<PAGE>


=================================================================
                SECURITIES AND EXCHANGE COMMISSION
                    Washington, D.C. 20549
                           FORM 10-K
                    
  X   ANNUAL REPORT PURSUANT TO SECTION 13 or 15 (d) OF THE
 ---  SECURITIES EXCHANGE ACT OF 1934 [FEE REQUIRED]

For the fiscal year ended December 31, 1995

OR
    TRANSITION REPORT PURSUANT TO SECTION 13 OR 15 (d) OF THE 
--- SECURITIES EXCHANGE ACT OF 1934 [NO FEE REQUIRED]
For the transition period from ___________to____________                 
                 COMMISSION FILE NUMBER 0-14309

                 PAYCO AMERICAN CORPORATION                 
     (Exact name of registrant as specified in its charter)        
                         39-1133219
           (I.R.S Employer Identification No.)     

                        WISCONSIN               
 (State or other jurisdiction of incorporation or organization)

  180 NORTH EXECUTIVE DRIVE, BROOKFIELD, WISCONSIN     53005   
    (Address of principal executive offices)        (Zip Code)

                      (414)784-9035
     (Registrant's telephone number, including area code)          
Securities registered pursuant to Section 12(b) of the Act:

                             Name of each exchange on which
    Title of each class               registered                 
   --------------------      ------------------------------
        NONE                          NONE
Securities registered pursuant to Section 12(g) of the Act:
                  COMMON STOCK, $.10 PAR VALUE
                  ----------------------------                  
                       (Title of Class)

Indicate by check mark whether the registrant (1) has filed all reports
required to be filed by Section 13 or 15(d) of the Securities Exchange Act of
1934 during the preceding 12 months (or for such shorter periods that the
registrant was required to file such reports), and (2) has been subject to
such filing requirements for the past 90 days.   Yes X   No  
                           ---     ----

Indicate by check mark if disclosure of delinquent filers pursuant to Item 405
of Regulation S-K is not contained herein, and will not be contained, to the
best of registrant's knowledge, in definite proxy or information statements
incorporated by reference in Part III of this Form 10-K or any amendment to
this Form 10-K.  X
                ----
                    (Cover page 1 of 2 pages)



<PAGE>
The aggregate market value of voting stock of the Registrant held by
nonaffiliates was $59,116,681 as of February 29, 1996.

The number of shares outstanding of each of the Registrant's classes
of common stock as of February 29, 1996 was 10,155,085 shares of
$.10 par value common stock.
=================================================================

                                       
               DOCUMENTS INCORPORATED BY REFERENCE

                                               Part of Form 10-K               
                                             Into Which Portions
Document                                       of Documents are 
                                                   Incorporated
--------------------------------------------   -------------------
Payco American Corporation Annual Report to
Shareholders for the Fiscal Year Ended 
December 31, 1995                               Part II

Definitive Proxy Statement for the 1995
Annual Meeting of Shareholders to be Filed
with Securities and Exchange Commission
within 120 days of December 31, 1995            Part III

Registration Statement on Form S-1
Reg. No. 2-34767                                Part IV

Form 10-K filed for fiscal year ended
December 31, 1979                               Part IV

Form 10-K filed for fiscal year ended
December 31, 1983                               Part IV

Form 10-K filed for fiscal year ended
December 31, 1985                               Part IV

Form 10-K filed for fiscal year ended
December 31, 1986                               Part IV

Definitive Proxy Statement for the
1989 Annual Meeting of Stockholders             Part IV

Definitive Proxy Statement for the
1992 Annual Meeting of Stockholders             Part IV

Definitive Proxy Statement for the
1993 Annual Meeting of Stockholders             Part IV
<PAGE>
                        PAYCO AMERICAN CORPORATION
                     1995 FORM 10-K TABLE OF CONTENTS


PART I

Item 1.   Business

Item 2.   Properties

Item 3.   Legal Proceedings

Item 4.   Submission of Matters to a vote of Security Holders

PART II

Item 5.   Market For the Registrant's Common Equity and Related
          Stockholder Matters

Item 6.   Selected Financial Data

Item 7.   Management's Discussion and Analysis of Financial
          Condition and Results of Operations

Item 8.   Financial Statements and Supplementary Data

Item 9.   Changes in and Disagreements with Accountants on
          Accounting and Financial Disclosure

