Debt Collection Agencies in the US
Initially, the high rate of credit defaults in 2012 created an influx of demand for the Debt Collection Agencies industry, as operators were tasked with collecting debt from late payers. Despite rising aggregate household debt in 2013, and cautious consumers, industry revenue declined slightly. Aside from real estate and home equity lines of credit, the levels of debt in most major categories, as reported by the Federal Reserve, have increased steadily since the fourth quarter of 2015. During the five-year period to 2022, aggregate household debt is expected to expand. This should result in a steady increase in potential revenue sources, while the regulations proposed by the Consumer Financial Protection Bureau are likely to come to full fruition over the next five years.
The Debt Collection Agencies industry comprises businesses that pursue payments on debts owed by individuals and businesses. Most collection agencies operate as agents of creditors and render their services for a fee or percentage of the total amount owed. Other agencies purchase debt portfolios from creditors at a discount and then pursue outstanding balances for their own gain.
This report covers the scope, size, disposition and growth of the industry including the key sensitivities and success factors. Also included are five year industry forecasts, growth rates and an analysis of the industry key players and their market shares.