Debt Collection Industry

15330 Words Dec 23rd, 2012 62 Pages
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DebtCollectionAgenciesintheUS October 2012

Paying off: Debtors had trouble paying out, but the recovery will return balance to the industry

IBISWorld Industry Report 56144

Debt Collection
Agencies in the US
October2012

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2 AboutthisIndustry

18 International Trade

36 KeyStatistics

2

Industry Definition

19 Business Locations

36 Industry Data

2

Main Activities

2

Similar Industries

21 CompetitiveLandscape

2

Additional Resources

21 Market Share Concentration

36 Annual Change

21 Key Success Factors

4 IndustryataGlance

36 Key Ratios

37 Jargon&Glossary

22 Cost Structure Benchmarks
23 Basis of Competition

5 IndustryPerformance

24 Barriers to Entry

5

Executive Summary
…show more content…
5
SOURCE: WWW.IBISWORLD.COM
SOURCE: WWW.IBISWORLD.COM

IndustryStructure

Life Cycle Stage
Revenue Volatility
Capital Intensity

Mature

Regulation Level

Medium

Low

Technology Change

Medium

Low

Barriers to Entry

Low

Industry Globalization

Low

Industry Assistance

None

Concentration Level

Low

FOR ADDITIONAL STATISTICS AND TIME SERIES SEE THE APPENDIX ON PAGE 36

Competition Level

Medium

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DebtCollectionAgenciesintheUS October 2012

IndustryPerformance

ExecutiveSummary | KeyExternalDrivers | CurrentPerformance
IndustryOutlook | LifeCycleStage
Executive
Summary

The rising tide of US debt swamped the economy in 2008. As defaults escalated, credit markets froze, and the recession ensued. Typically, the Debt Collection
Agencies industry benefits from this scenario because the rise in default rates produces a spike in debt collection opportunities. But the depth of the recession produced another outcome:
The increase in debt collection opportunities was offset by a fall in collectability rates. In other words, the total value of outstanding delinquent debt overwhelmed the percentage of

A
 s collections from legal, government and healthcare firms rise, demand will return delinquent accounts actually collected.
As such, industry revenue is expected to decline at an annualized rate of 1.1% in the five years to 2012 to $12.6 billion.
Before the recession, the

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