In today's recession, collection companies are suffering like everyone else. Data shows that they started to suffer from declining liquidation, increased placements and staffing cuts.

Starting January 2009, the U.S. savings rate shot up and continued to spike. By May 2009 the rate was the highest level of savings by consumers in the past sixteen years.

Typically, an increase in the U.S. savings rate would mean that those in debt will be more fiscally responsible and try to pay off debts that they may owe in case of an unexpected adverse event. Sadly, the first half of 2009 has illustrated that this is not what is going to happen and the collections industry should not expect it to.

As if this wasn't bad enough, sustaining savings growth is very uncertain because part of the increase was the result of the Obama stimulus package, which sent disbursements to consumers on a one time basis. Also, in today's recession, any type of consumer savings may be considered a means to keep heads afloat as opposed to future planning. And although savings boost personal income, they slow down consumer spending.

For the first time, collections agencies need to change their focus greatly. Its not that debtors won't pay, it's that they can NOT pay. So basically, the future success of collection companies is depending on U.S. economic recovery.

Keeping this in mind, educated conclusions may be drawn about the future growth in the collections industry. Better employment opportunities could be an invaluable gain for the collection industry. If debtors are employed, they are more likely to resolve their issues. Renewed consumer confidence and spending would be a tremendous boost.

There is an looming tide of pro-consumer adjustments that the collection industry can do little about. How it can truly affect change would be the quality of responses they offer, and that they are carefully considered and level-headed. Finally, increased access to credit is an absolute necessity for the collections industry.