PART III

Item 10.  Directors and Executive Officers of the Registrant

Item 11.  Executive Compensation

Item 12.  Security Ownership of Certain Beneficial Owners and Management

Item 13.  Certain Relationships and Related Transactions

Item 14.  Exhibits, Financial Statement Schedules and Reports on
          Form 8-K

Signatures

<PAGE>
PART I

ITEM 1   DESCRIPTION OF BUSINESS

The Registrant, Payco American Corporation, was incorporated August 7, 1969 as
a Delaware Corporation and was reincorporated in Wisconsin on June 28, 1993. 
The Registrant and its subsidiaries (hereafter referred to as the "Company")
are engaged in the accounts receivable management and collection business. 
The Company is regulated by the Fair Debt Collection Practice Act and the
Telephone Consumer Protection Act which are enforced by the Federal Trade
Commission, and by various state regulatory commissions.  Through its network
of 43 offices across the United States, and Puerto Rico, the Company provides
a full range of outsource services which includes the following: consumer debt
collection services;  commercial (business to business) debt collection, pre-
collection programs, health care accounts receivable management, student loan
billing, contract management services in which Company personnel work on-site
at a client's location to render expertise in various accounts receivable
areas, from billing to collection, and teleservicing.  Teleservicing refers to
outbound and inbound calling programs to perform sales, customer retention
programs, market research, and customer service.  The industries the Company
services include credit cards, education, government, health care, retail,
manufacturing, telecommunications, utilities, banks, freight/transportation,
political, print media, real estate and insurance.  In addition, as part of
its acquisition program, the Company has purchased, at a discount, a total of
63 portfolios of accounts receivable of which 9 portfolios were purchased in
1995.  The Company is also majority owner of joint ventures in Mexico City,
Mexico and Tokyo, Japan that provide receivable management services.

The Company does business under several names, trade names or product trade
styles which are as follows:

          Payco American Corporation, PAYCO
          National Account Systems, NAS
          Payco-General American Credits
          University Accounting Service, UAS
          National Collex
          National Business Division
          Creditors Protective Association
          IMC Credit Services
          IMPACT
          FM Services Corporation
          FM Services of Arizona
          Missouri Medical Collection Inc.
          Hospital & Physician Services
          Herring Financial Services, Inc.
          Central Patient Billing Inc.
          Asset Recovery and Management Corp.
          Jennifer Loomis & Associates Inc., JLA
          CircPlus, PayPlus
          Medical Accounting Services, MAS
          CheckBack
          Select, CVS
          Pay Tech, Inc.
          Federal Collection Bureau, S.A. DE C.V.
          Professional Recoveries Inc.
          Furst and Furst (F&F)
          Continental Credit Adjustors (CCA)
          Grable, Greiner & Wolff (GGW)
          Qualink, Inc.

The Company maintains offices in the following metropolitan 
     areas:

          Phoenix and Tucson, Arizona
          Los Angeles and Pleasanton, California
          Denver, Colorado
          Miami, Orlando, Fort Myers, Jacksonville 
            and Lakeland, Florida
          Atlanta, Georgia
<PAGE>
          Chicago, Illinois
          Indianapolis, Indiana
          Augusta, Maine
          Baltimore, Maryland
          Boston, Massachusetts
          Detroit, Michigan
          Minneapolis, Minnesota
          Springfield, Missouri
          Las Vegas, Nevada
          Edison and Rochelle New Jersey
          Yonkers, New York
          Cincinnati, Cleveland, and Columbus, Ohio
          Oklahoma City, Oklahoma
          Portland, Oregon
          Philadelphia and Pittsburgh, Pennsylvania
          Dallas and Houston, Texas
          Richmond, Virginia
          Seattle, Washington
          Brookfield, Wisconsin
          Washington DC

          Mexico City, Mexico
          San Juan, Puerto Rico
          Tokyo, Japan
          
          

The volume of accounts received by the Company for collection during the year
ended December 31, 1995 was approximately $4.0 billion.  Accounts received for
collection in 1994 totalled approximately $3.2 billion.

The Company receives accounts from a wide range of clients including the
federal government, student loan guarantors, hospitals, universities,
utilities, oil companies and retail and bank credit card providers.  American
Express Co., contributed approximately 10% of the Company's operating revenue
in 1993.  No single client contributed 10% or more of the Company's operating
revenue in 1994 or 1995.

