Housing Woes Spur Boom in City Collection Agencies

Ugh. You knew this one was coming: Crain’s reports this week (subscription required) that the number of firms licensed to collect debts in New York City has nearly doubled in the last two years.

Part of the reason for the surge from 141 licensed firms in 2005 to 274 today is the higher mortgage rates many outer-borough homeowners now pay. These New Yorkers must sink more income into mortgage payments–or face foreclosure–so they have less to pay off other debts, such as those on credit cards.