Times can be tough in the current economy, even for debt collectors.
While San Fernando Valley area collection agencies report an uptick in business from companies seeking payment of overdue bills, they say it's increasingly difficult to collect on outstanding debts.
"Business is not great," said Ron Grossblatt, CEO of Grant and Weber in Calabasas, "If they don't have the money, they can't pay us."
Clint Sallee, CEO of Fidelity Creditor Service Inc., said the Glendale-based firm is working more accounts but that revenue for each has "contracted."
At Account Control Technologies in Canoga Park, president Dale Van Dellen's company collects debt for educational institutions and the U.S. Department of Education, contacting people who have defaulted on their student loans.
The major difference in the current economic atmosphere that Van Dellen sees is that people can't as easily refinance their homes to raise money to pay their debt.
"The average payment is lower," Van Dellen said, "much less than a year ago."
Grossblatt said how there are numerous economic effects at play, including the skyrocketing price of gasoline.
Financial Network Recovery in Simi Valley has a lot of insurance-related businesses among its clients, so is seeing another aspect of high gas prices.
"Truckers can't afford their insurance anymore," said President Larry Bovorvay.
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