PHILADELPHIA (CBS) – The struggling economy means debt collectors have more business than ever. The recent floods from Hurricane Irene and Tropical Storm Lee, means more Pennsylvania consumers are feeling the pinch.
“Individuals just don’t have the ability to pay right now,” said Harry Strausser, President of the Mid-Atlantic Collectors Association.
He says debt collection accounts are up, but consumer ability to pay up is at an all-time low.
“Consumers tend to find themselves in more and more debt because of this being a national economic downturn.”
Strausser says over the past three years, other states fared far worse than Pennsylvania. But now, damage from Irene and Lee is squeezing the Commonwealth’s consumers.
“You’ve got segments in eastern Pennsylvania now that have been hammered even harder and that will effect their economic ability to pay.”
Strausser says debt collectors are working with consumers and, depending on the type of debt, will take payments as low as $5 or $10.
Reported by Cherri Gregg, KYW Newsradio 1060