DUBLIN, March 16, 2022 — The “U.S. Debt Collection Agencies: An Industry Analysis” report from Marketdata LLC has been added to ResearchAndMarkets.com’s offering.
This newly updated bestseller by Marketdata examines the $15 billion business of debt collection agencies. Complaints by consumers about harassment by collectors still exists and tops the list of complaints to the FTC.
Federal and state regulations have reduced recovery rates, resulting in slow growth. However, the Covid-19 pandemic really didn’t hurt this business, as consumers used stimulus payments and enhanced unemployment benefits to pay down their debts in 2020.
Collections is a fragmented business of 3,200 mostly small firms. Industry consolidation continues, and the business has become attractive to investors.
Technology such as artificial information is making firms more efficient and skilled collectors are in high demand. Collections is moving off-shore and the outsourced IRS debt market has grown.
Key Topics Covered:
The study examines industry revenues/growth, consumer debt trends and industry issues, regulation, extensive operating ratios, etc. Covers national revenues/growth (2002-2017 actual, 2019, 2020, 2021 estimates, 2022 & 2025 forecasts), exhaustive Census data industry operating ratios (national, state, city).
The study examines consumer debt trends, bankruptcy trends, the debt buying market, outsourcing, major market segments and more.
Competitor profiles for: TransWorld Systems, Encore Capital, The Kaplan Group, Alorica Global Solutions, and Portfolio Recovery Associates are included.
Nature & Status Report of the Industry
Definition & characteristics of the business: history & development, Census NAICS codes, how services operate, no. of services nationwide/recent consolidation/mergers Status Report: declining no. of agencies in U.S., effects of the pandemic Demand factors Industry trends: profit margins, offshoring, consolidation, adaptive learning systems: Collection Techniques: discussion of “traditional” collection techniques & how agencies operate (letters, phone calls, legal action, skip tracing, use of operatives), what methods work best, current recovery rates, contingency fees, customer specializations.
Consumer Complaints, Industry Regulation
Discussion of major complaints about collection harassment and unethical/illegal practices, privacy issues. 2020 findings of Consumer Financial Protection Bureau: No. and type of complaints, compared to 2018 Industry regulation, by: 1977 Fair Debt Collection Practices Act, Telephone Consumer Protection Act (1991), Fair Credit Reporting Act (1970), Health Insurance Portability and Accountability Act (1996). Regulatory bodies: FTC, FCC, CFPB CFPB Annual Report 2021: Debt Collection Highlights, new rules explained.
Major Industry Trends
Summary: major factors affecting demand for the industry Industry status in 2021: consolidation – declining no. of firms, decline in profits, challenges for various aspects of the business (TransUnion survey data) Summary: Types of consumer debt held by type ($ amount: student loans, medical, credit card, mortgages, auto loans) 2019 major debt collection trends: compliance, technology, worker skills, company cultures, top 9 collection agency trends for 2019 Discussion of: industry & client consolidation, the emergence of artificial intelligence, The Covid-19 pandemic’s impact on debt, by population segment (Millennials, Baby Boomers, Gen X, etc.) Bankruptcy trends: personal vs. business, discussion of Chapter 7, 11, 13 types, peak levels and reasons, regional differences Growth of the debt buying market. Findings of latest Kaulkin Ginsberg research/reports Emerging collection technologies – integration of computer/telecommunication systems, pre-authorized draft printing (leading firms, how service works, software vs. service bureau approaches), skip tracing, predictive dialling, check verification & computer databases.
Transworld Systems (incl. NCO Group, Altisource) The Kaplan Group Encore Capital Group (incl. Midland Credit Management) Portfolio Recovery Associates Alorica Global Solutions (incl. Expert Global Solutions)