Debt Collection Industry Statistics [Fresh Research]

The debt collection industry is a vital part of the economy, and it's important to stay up to date on the latest industry statistics. In this blog post, we'll take a look at the latest debt collection industry statistics to get a better understanding of the current state of the industry.

We'll explore the size of the industry, the number of debt collection agencies, the amount of debt collected, and more. By the end of this post, you'll have a better understanding of the debt collection industry and how it affects the economy.

Debt Collection Industry Statistics Overview

In 2018, total revenue for the debt collection industry was $11.5 billion, a decrease from $13.5 billion in 2013, while consumer debt grew to almost $14 trillion in 2019. The industry averages a 20% collection rate, and there are about 258,000 jobs for bill and account collectors.

However, the industry is expected to experience a decline of 8% between 2018 and 2028, due to the automation of collections work.

It shows that while consumer debt is increasing, the industry is experiencing a decrease in revenue and jobs due to automation. This could have a significant impact on the industry and the economy as a whole.

US consumers had over 16 trillion dollars in debt in Q2 of 2022, with the majority being home mortgages and the second-largest component being student loan debt.

The collections balances declined by more than $8 billion from the end of 2019 to the midpoint of 2020, and third-party collections activity is expected to increase in 2021 due to the effects of the COVID-19 pandemic.

This shows the impact of the pandemic on the debt collection industry and how it is affecting the number of firms, efficiencies, and profit margins.

Agencies that invested in technology and laid off 20% of their collector staff saw an average 9% increase in productivity of the remaining 80% agents.

Investing in technology and making strategic layoffs can help debt collection agencies boost productivity and quickly adapt to a remote work ecosystem. This is especially important during the pandemic, when many businesses have had to transition to remote work.

Nearly half of people who experienced medical bankruptcy named hospital bills as their biggest expense, with the average hospital stay in the U.S. costing $5,220 per day compared to just $765 in Australia.

This highlights the high cost of medical care in the U.S. and the burden it places on individuals who are already struggling with medical debt. In addition, this can make it harder for these individuals to buy houses or get a decent rate on a credit card, thus affecting the Debt Collection Industry.

Unpaid medical bills have become the largest source of debt owed to collection agencies, increasing from $81 billion in 2016 to $140 billion in 2020.

Medical debt is a growing problem for Americans, and collection agencies are increasingly relying on medical debt to make up for losses from other sources of debt.

The number of people employed in the Debt Collection Agencies industry in the US declined -0.2% on average over the five years between 2018 and 2023, but the average business in the Debt Collection Agencies industry in the US now employs more workers than it did five years ago.

This proves that the industry is growing despite the slight decline in the number of people employed in the industry. It also indicates that the industry is becoming more efficient and that businesses are able to do more with fewer people.

Debt collection agencies employing more than 250 people collected 379 thousand U.S. dollars of debt in 2016, indicating an increase in the employment statistics of the debt collection industry.

Thus, the debt collection industry is growing, which suggests that more debt collection agencies are being employed and more debt is being collected.

In the UK, total household debt has more than doubled since 2000, but the debt per capita and debt-to-income ratio have remained relatively stable since 2010.

Mortgages account for most of the outstanding personal lending, and personal loans and credit cards are the main sources of unsecured debt.

In 2021, two thirds of consumers in the U.S. were in debt, mainly due to mortgages and credit cards, and the average value of credit card debt was above 6,000 U.S. dollars.

BNPL emerged as an alternative to credit cards and individuals spent a higher share of their earnings to pay back their financial obligations. This indicates an increase in the debt payments to income ratio, which could lead to more bankruptcies.

Supplementary Statistics

In 2019, the global debt collection industry accrued around 5 billion U.S. dollars in revenue.

This highlights the industry's ability to generate significant revenue, demonstrating its importance in the global economy. This statistic is a valuable insight into the industry's performance and provides a useful benchmark for future growth.

As of January 2021, the debt collection industry in the United States employed almost 120,000 people.

This highlights the sheer number of people employed in the industry, demonstrating the importance of debt collection in the US economy. It also serves as a reminder of the impact debt collection has on individuals and businesses alike, as it is a necessary part of the financial system. This statistic is an important part of understanding the debt collection industry and its impact on the US economy.

In 2020, Encore Capital Group, a leading debt collection agency, had a revenue of around 1.27 billion U.S. dollars.

The company has been able to generate a significant amount of revenue in 2020, despite the economic downturn caused by the COVID-19 pandemic. This statistic is a clear indication of the strength of the debt collection industry and the potential for growth in the future.

In 2020, the total outstanding consumer debt in the United States was approximately 14.56 trillion U.S. dollars.

This serves as a powerful illustration of the immense scale of the debt collection industry, and the challenges it faces in attempting to recover outstanding debt. It also highlights the importance of debt collection services in helping to reduce the burden of consumer debt.

