US Debt Collection Agencies 2022: An Industry Analysis

DUBLIN, February 22, 2022–(BUSINESS WIRE)–The “US Debt Collection Agencies: An Industry Analysis” report from Marketdata LLC has been added to from ResearchAndMarkets.com offer.

This recently updated bestseller from Marketdata examines the $15 billion business of debt collection agencies. Consumer complaints about harassment by collectors still exist and top the list of complaints filed with 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 off their debts in 2020.

Collections is a fragmented business of 3,200 mostly small companies. Industry consolidation continues and the company has become attractive to investors.

Technology such as artificial information makes businesses more efficient and skilled collectors are in high demand. Collections are moving overseas and the market for outsourced IRS debt has grown.

Main topics covered:

The study examines industry revenue/growth, consumer debt trends and industry issues, regulation, extended operating ratios, and more. industry operating ratios (national, state, city).

The study examines consumer debt trends, bankruptcy trends, 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.

Report on the nature and state of the industry

  • Definition and characteristics of the enterprise: history and development, census NAICS codes, operation of services, no. nationwide services/recent consolidation/mergers

  • Status report: decline no. agencies in the United States, effects of the pandemic

  • Demand Factors

  • Industry Trends: Profit Margins, Offshoring, Consolidation, Adaptive Learning Systems:

  • Collection techniques: discussion of “traditional” collection techniques and how agencies operate (letters, phone calls, legal action, follow up on omissions, use of agents), which methods work best, current collection rates, contingent fees, client specializations.

Consumer Complaints, Industry Regulation

  • Discussion of major complaints regarding collection harassment and unethical/illegal practices, privacy issues.

  • Consumer Financial Protection Bureau Findings 2020: Number 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 Agencies: FTC, FCC, CFPB

  • CFPB Annual Report 2021: Highlights of debt collection, new rules explained.

Key Industry Trends

  • Summary: Key Factors Influencing Industry Demand

  • Status of the industry in 2021: consolidation – number decreasing. of companies, declining profits, challenges for various aspects of the business (survey data from TransUnion)

  • Summary: Types of consumer debt held by type (amount in $: student loans, medical, credit cards, mortgages, car loans)

  • 2019 Major Debt Collection Trends: Compliance, Technology, Worker Skills, Company Cultures, Top 9 Collection Agency Trends for 2019

  • Discussion on: industry and customer consolidation, the emergence of artificial intelligence,

  • Impact of the Covid-19 pandemic on debt, by population segment (Millennials, Baby Boomers, Gen X, etc.)

  • Bankruptcy Trends: Personal vs. Business, Discussion of Chapter 7, 11, and 13 Types, Peak Levels and Reasons, Regional Differences

  • Growth of the debt buyback market.

  • Kaulkin Ginsberg Latest Research/Report Results

  • Emerging collection technologies – IT/Telecom systems integration, pre-authorized draft printing (large business, service operation, software vs. service desk approach), skip tracing, predictive dialing, check verification and computer databases.

Companies cited

  • Transworld Systems (including NCO Group, Altisource)

  • The Kaplan group

  • Encore Capital Group (including Midland Credit Management)

  • Portfolio Recovery Associates

  • Alorica Global Solutions (including Expert Global Solutions)

For more information on this report, visit https://www.researchandmarkets.com/r/5y0t4e

Source: Marketdata LLC

See the source version on businesswire.com: https://www.businesswire.com/news/home/20220222006005/en/

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