Collections on the accounts received are made through solicitation of payment
through the mail and more importantly through direct telephone contact with
consumers.  All accounts received for collection are assigned a work standard,
which is based on various criteria, including, contractual agreement to work
accounts in a certain manner, dollar balances of the account, age of the
account, etc.  To aid the Company in monitoring these work standards as well
as to increase collector productivity and client service, the Company
developed the Payco Automated Collection System (PACS [registered trade-
mark]).  PACS [registered trademark] is a computer- based collection
system that substantially automates the collection process. The Company
began in 1994 the purchase and customization of its "World-class
Integrated Network" (WIN). This new technologically advanced accounts
receivable management system is expected to completely replace PACS [reg-
istered trademark] in all existing location by the end of 1997.  As of
December 31, 1995, WIN has been installed at ten of the Company's locations.
Assuming current system configurations and conversion of all collection
operations, the Company's overall investment in WIN is expected to be
between $19 and  $21 million.  The Company estimates that by July 1, 1996
approximately 55.0% of the contingency collection business will be on WIN.
In 1994 the Company began to upgrade its automated student loan billing
system.  A total investment of approximately $4.0 million is expected to be
required to accomplish this project.  The Company will begin the test phase
of the project during the third quarter of 1996.  As of December 31, 1995,
$1.9 million has been spent on the student loan billing system project.
<PAGE>
The Company devotes significant and continuous efforts, through training of
personnel and monitoring of compliance with the Fair Debt Collection Practices
Act in order to provide ethical, innovative, high quality accounts receivable
management services which meet client needs and comply with the law.  In
addition to traditional  collection services, the Company provides service in
the area of student loan billing, letter program, hospital billing, including
interstate Medicaid billing, telemarketing, management and training seminars
and in-house projects and also provides temporary employees to the health care
market.  The Company also engages in the purchase of discounted accounts
receivable portfolios through its subsidiary Asset Recovery & Management Corp. 
As of December 31, 1995 the Company had purchased 63 portfolios at a total
cost of approximately $ 61.3 million.  The Company has continued to purse new
markets for purchasing accounts receivable portfolios.   

The Company and its subsidiaries employed 3,098 full-time employees and 484
part-time employees as of December 31, 1995.  Of such employees, 236 were
engaged in administration and 3,346 in sales, collection and accounts
receivable management services.

The Company is among the largest firms in the accounts receivable management
industry.  Intense competition is provided by numerous local, regional and
several national agencies and it is the policy of most large businesses to
utilize the services of several agencies as well as to make their own
collection efforts.




ITEM 2  PROPERTIES

All of the offices listed in Item 1 above are in leased space totaling
approximately 454,000 square feet as of December 31, 1995.  The leases for
such offices expire between March 14, 1996 and September 30, 2007 and provide
for aggregate annual rentals for 1995 of approximately $5.8 million.  The
Company leases its headquarters facility of approximately 66,000 square feet
for a term of 20 years ending March 31, 2000.  Annual rentals under this lease
for 1995 were $745,000 which may escalate at a rate not to exceed 5% annually. 
In addition, the Company leases a modern data processing facility of
approximately 37,000 square feet which houses the Company's computer
operations.  Annual rentals under this lease for 1994 were $281,000, which may
escalate at a rate not to exceed 5% annually.  The Company considers the
office space and other facilities leased by it to be modern and adequate for
the conduct of its business.  The Company also owns furniture, computer
equipment, telephone equipment,office equipment and leases various types of
office equipment which are considered adequate for the conduct of its
business.



 
ITEM 3  LEGAL PROCEEDINGS

The Company is a defendant in various legal proceedings involving claims for
damages which constitute ordinary routine litigation incidental to its
business. The Company has provided  for the estimated defense costs and
liability associated with pending litigation  through charges to operations.

On March 8, 1995 the Company reached a settlement in its litigation with the
Federal Trade Commission (FTC), which had been pending in federal court in
Wisconsin.  In a complaint filed in August, 1993, the FTC alleged that the
Company had violated the Federal Fair Debt Collection Practices Act.  The
Company vigorously defended the case, and asserted that any violations of the
Act were contrary to the policy and practice of the Company.  The case was
resolved with a Consent Decree, in which the Company did not admit any
liability.  The Consent Decree further provides that the Company shall take
additional steps to ensure compliance with the Act, and pay a penalty of
$500,000.  The Company had previously established a reserve adequate to cover
the cost of the Consent Decree.  The Company further believes that compliance
with provisions of the Consent Decree will not materially effect its financial
condition or ongoing operations. 
<PAGE>
ITEM 4 SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS

        There were no matters submitted to a vote of security holders during
the fourth quarter of the fiscal year ended December 31, 1995.