In 2020, the Consumer Financial Protection Bureau (CFPB) received roughly 82,700 debt collection complaints in the United States.

There is a need for consumers to be aware of their rights when it comes to debt collection and to be vigilant in protecting themselves from potential abuses. It also serves as a reminder of the importance of the CFPB in providing a platform for consumers to voice their grievances and seek redress.

As of 2021, the global debt collection software market is expected to grow at a compound annual growth rate of around 12.3% from 2020 to 2027.

The market is on an upward trajectory, with a projected 12.3% compound annual growth rate from 2020 to 2027. This is a promising sign for those in the industry, as it indicates that the demand for debt collection software is likely to remain strong in the coming years.

Approximately 86% of the outstanding debt in the United States in 2019 was categorized as being in collection status for more than 180 days.

A large majority of outstanding debt is in collection status for an extended period of time, indicating that debt collection is a major issue in the country. This statistic is an important piece of information for anyone looking to understand the debt collection industry and its impact on the US economy.

As of the third quarter of 2020, the five states with the highest compilation of debt collection are Georgia (41.9%), Louisiana (39.7%), South Carolina (39%), Texas (38.7%), and Mississippi (38.1%).

Debt collection is a major issue in these five states, with Georgia having the highest compilation of debt collection. This is an important statistic to consider when discussing the Debt Collection Industry, as it highlights the areas where debt collection is most prevalent and where it is having the most impact.

In Q3 2020, approximately 7.0% of consumers had debt in collections on their credit reports.

This highlights the fact that a significant portion of consumers are struggling to keep up with their financial obligations, and are at risk of having their debt sent to collections. This statistic is a powerful reminder of the importance of staying on top of one's finances, and the potential consequences of not doing so.

In the United States, collection agencies recover approximately $45 billion in unpaid debts annually.

This serves as a reminder of the importance of debt collection in helping to ensure that creditors are able to recoup their losses and that debtors are held accountable for their financial obligations.

The average age of individuals with debts in collection is 40 years old.

Debt collection is not just an issue for the elderly, but is a problem that affects people of all ages. This statistic is a reminder that debt collection is a problem that affects people of all ages, and that it is important to be aware of the potential consequences of taking on debt.

Debt collectors recover approximately 15-20% of delinquent debt, with the remaining 80-85% considered uncollectible.

This reveals the success rate of debt collectors in recovering delinquent debt. It highlights the fact that the majority of debt is uncollectible, and that debt collectors must be strategic in their approach to ensure the highest possible rate of recovery.

The average balance for an individual in debt collection is around $5,178.

Debt collection can place on individuals. It highlights the reality that many people are struggling to pay off their debts, and that debt collection is a serious issue that needs to be addressed.

Conclusion

Overall, the debt collection industry is a large and growing industry that is expected to continue to grow in the coming years. The industry is highly regulated, and there are a number of laws and regulations that must be followed in order to protect consumers from unfair practices.

As the industry continues to grow, it is important for consumers to be aware of their rights and to understand the laws and regulations that govern the industry. By understanding the industry, consumers can protect themselves from unfair practices and ensure that their rights are not violated.

References

1 - https://callminer.com/blog/state-debt-collection-2018-industry-statistics-trends-collection-practices

2 - https://www.statista.com/statistics/500814/debt-owned-by-consumers-usa-by-type/

3 - https://www.acainternational.org/news/new-report-shows-impacts-of-covid-on-debt-collection-transunion-aite-group-research/

4 - https://www.prnewswire.com/news-releases/more-than-50-of-debt-collection-agencies-thrived-under-covid-19-301093042.html

5 - https://www.singlecare.com/blog/medical-debt-statistics/#:~:text=About%2019.5%25%20of%20consumer%20credit%20reports%20include%20one,with%20debts%20in%20collection%20have%20only%20medical%20debts.

6 - https://www.nytimes.com/2021/07/20/upshot/medical-debt-americans-medicaid.html#:~:text=Using%2010%20percent%20of%20all%20credit%20reports%20from,source%20of%20debt%20that%20Americans%20owe%20collections%20agencies.

7 - https://www.ibisworld.com/industry-statistics/employment/debt-collection-agencies-united-states/

8 - https://www.statista.com/statistics/829203/debt-collected-collection-agencies-by-firm-size-usa/

9 - https://www.statista.com/topics/10449/personal-debt-in-the-uk/

10 - https://www.statista.com/topics/1203/personal-debt/#topicOverview

11 - https://www.wallstreetprep.com

12 - https://www.nerdwallet.com

13 - https://www.statista.com

14 - https://www.chartiq.com

15 - https://www.grandviewresearch.com

16 - https://www.newyorkfed.org

17 - https://www.urban.org

Srive - Debt Collection Industry Statistics