Asset Recovery Associates is a debt collection agency, which is a business that focuses on collecting debt that has not been paid for an extended period of time. Asset Recovery Associates will contact debtors and attempt to make payment arrangements so that the debtor can fulfill his or her responsibility of paying their debt.
Debt collection agencies are businesses that enable lenders to recoup part or all of their outstanding loans. This capability provides lenders with the needed financial liquidity to continue issuing loans to credit-worthy individuals.
When lenders are able to collect payment on loans they have extended, they maintain their capital and have the flexibility to continue providing loans to other entities. Debt collection agencies are an important factor in helping lenders to collect these payments. If debt collection agencies ceased to exist, lenders would lose this flexibility and would have to stop lending to others because they would have negative rates of return.
While debt collection agencies are often viewed unfavorably, they provide an important service to the business economy. When outstanding loans are paid, the economy grows and the financial industry remains balanced and functioning.