                          PART II
                          -------

ITEM 5  MARKET FOR THE REGISTRANT'S COMMON STOCK AND RELATED     
        SECURITY HOLDER MATTERS
      
The information about the market for the Company's stock and stock quotations
as required by Item 5 of Form 10-K is included in the SELECTED FINANCIAL DATA
section of the accompanying Annual Report to Shareholders for 1995 which
appears as Exhibit 13 in this filing, and is incorporated by reference in this
Form 10-K Annual Report.

The Company has no cash dividend paying history.

ITEM 6  SELECTED FINANCIAL DATA

The selected financial data required by Item 6 of Form 10-K is included in
SELECTED FINANCIAL DATA section of the accompanying Annual Report to
Shareholders for 1995, which appears as Exhibit 13 in this filing and is
incorporated by reference in this Form 10-K Annual Report.

ITEM 7  MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION
                     AND RESULT OF OPERATIONS
                                                
The discussion and analysis required by Item 7 of Form 10-K is included in
MANAGEMENT DISCUSSION AND ANALYSIS of the accompanying Annual Report to
Shareholders for 1995, which appears as Exhibit 13 in this filing and is 
incorporated by reference in this Form 10-K Annual Report.

ITEM 8  FINANCIAL STATEMENTS


The following financial statements, related notes thereto, and auditor's
report required by Item 8 of Form 10-K, are included in the accompanying
Annual Report to Shareholders for the years ended December 31, 1995, which
appears as Exhibit 13 in this filing and are hereby incorporated by reference
in this Form 10-K Annual Report:

Consolidated Balance Sheets - December 31, 1995 and 1994
Consolidated Statements for the Three Years Ended
              December 31, 1995:
        
              Income
              Shareholders' Investment
              Cash Flows
              Notes to Consolidated Financial Statements
              Report of Independent Public Accountants

ITEM 9  DISAGREEMENTS ON ACCOUNTING AND FINANCIAL DISCLOSURE

        None



                            PART III
                            --------
    
ITEM 10

Except for the table of Executive officers below, all other information called
for by Item 10 is hereby incorporated by reference from the Registrant's
definitive Proxy Statement for its Annual Meeting to be held on May 7, 1996
which Proxy Statement will be filed within 120 days after December 31, 1995.
<PAGE>
                  EXECUTIVE OFFICERS OF REGISTRANT
                  ---------------------------------
                                                    OFFICER HAS SERVED
                                                      IN CAPACITY
OFFICER                POSITIONS                AGE INDICATED SINCE
------                ----------                ---  -------------
Dennis G. Punches      Chairman of the Board     60   January 1990

Neal R. Sparby         President, Principal      59   October 1991
                       Executive Officer

David S. Patterson     Executive Vice-           55   October 1991
                       President
                       Principal Operating
                       Officer

William W. Kagel       Senior Vice President-    59   August 1969
                       Production

Alvin W. Keeley        Senior Vice President-    58   May 1979
                       Marketing

James R. Bohmann       Treasurer and Senior      49   May 1985
                       Vice President-Corporate
                       Development (effective
                       January 1, 1993) 

Patrick E. Carroll     Senior Vice President-    53   August 1987
                       Sales

Susan Mathison         Vice President-           47   August 1987
                       Administration and
                       Secretary (effective
                       October, 1991)        

Philip C. Colin        Vice President-           59   January 1989
                       Information Systems

John P. Stetzenbach    Controller and            40   January 1987             
                    Vice President- Finance   
                       & Principal Financial
                       Officer, (effective 
                       January 1, 1993) 
                      
              
ITEM 11, 12 and 13.

The information called for by Items 11, 12 and 13 is hereby incorporated by
reference from the Registrant's definitive Proxy statement for its Annual
Meeting to be held on May 7, 1996 which Proxy Statement will be filed within
120 days after December 31, 1995. 
<PAGE>
                             PART IV
                             -------

ITEM 14  EXHIBITS, FINANCIAL STATEMENT SCHEDULES AND REPORTS ON                
          FORM 8-K


(a)(1)   Financial Statements--The financial statements filed as           
part of this Annual Report are listed under Item 8.

