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Debt Collection Agencies in the US: Market Research Report

Market Research • Market Size • Industry Statistics • Industry Analysis • Industry Trends

Debt Collection Agencies Market Research Report | NAICS 56144 | Dec 2016

Pay up: Increased outsourcing of debt collection duties will support industry growth

IBISWorld’s Debt Collection Agencies market research report is a comprehensive guide to market size and growth prospects. Our industry reports offer strategic industry analysis of the factors influencing companies, including new product developments, economic, lifestyle and demographic influences, distribution and supply chain factors and pricing issues. Full analysis accompanies our data forecasts to illustrate how the market responds to emerging industry trends.

Report Snapshot
Industry Statistics & Market Size
Revenue
$11bn
Annual Growth 11-16
-2.7%
Annual Growth 16-21
Annual Growth
Profit
Profit
Employment
124,351
Businesses
9,044
Industry Threats & Opportunities
  • With consumers still cautious after the recession, industry revenue slightly declined despite rising aggregate household debt
  • Growth in consumer credit reversed during the early recovery as consumers tightened budgets
  • As credit markets thaw and economic recovery appears more wholesome, household debt will continue to grow
  • ... purchase to read more

Industry Analysis & Industry Trends

Over the five years to 2016, revenue for the Debt Collection Agencies industry is expected to fall. Moving past the recession, growth in the industry has been tied to several distinct epochs. Initially, the high rate of credit defaults in 2011 and 2012 created an influx of industry demand. With consumers still cautious in 2013, despite rising aggregate household debt, industry revenue slightly declined. From 2013 onward, households began to more readily assume debt yet industry revenue continued to decline. This is partly attributed to more stringent supervision from the Consumer Financial Protection Bureau (CFPB) and lower recovery rates. As the deleveraging process wrapped up, aggregate household debt is expected to strengthen over the five years to 2021... ... purchase to read more

Industry Report - Industry Products Chapter

Contingent-fee servicing

Contingent-fee servicing is forecast to generate 54.5% of industry revenue and is the most widely used method for recovering income on nonperforming or delinquent debt accounts. Under the system, creditors write off loans or place them with collection agencies after accounts are deemed uncollectible. Then, collection agencies are paid a fee calculated as a percentage of the amount of debt recovered on these uncollectible accounts.

Receivables are generally valued on the creditor's balance sheet at a discount, with reserves established to hedge against the possibility of noncollection. The commission rate for contingent-fee services is generally based on the degree of collection difficulty. Gen.. ... 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... purchase to read more

     


    Industry ProductsRelated Reports

    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 deep discounts and then pursue outstanding balances for their own gain.

    Industry Products
    Contingent-fee servicingFixed-fee servicing Portfolio acquisitionCollateral recovery and repossession services
     
    Industry Activities
    Account collection servicesBill collection servicesDebt collection servicesDelinquent account collection servicesTax collection services on a contract or fee basisCollection on debt portfoliosRepossession servicesCredit reporting services


    Table of Contents
    About this Industry
    Industry Definition
    Main Activities
    Similar Industries
    Additional Resources
    Industry at a Glance
    Industry Statistics Snapshot
    Industry Structure
    Executive Summary
    Industry Performance
    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
  • Products & Markets
    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
  • Competitive Landscape
    Market Share Concentration
    Key Success Factors
    Cost Structure Benchmarks
  • Profit
  • Wages
  • Purchases
  • Depreciation and marketing
  • Other 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
    Major Companies
    Expert Global Solutions
    Portfolio Recovery Associates Inc.
    Encore Capital Group
  • Table: Expert Global Solutions - financial performance
  • Table: Portfolio Recovery Associates Inc. - financial performance
  • Table: Encore Capital Group - financial performance
  • Operating Conditions
    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
    Key Statistics
  • Table: Industry Data for the Debt Collection Agencies Industry
  • Includes:
  • Industry Revenue (2007-2021)
  • Industry Gross Product (2007-2021)
  • Establishments (2007-2021)
  • Businesses (2007-2021)
  • Employment (2007-2021)
  • Wages (2007-2021)
  • Aggregate Household Debt (2007-2021)
  • Table: Annual Percentage Change for Key Industry Data
  • Table: Key Ratios for Industry Key Data
  • Table: Industry Financial Ratios
  • Jargon & Glossary
    Accounts Receivable
  • Money owed to a company for goods or services it has sold.
  • Charged-Off Debt
  • Also known as bad debt or write-offs, this debt is written off as a loss because it is not expected to be paid back.
  • 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.
  • Default Rate
  • Also known as a delinquency rate, this rate is calculated as the level of defaults (amount of times a person is unable to meet a financial obligation) in relation to total debt outstanding.
  • 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.

  • Why Buy this Report?
    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 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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