Unprecedented Changes in the
Collection Market Are Here to Stay
Every attorney is familiar with the seismic changes that have occurred in the legal collections market in the recent past.
- Declining placements.
- Increased compliance demands
- A growing client preference for multi-state firms
- Shrinking margins
- Hostility from courts and regulators
- Aggressive, predatory consumer attorneys
- Downward fee pressure
Many attorneys who have been through many market cycles believed this harsher environment would blow over. Unlike previous cycles, however, many of these changes appear to be systemic and permanent.
The Changes in the Collection Marketplace Place
Smaller Firms at a Competitive Disadvantage
Although these changes have impacted firms large and small (see the Hanna case), they have been especially difficult for smaller firms.
Many creditors are reducing the size of their networks because of their own compliance and management pressures. It is easier for them to manage one firm in five states than it is to manage five firms in five states.
This simple but ruthless numbers game leaves many excellent smaller firms excluded from business by clients they have served well for many years.
Eltman Law works with small firms on creative succession plans that benefit all parties. Call 212-660-3164 for more info.