(a)(2)   Financial Statement Schedules:
      
         All schedules have been omitted because they are not 
         applicable, not required or information is included in the
         Financial Statements or the Notes thereto.

Separate financial statements of the Registrant have been omitted since it is
primarily an operating company and all subsidiaries included in the
Consolidated Financial Statements are majority owned.

(a)(3)  Exhibits required to be filed by Item 601 of
        Regulation S-K:

           

EXHIBIT                                                 PAGE
REFERENCE                                              NUMBER
---------                                              ------
 3(a)  Articles of Incorporation of New Payco,           N/A
       Inc. and Agreement and Plan of Merger of
       New Payco, Inc. and Payco American Corporation
       dated March 26, 1993, which are Exhibits A and B, 
       respectively, to Registrant's definitive Proxy
       Statement for the 1993 Annual Meeting of 
       Shareholders, are hereby incorporated by reference
       to such Proxy Statement.

 3(b)  By-Laws of New Payco, Inc. which is Exhibit C to   N/A
       Registrant's definitive Proxy Statement for the
       1993 Annual Meeting of Shareholders, is hereby 
       incorporated by reference to such Proxy Statement.

10(a)  Lease agreement between Payco American Corporation  N/A
       and the Brookfield Investment Company dated
       July 12, 1979--Exhibit 1 of Registrant's Form 10-K
       for the fiscal year ended December 31, 1979
       is hereby incorporated by reference.
<PAGE>
10(b)  Lease agreement between Payco American Corporation   N/A
       and the Percom Investment Company dated August
       5, 1983--Exhibit 10(c) of Registrant's Form 10-K
       for the fiscal year ended December 31, 1983
       is hereby incorporated by reference.

10(c)  Purchase Order #92136 of Registrant dated            N/A
       June 8, 1982, pertaining to the purchase of
       software and hardware related to the Payco
       Automated Collection System--Exhibit 10(d)
       of Registrant's Form 10-K for fiscal year ended
       December 31, 1983 is hereby incorporated by
       reference.

10(d)  Lease agreement between Payco American Corporation   N/A
       and the Westlake Investment Company dated
       March 1, 1985--Exhibit 10(e) of Registrant's
       Form 10-K for the fiscal year ended
       December 31, 1985 is hereby incorporated
       by reference.

10(e)  Lease agreement between Payco American Corporation   N/A
       and the Dublin Investment Company dated July
       14, 1986--Exhibit 10(f) of Registrant's Form 10-K
       for the fiscal year ended December 31, 1986
       is hereby incorporated by reference.

10(f)  Lease agreement between Payco American Corporation   N/A
       and the Hacienda Investment Company dated
       October 14, 1986--Exhibit 10(g) of Registrant's
       Form 10-K for the fiscal year ended
       December 31, 1986 is hereby incorporated
       by reference.

10(g)  Modification, dated February 17, 1987, of the        N/A
       lease agreement filed as Exhibit 10(b) between
       Payco American Corporation and Percom Investment
       Company.--Exhibit 10(h) of Registrant's Form 10-K
       for fiscal year ended December 31, 1986 is 
       hereby incorporated by reference.
    
10(h)  Modification, dated December 30, 1986, of the        N/A
       lease agreement filed as Exhibit 10(a) between
       Payco American Corporation and Brookfield Investment
       Company.--Exhibit 10(i) of Registrant; Form 10-K
       for fiscal year ended December 31, 1986 is 
       hereby incorporated by reference.

10(i)  1988 Stock Option Plan of Payco American             N/A 
       Corporation--Incorporated by reference
       Exhibit A of Registrant's definitive  Proxy
       Statement for the 1989 Annual Meeting of 
       Shareholders.

10(j)  1992 Stock Option Plan of Payco American             N/A
       Corporation--Incorporated by reference
       Exhibit A of Registrant's definitive  Proxy
       Statement for the 1992 Annual Meeting of 
       Shareholders.

10(k)  Amendment to 1992 Payco American Stock               N/A 
       Option Plan, Incorporated by reference to
       Registrant's definitive Proxy Statement
       for the 1993 Annual Meeting of Shareholders.

