry.
No Good Option
“You’ve got to be a compliance cheerleader for the organization, and that takes a lot of energy.”
Protecting Health Care Data
Calendar
Honor Roll
Education Spotlight
ACA SearchPoint
Ad Index
Membership
Last Word
Collector – August 2019 - Cover1
Collector – August 2019 - Cover2
Collector – August 2019 - 1
Collector – August 2019 - 2
Collector – August 2019 - 3
Collector – August 2019 - 4
Collector – August 2019 - President’s Page
Collector – August 2019 - Industry News
Collector – August 2019 - 7
Collector – August 2019 - 8
Collector – August 2019 - 9
Collector – August 2019 - Best Practices
Collector – August 2019 - 11
Collector – August 2019 - FYI
Collector – August 2019 - 13
Collector – August 2019 - Collection Tips
Collector – August 2019 - 15
Collector – August 2019 - How a background in making people laugh has helped Roger Weiss, ACA’s new president, educate and engage an industry.
Collector – August 2019 - 17
Collector – August 2019 - 18
Collector – August 2019 - 19
Collector – August 2019 - 20
Collector – August 2019 - 21
Collector – August 2019 - 22
Collector – August 2019 - 23
Collector – August 2019 - No Good Option
Collector – August 2019 - 25
Collector – August 2019 - 26
Collector – August 2019 - “You’ve got to be a compliance cheerleader for the organization, and that takes a lot of energy.”
Collector – August 2019 - 28
Collector – August 2019 - 29
Collector – August 2019 - Protecting Health Care Data
Collector – August 2019 - 31
Collector – August 2019 - 32
Collector – August 2019 - 33
Collector – August 2019 - Calendar
Collector – August 2019 - Honor Roll
Collector – August 2019 - Education Spotlight
Collector – August 2019 - 37
Collector – August 2019 - 38
Collector – August 2019 - 39
Collector – August 2019 - 40
Collector – August 2019 - 41
Collector – August 2019 - 42
Collector – August 2019 - 43
Collector – August 2019 - 44
Collector – August 2019 - 45
Collector – August 2019 - 46
Collector – August 2019 - 47
Collector – August 2019 - ACA SearchPoint
Collector – August 2019 - Ad Index
Collector – August 2019 - Membership
Collector – August 2019 - 51
Collector – August 2019 - Last Word
Collector – August 2019 - Cover3
Collector – August 2019 - Cover4
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