Re: How much commission does a CA make?
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Posted by Paul
(216.127.68.137) on April 19, 2004 at 23:49:20:
In Reply to: How much commission does a CA make? posted by Bob3 on April 19, 2004 at 03:04:11:
Thanks for the enlightening information. Contingency fees are 30-33% for first placements. Older debt, or seconds and third placements as they are called have a 40-50% contingency fee on collections. The most outrageous percentage is for "bought" debt. The cost of the "paper" runs less than 30% of their operation's total costs leaving a contingency fee of an astounding 70+% for agencies like Asset Acceptance, Portfolio Recovery, Midland Credit, Collect America and the other pennies on the dollar debt buyers. Then there are the out of statute agencies like Camco and Whitewing that operate on a nearly 100% contingency basis ; every penny they collect, they keep. The more you look at it, collection agencies operate as welfare agencies supplying make-work jobs for their employees by keeping the bulk of the money they collect. Speaking of welfare, read this article about Camco. Rockford, Illinois gave them direct 7.4 million dollar tax breaks to establish operations there. Direct money from taxpayers. When you think about Welfare, think about collection agencies and their welfare workers. From the Rockford Register Star Newspaper March 25, 2004 "CAMCO arrived in downtown Rockford in October 2002 with much fanfare as it moved its headquarters from Sycamore into the former Conseco and Pioneer Life Insurance Co. building at 303 N. Main St. Community leaders heralded the company's arrival as an opportunity to create good-paying jobs and revitalize downtown after the departure of Conseco. A package to lure CAMCO to Rockford included $7.4 million in tax incentives over a 10-year span." But the government will get some of the money (not much) back with CAMCO's recent $300,000 FTC fine. $7.4 million in tax benefits and then a measley $300,000 fine.
Also from the Rockford Register Star "John Strandin, spokesman for Mayor Doug Scott, said that Rockford hopes CAMCO can address the FTC's complaint and move on. "The city of Rockford is happy that CAMCO moved into a vacant building in downtown Rockford and provided hundreds of jobs," Strandin said. "We don't support the types of activities alleged in the charges filed by the FTC. We hope CAMCO has been able to correct these problems and hope they don't occur in the future."
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