10(l)  Modification, dated December 30, 1992 to the         N/A
       lease agreement filed as Exhibit 10(d)
       between Payco American Corporation and Westlake
       Investment Company Exhibit 10(l) of Registrant's 
       Form 10-K for fiscal year ended December 31, 1992
       is hereby incorporated by reference.
<PAGE>

13     Annual Report to security holders                    ____

22     List of subsidiaries as of December 31, 1995.        ____

27     Financial Data Schedule                              ____

(b)(3) Reports on Form 8-K

       No reports on Form 8-K were filed with the Securities and Exchange
Commission during the fourth quarter of the fiscal year ended December 31,
1995.
<PAGE>
                           SIGNATURES
                           ==========

Pursuant to the requirements of Section 13 or 15(d) of the Securities Exchange
Act of 1934, Payco American Corporation has duly caused this report to be
signed on its behalf by the undersigned, thereunto duly authorized.

DATE  MARCH 26, 1996                  BY  NEAL R. SPARBY
     ------------------               ------------------
                                      Neal R. Sparby,  President &
                                      Principal Executive Officer
                                      PAYCO AMERICAN CORPORATION

Pursuant to the requirements of the Securities Exchange Act of 1934, this
report has been signed below by the following persons on behalf of the
Registrant and in the capacities and on the dates indicated.

By  JAMES R. BOHMANN                   DATE   MARCH 26, 1996
   -------------------------                  --------------
    James R. Bohmann, Director

By  PATRICK E. CARROLL                 DATE   MARCH 26, 1996
    ------------------------                  --------------
    Patrick E. Carroll, Director     

By  WILLIAM W. KAGEL                   DATE   MARCH 26, 1996
    ------------------------                  --------------
    William W. Kagel, Director

By  ALVIN W. KEELEY                    DATE   MARCH 26, 1996
    ------------------------                  --------------
    Alvin W. Keeley, Director

By  DAVID S. PATTERSON                 DATE   MARCH 26, 1996
    ------------------------                  --------------
    David S. Patterson, Director &
    Principal Operating Officer

By  DENNIS G. PUNCHES                  DATE   MARCH 26, 1996
    ------------------------                  --------------
    Dennis G. Punches
    Chairman of the Board

By  NEAL R. SPARBY                     DATE   MARCH 26, 1996 
    ------------------------                  --------------
    Neal R. Sparby, Director &
    Principal Executive Officer

By  JOHN P. STETZENBACH                DATE   MARCH 26, 1996
    ------------------------                  --------------
    John P. Stetzenbach, Principal
    Financial & Accounting Officer   

By  WILLIAM A. INGLEHART                DATE  MARCH 26, 1996
    ------------------------                  --------------
    William A. Inglehart
    Director   

By  RAYMOND J. LARKIN                  DATE   MARCH 26, 1996
    ------------------------                  --------------
    Raymond J. Larkin
    Director   

By  RICHARD G. MILES                   DATE   MARCH 26, 1996
    ------------------------                  --------------
    Richard G. Miles 
    Director   

<PAGE>
By  BO S. GORANSON                     DATE   MARCH 26, 1996
    ------------------------                  --------------
    Bo S. Goranson   
    Director   

By  DENNIS SHEA                        DATE   MARCH 26, 1996
    ------------------------                  --------------
    Dennis Shea      
    Director   

(1) Not available for signature

<PAGE>
                                 EXHIBIT 21

               
                    LIST OF SUBSIDIARIES AS OF DECEMBER 31, 1995

Payco American Corporation has the following subsidiaries, all of which are
wholly owned and included in the consolidated financial statements of the
Company:
                                             STATE OF
                                           INCORPORATION
                                           -------------
Payco-General American Credits, Inc.       Delaware
National Account Systems, Inc.             Delaware
University Accounting Service, Inc.        Wisconsin
Reliance National Insurance Company LTD.   Bermuda
FM Services Corporation                    Arizona
Jennifer Loomis & Associates, Inc.         Arizona
Asset Recovery & Management Corp.          Wisconsin
Payco American International Corporation   Wisconsin
Professional Recoveries Inc.               Wisconsin
Indiana Mutual Credit Association, Inc.    Indiana
Furst and Furst, Inc.                      Wisconsin
Qualink, Inc.                              Wisconsin

Payco American Corporation has a majority interest in the following
subsidiaries, which are included in the consolidated financial statements of
the Company:

Pay-Tech, Inc.                             Wisconsin
Federal Collection Bureau, S.A. DE C.V.    Mexico