Credit is due: Increasing unemployment and debt collection outsourcing have driven growth

IBISWorld’s Debt Collection 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.


Industry Analysis & Industry Trends

The Debt Collection industry typically thrives when the economy is weak, as this can lead to households defaulting on loans and trigger a rise in business bankruptcies. Strong economic conditions can have the opposite effect on the industry. This is due to households and businesses making efforts to pay down debt and boost savings, while tighter lending practices can result in better loans with less likelihood of default. Industry revenue is projected to display strong growth of 4.8% during 2016-17, due to expectations of higher unemployment, more bankruptcies and increased household debt as a proportion of assets.

Larger companies in the industry benefit from economies of scale and branding...

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Industry Report - Industry Products Chapter

The industry includes two main types of debt collection: contingent fee servicing and portfolio acquisition servicing. The main difference between these two is the debt holder. Contingent collection agencies collect debt on behalf of the original creditor for a fee, while debt buyers gain the rights to any money collected on a portfolio or purchased debt ledger.

Portfolio acquisition services

Portfolio purchasing has become a popular alternative to contingent fee servicing over the past decade, and this segment is now the largest in the industry. Most purchased portfolios originate from the banking sector and retail markets. The segment is estimated to account for 62.7% o..

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Industry Products

What is the Debt Collection Industry?

Debt collection firms retrieve debt payments from individuals and businesses that have failed to meet the terms and conditions outlined by their loan agreements. A firm can act as an agent on behalf of a creditor, for which the firm receives a fee or percentage of the total amount collected. Alternatively, firms can purchase bad debt from the original creditors at a discount on its face value.

Industry Products
Contingent fee services
Portfolio acquisition services
Other debt collection services
Industry Activities
Account collection services
Bill collection services
Collection agency operations
Debt collection services
Debt portfolio collection services
Debt purchasing
Other debt purchase and collection services
Repossession services
Tax collection on a contract or fee basis

Table of Contents

About this Industry

Industry Definition
Main Activities
Similar Industries
Additional Resources

Industry at a Glance

Industry Performance

Executive Summary
Key External Drivers
Current Performance
Industry Outlook
Industry Life Cycle

Products & Markets

Supply Chain
Products & Services
Demand Determinants
Major Markets
International Trade
Business Locations

Competitive Landscape

Market Share Concentration
Key Success Factors
Cost Structure Benchmarks
Basis of Competition
Barriers to Entry
industry Globalisation

Major Companies

Operating Conditions

Capital Intensity
Technology & Systems
Revenue Volatility
Regulation & Policy
Industry Assistance

Key Statistics

Industry Data
Annual Change
Key Ratios

Jargon & Glossary

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