How Collection Law Firms Embrace Strategic Growth Through Diversification
As the collections industry continues to evolve, law firms are adopting new strategies to stay competitive and meet the needs of modern creditors.
According to the 2024 TransUnion Debt Collection Industry Report, 64% of collection firms say business diversification is essential for long-term success. This shift reflects a growing recognition that traditional, regionally focused legal practices must evolve to manage rising operational costs, shrinking margins, and increasing client expectations.
From geographic expansion to service line growth, debt collection law firms are diversifying their operations to improve performance and sustainability in a changing market.
Expanding Geographic Reach
For many firms, growth begins with expanding into new jurisdictions. Clients with national portfolios increasingly expect legal partners that can operate across state lines while maintaining compliance and consistency. Opening offices in additional states allows law firms to manage larger account volumes, meet licensing requirements, and offer creditors a more unified legal experience.
This approach has helped firms transition from local providers to national legal service organizations, better positioned to serve banks, debt buyers, healthcare systems, and other large-scale creditors.
Investing in Infrastructure and Networks
In addition to physical expansion, some firms are acquiring or partnering with existing legal networks to accelerate their growth. These relationships provide access to established infrastructures, experienced personnel, and nationwide systems for legal collections and account servicing.
For example, Florida-based Pollack & Rosen, P.A. acquired AACAnet to accelerate its national platform build-out. The acquisition provided the firm with the operational framework to serve clients across the country and strengthened its ability to manage accounts efficiently while maintaining high compliance standards.
“To succeed today, a firm needs to be responsive to where its clients are and what they need,” said Joseph Rosen, Managing Attorney at Pollack & Rosen. “Our expansion into new jurisdictions and the acquisition of AACAnet reflect our commitment to building a national platform with the depth to handle complex portfolios and the experience to manage them with integrity.”
Diversifying Service Lines
Beyond geographic growth, collection law firms are expanding their offerings to support more stages of the account lifecycle. In addition to post-judgment recovery, many firms now provide pre-litigation collections, portfolio servicing, legal processing, and compliance consulting.
TransUnion’s report notes that many agencies are also diversifying into new debt types such as commercial, healthcare, and utilities. Others are expanding communication channels to include digital tools, self-service portals, and AI-driven workflows to improve consumer engagement and recovery rates.
This kind of service diversification allows firms to provide more value to clients while adapting to consumer preferences and regulatory expectations.
Adapting to Market Pressures
The shift toward diversification is increasingly necessary. TransUnion’s data shows that account volumes are up, but collectability is down. Firms are facing pressure to maintain performance with fewer resources and more oversight. Those that invest in growth, technology, and operational flexibility are better positioned to meet these challenges.
Law firms that once focused on single states or narrow account types are now building resilient, scalable models designed for long-term success. Through strategic expansion and a commitment to consumer-conscious practices, these firms are helping shape the future of legal collections.
