Industry Analysis & Industry Trends
After a rising tide of debt swamped the economy, collectability rates fell, canceling out the spike in debt collection opportunities and hurting revenue. However, the economy is set to recover over the next five years, with improving debt recovery rates, declining unemployment and higher housing prices. As a result, debt collection agencies will experience renewed demand, resulting in modest revenue growth... purchase to read more
Industry Report - Industry Analysis Chapter
The availability of collection opportunities (i.e. the number of defaulted accounts that an agency services) typically determines the Debt Collection Agencies industry's performance. The amount of debt available for the industry to collect is derived from total consumer debt and the degree to which delinquent debt is outsourced to credit agencies. The recovery rate (i.e. the percentage of debt that an agency is able to collect) is also an important component of industry performance and is generally influenced by individual agency strategies and macroeconomic conditions, such as household disposable income and the unemployment rate.
During the five years to 2014, industry revenue is expected to increase at an annualized rate of 1.3% to $13.2 billion... purchase to read more