All debts paid: Aggregate household debt is expected to expand, boosting industry revenue

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...purchase to read more.

Industry Statistics & Market Size
Annual Growth 12-17
Forecast Growth 17-22

Industry Threats & Opportunities

  • Industry revenue is expected to contract as regulations continue mounting
  • Consumers tightened budgets in response to salary cuts, layoffs and an uncertain financial future
  • As customers consolidate, the need for larger debt agencies grows
  • Industry Report - Industry Investment Chapter

    Investment requirements largely depend on the size of the operation and the amount of information technology that an operator is seeking to use. The industry is largely labor intensive with wages accounting for nearly 42.9% of industry revenue in 2017. The quantity and quality of employees are extremely important to industry performance. More employees mean that an industry participant can be more thorough in collection procedures, which directly increases revenue. But it is not simply the total number of employees that is important; it's also the quality of the training each employee receives. Due...purchase to read more.

    Additional Insights for the Debt Collection Agencies Industry

    IBISWorld identifies 250 Key Success Factors for a business.The most important for the Debt Collection Agencies Industry are

  • Maintenance of excellent customer relations
  • Highly trained workforce
  • Having a high prior success rate (including completed prior contracts)
  • IBISWorld analysts also discuss how external factors such as Aggregate household debt and Outsourcing to the Debt Collection Agencies industry in the Debt Collection Agencies industry impact industry performance..

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    What's in this report

    What is the Debt Collection Agencies Industry?

    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.

    Industry Products
  • Contingent-fee servicing
  • Fixed-fee servicing
  • Portfolio acquisition
  • Collateral recovery and repossession services
  • Industry Activities
  • Account collection services
  • Bill collection services
  • Debt collection services
  • Delinquent account collection services
  • Tax collection services on a contract or fee basis
  • Collection on debt portfolios
  • Repossession services
  • Credit reporting services
  • Table of Contents

    Industry Definition
    Main Activities
    Similar Industries
    Additional Resources
    Industry Statistics Snapshot
    Industry Structure
    Executive Summary
    Executive Summary
    Key External Drivers
  • Aggregate household debt
  • Outsourcing to the Debt Collection Agencies industry
  • Per capita disposable income
  • Yield on 10-year Treasury note

  • Current Performance
  • Consumer debt
  • Regulations begin to take their toll
  • Chart: Revenue Growth

  • Industry Outlook
  • Consumer credit
  • Mergers and acquisitions
  • Technology and profit
  • Table: Debt Collection Agencies Industry Revenue Outlook

  • Industry Life Cycle
  • Life cycle reasons
  • Chart: Benchmarking - Debt Collection Agencies Industry Lifecycle vs The Economy

  • Supply Chains
    Key Buying Industries
  • Credit Card Issuing
  • Real Estate Loans & Collateralized Debt
  • Apartment Rental
  • Healthcare and Social Assistance

  • Key Selling Industries
  • Credit Bureaus & Rating Agencies
  • Credit Card Issuing
  • Real Estate Loans & Collateralized Debt

  • Products & Services
  • Contingent-fee servicing
  • Portfolio acquisition
  • Fixed-fee servicing
  • Other
  • Collateral recovery and repossession services
  • Chart: Debt Collection Agencies Industry Products and Services Segmentation

  • Demand Determinants
  • Economic growth
  • Interest rates
  • Desire to reduce operating expenses
  • Disposable income

  • Major Markets
  • Financial services
  • Telecommunications
  • Other
  • Healthcare
  • Retail and commercial
  • Government
  • Chart: Major Market Segmentation for the Debt Collection Agencies Industry

  • International Trade
    Business Locations
    Chart: Business Locations by State
    Market Share Concentration
    Key Success Factors
    Cost Structure Benchmarks
    ProfitWagesPurchasesDepreciation and marketingOther expenses
  • Chart: Cost Structure Benchmarking – Sector vs Debt Collection Agencies

  • Basis of Competition
  • Internal competition
  • External competition

  • Barriers to Entry
  • Table: Barrier to Entry Checklist for the Debt Collection Agencies Industry

  • Industry Globalization
    Alorica Inc., Encore Capital Group Inc.,
  • Table: Alorica Inc. - financial performance
  • Table: Encore Capital Group Inc. - financial performance

  • Capital Intensity
  • Chart: Level of Capital Intensity for the Debt Collection Agencies Industry
  • Chart: Tools of the Trade: Growth Strategies for Success

  • Technology & Systems
    Revenue Volatility
  • Chart: Volatility vs Industry Growth

  • Regulation & Policy
    Industry Assistance
    Table: Industry Data for the Debt Collection Agencies Industry
  • Industry Revenue (2008-2022)
  • Industry Gross Product (2008-2022)
  • Establishments (2008-2022)
  • Businesses (2008-2022)
  • Employment (2008-2022)
  • Wages (2008-2022)
  • Aggregate Household Debt (2008-2022)

  • Table: Annual Percentage Change for Key Industry Data
    Table: Key Ratios for Industry Key Data
    Table: Industry Financial Ratios
    Accounts Receivable
  • Money owed to a company for goods or services it has sold.
  • Collectivity Rate
  • Also known as a recovery rate, this rate is calculated by subtracting recovered income from total outstanding debt. The higher the rate, the greater percentage of income recovered.
  • Nonrevolving Credit
  • Credit unable to be used after payment, including auto, home and student loans.
  • Primary Placement
  • An account that is typically 90 to 270 days past due and has the highest recovery rates and lowest commissions.
  • Revolving Credit
  • Credit lacking a fixed number of payments that can also be used again after payment, such as credit cards.
  • Secondary Placement
  • An account generally 270 to 360 days past due and has already been recalled from a primary collection agency.
  • Skip Tracing
  • Collection work associated with collecting information that will assist collectors in locating delinquent debtors.
  • Tertiary Placement
  • An account 360 days past due, which has the lowest recovery rates and highest commissions. It has generally been recalled from one or more collection agencies.
  • What Our Customers Say

    Why buy this report?

    IBISWorld’s Industry Market Report on Debt Collection Agencies is a comprehensive guide to market size and growth prospects. Ensure due diligence in your research with our strategic analysis of the factors influencing companies, including new product developments; economic, lifestyle and demographic influences; distribution and supply chain factors; and pricing issues.

    IBISWorld industry market research reports enable you to:
    • Find out about key industry trends
    • Identify threats and opportunities
    • Inform your decisions for marketing, strategy and planning
    • Quickly build competitive intelligence
    This report on Debt Collection Agencies:
    • Provides Market Size information to assist with planning and strategic decisions.
    • Includes the necessary information to perform SWOT, PEST and STEER analysis.
    • Helps you understand market dynamics to give you a deeper understanding of industry competition and the supply chain.
    • Analyses key performance and operational metrics so that you can benchmark against your own business, that of your customers’ businesses, or your competitors’ businesses.
    The Debt Collection Agencies market research report includes:
    • Historical data and analysis for the key drivers of this industry
    • A five-year forecast of the market and noted trends
    • Detailed research and segmentation for the main products and markets
    • An assessment of the competitive landscape and market shares for major companies
    • And of course, much more

    IBISWorld reports on thousands of industries around the world. Our clients rely on our information and data to stay up-to-date on industry trends across all industries. With this IBISWorld Industry Research Report on Debt Collection Agencies, you can expect thoroughly researched, reliable and current information that will help you to make faster, better business decisions.

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