Buffalo, New York?s second-largest city, has long been plagued by plant closings, an exodus of residents and urban decay. But it has become one of the nation?s leading hubs for debt collectors, a shaky transformation powered by the same forces crippling most cities: the nation?s mortgage crisis and slumping economy, which have pushed consumers further into debt. As a result, an increasing number of banks, credit card companies and other lenders are turning to the dozens of collection agencies that have proliferated here. Profiting from the troubles stinging other, often wealthier, parts of the country is a peculiar twist for Buffalo, one of the nation?s poorest cities. Yet the flood of new business and the optimism that flows with it is helping to reenergize the city?s economy, even if it is built on an industry with a negative stigma.
See "Collection Agencies Add Scarce Jobs in Hard-Hit Region", Ken Belson, The New York Times, March 20, 2008