This newly updated bestseller by Marketdata examines the $12 billion business of debt collection agencies. Complaints by consumers about harassment by collectors still exists and tops the list of complaints to the FTC. With the recession, it has gotten worse, since it has become more difficult to collect on (liquidate) accounts. Lots of accounts are being placed, but colleting is more difficult, since many consumers are still out of work, have high debt service loads, face high gas prices, and are struggling to pay for the necessities, with little left over to repay debts.
Collections is a fragmented business of 4,500 mostly small firms. Major consolidation has taken place amongst collections agencies since the late 1990’s, and one firm, NCO Financial Systems, now accounts for $1.5 billion in sales, by virtue of acquiring its biggest competitor (OSI Solutions). Technology is making firms more efficient and profitability had risen until the recession hit. After a period of strong growth from 1999-2004, top-line revenue growth has slowed substantially – only 3.9% last year. Industry receipts fell by nearly 10% in 2008-2009—the first time in 20 years. Future growth will have to come from untapped niche segments such as healthcare accounts, legal, cell phone bills, municipal government, and outsourced IRS tax debt.
The study examines industry revenues/growth, competitor profiles/rankings, consumer debt trends and industry issues, extensive operating ratios, etc. Covers national revenues (1987-2010 actual, 2011 estimates, 20012 & 2016 forecasts), latest Census data industry operating ratios. The study examines consumer debt trends, foreclosure trends, bankruptcy trends, the debt buying market, outsourcing, status of IRS tax debt business, major market segments and more.
Contains 49 tables and charts. This report is also sold by chapters. Call for prices.