There is really no such thing as an unpaid bill. Those of us who do pay our bills ultimately pay for those who don't. Because bad debt represents an expense of doing business, it is partly offset by higher prices. Other consequences of non-payment include business failures and the loss of jobs. Collection, a part of accounts receivable management, helps businesses maintain their cash flows and stay profitable.
Collectors benefit consumers by helping to keep down the prices of goods and services.
They also offer debtors an opportunity to talk with a person who can help them resolve payment problems without litigation. The collection industry itself employs about 125,000 people. Finally, the health of the U.S. economy depends on the proper functioning of the credit system, which gives consumers many choices. The collection industry is a necessary part of this credit system.