Debt Collector Profits Soar With People Flush and Easy to Find
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Bolstered cash collections helped profits more than triple at two of the largest publicly traded debt collectors, as stimulus checks and lockdowns left U.S. borrowers stuck at home with extra cash on hand.
PRA Group, Inc. said that cash collections jumped 8% to a record, while Encore Capital Group Inc. said revenue got a $66 million bump from better-than-expected collections. Operating expenses at both firms were also down significantly.