56144 - Collection Agencies
When navigating the complex world of government contracting and business classification, NAICS Code 56144 plays a significant role in identifying businesses involved in the collection of delinquent debts. Whether you're a small business owner looking to enter the debt collection industry or a government agency seeking qualified contractors, understanding NAICS 56144—Collection Agencies—is essential.
What is NAICS Code 56144?
NAICS Code 56144, titled Collection Agencies, encompasses establishments primarily engaged in collecting payments on past-due accounts and debts on behalf of other organizations. These businesses are critical players in financial recovery, helping creditors recoup funds and manage delinquent accounts. Beyond collection, firms in this classification may also offer credit reporting and debt purchasing services, making their role vital in the broader credit and financial services ecosystem.
Sector Overview
This industry falls under the broader sector of Administrative and Support and Waste Management and Remediation Services. This sector includes services that support the day-to-day operations of other organizations, including legal, business, and administrative support services.
Typical Business Activities Under NAICS 56144
Businesses operating under this NAICS code commonly engage in:
- Debt Collection Services: Contacting debtors to collect overdue payments on behalf of creditors.
- Credit Reporting Agencies: Compiling and maintaining credit information on individuals and businesses.
- Debt Purchasing Companies: Buying delinquent debts at a discount and attempting collection on their own behalf.
These activities are vital for maintaining healthy credit flows and supporting the financial stability of companies across many industries.
Size Standards for NAICS 56144
To qualify as a small business under NAICS 56144 for federal contracting purposes, the SBA sets size standards typically based on revenue. The current size standard for Collection Agencies is:
| NAICS Code | Industry Title | Size Standard |
|---|---|---|
| 56144 | Collection Agencies | $30 million in annual receipts |
Businesses at or below this threshold are considered small businesses and may be eligible for various government contracting preferences and programs.
Examples of Businesses Under NAICS 56144
To further clarify, here are some typical examples of businesses classified under NAICS 56144:
- Third-Party Debt Collection Agencies that act on behalf of hospitals, credit card companies, or utilities.
- Credit Reporting Bureaus that provide consumer credit histories to lenders and creditors.
- Debt Purchase Companies that acquire unpaid debts and attempt to collect them as the owner of the debt.
NAICS 56144 Code Details Table
| Attribute | Description |
|---|---|
| NAICS Code | 56144 |
| Title | Collection Agencies |
| Sector | Administrative and Support and Waste Management and Remediation Services |
| Primary Activities | Debt collection, credit reporting, debt purchasing |
| Size Standard | $30 million in annual receipts |
| Typical Businesses | Debt collection agencies, credit reporting firms, debt buyers |
Frequently Asked Questions (FAQs)
What services do businesses under NAICS 56144 provide?
Businesses primarily collect payments on delinquent debts for others and may also offer credit reporting and debt purchasing services.
Who regulates businesses under NAICS 56144?
Collection agencies are subject to both federal and state regulations, including the Fair Debt Collection Practices Act (FDCPA).
How do I know if my business falls under NAICS 56144?
If your company specializes in collecting delinquent accounts, managing credit reports, or purchasing debt for collection, it most likely qualifies.
What is the benefit of classifying under NAICS 56144?
Classification helps in federal contracting opportunities, eligibility for small business programs, and provides clarity in industry benchmarking.
Are credit reporting agencies included in NAICS 56144?
Yes, credit reporting agencies that collect and maintain credit information fall under this code.
Conclusion
NAICS Code 56144 — Collection Agencies — covers a crucial segment within the administrative and support service sector dedicated to debt recovery and credit management. Understanding this code helps businesses accurately classify themselves, comply with regulations, and seize government contracting opportunities. Whether you're a debt collector, credit reporting agency, or debt purchaser, embracing the specifics of NAICS 56144 can pave the way to business growth and compliance success.
Keywords: NAICS Code 56144, Collection Agencies, Debt Collection Services, Credit Reporting Agencies, Debt Purchasing Companies, Small Business Size Standards, Federal Contracting NAICS
