An owner of a collection agency told me a judge in Civil Court, New York County stated to the agency's client: "Sir, when you go into business and give credit to others you can expect not to be paid by some".
Between that attitude from the court, the Regulators, FCRA, FDCPA, CFPB, GLBA and who knows what is next, people know they only have to pay if they want to.
Other notable events are box stores which cause many small businesses to close and of course eCommerce requiring payment before acquisition have dented the collection business. Commercial collectors are hurting the most because of these events.
Over-regulation and the new CFPB will ultimately cease collection activity, thereby driving businesses and credit grantors to stop issuing credit.
"Allowance for doubtful account" and "bad debt expense" will be so significant it could upset our tax system. Thereby making extension of credit impossible it will cause lenders to simply write off bad debt rather than waste time and money attempting to collect what is due and owing.
The net result is a stagnating economy with stunted growth. Without liquidity economies can't function.