$20.7bn
$XX.Xbn
140k
6,305
$X.Xbn
Debt collection agencies have successfully recovered from COVID-19 moratorium policies. The rise in aggregate household debt and per capita disposable income has led to higher collection rates, while low interest rates have encouraged borrowing, contributing to a robust rebound. The unemployment rate, which experienced a positive turnaround in 2021 and 2022, has contributed to exceptional revenue growth not seen in many years. And despite the new Consumer Financial Protection Bureau (CFPB) regulations effective 2021, it is expected that revenue will have grown at a CAGR of 2.2% to reach $20.9 billion by the end of 2023, a 2.4% rally in 2023 alone, with profit reaching 13.1% of revenue.
Industry revenue has grown at a CAGR of 0.9 % over the past five years, to reach an estimated $20.7bn in 2024.
Market size is projected to grow over the next five years.
Company | Market Share (%)
2024 | Revenue ($m)
2024 | Profit ($m)
2024 | Profit Margin (%)
2024 |
---|---|---|---|---|
Alorica Inc. | 1,240.6 | 313.4 | 25.3 | |
Encore Capital Group, Inc. | 1,186.8 | 380.3 | 32.0 | |
GC Services Limited Partnership | 298.9 | 45.4 | 15.2 |
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Industry revenue is measured across several distinct product and services lines, including Contingency collections services by letter and email, Other contingency collections services and Early-out receivables services. Contingency collections services by letter and email is the largest segment of the Debt Collection Agencies in the US.
Management and communications technology support improving contingency collection services
The Debt Collection Agencies industry comprises businesses that pursue payments on debts owed by individuals and companies. Most collection agencies operate as agents of creditors and render their services for a fee or percentage of the total amount owed. Other agencies purchase debt portfolios from creditors at a discount and then pursue outstanding balances for their gain.
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NAICS 56144 - Debt Collection Agencies in the US
Get an indication of the industry's health through historical, current and forward-looking trends in the performance indicators that make or break businesses.
Debt collection agencies experienced dramatic revenue recovery post-COVID-19 despite regulation and government actions that attempted to help consumers and businesses handle f...
Learn about an industry's products and services, markets and trends in international trade.
Social media is another tool for debt collectors. As companies look to bring debt collection services in-house, start-ups need various tools to boost performance.
Discover where business activity is most concentrated in an industry and the factors driving these trends to find opportunities and conduct regional benchmarking.
Debt collection agencies are concentrated in the most populous states, such as California since workers need to be located where their services are in greater demand.
Get data and insights on what's driving competition in an industry and the challenges industry operators and new entrants may face, with analysis built around Porter's Five Forces framework.
Technology brings substitutes and enhanced buyer power. Large buyers can adopt accounts receivable software, bringing the debt collection activity in-house, which places pric...
Learn about the performance of the top companies in the industry.
State-of-the-art software and hardware are employed by the top two companies in the industry. Alorica announced a strategic partnership with Talkdesk Inc. Encore acquired a c...
Understand the demographic, economic and regulatory factors that shape how businesses in an industry perform.
COVID-19 spurred government policy and regulation and significantly impacted debt collections and revenue. The moratorium on student loans and the shutdown of the economy red...
View average costs for industry operators and compare financial data against an industry's financial benchmarks over time.
Larger agencies can make capital investments that reduce costs and spread the fixed costs over a larger pool of collections to secure higher profit margins.
Including values and annual change:
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Key data sources in the US include:
Analysts also use industry specific sources to complement catch-all sources, although their perspective may focus on a particular organization or representative body, rather than a clear overview of all industry operations. However, when balanced against other perspectives, industry-specific sources provide insights into industry trends.
These sources include:
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The market size of the Debt Collection Agencies in the US industry in United States is $20.7bn in 2024.
There are 6,305 businesses in the Debt Collection Agencies in the US industry in United States, which has declined at a CAGR of 1.5 % between 2019 and 2024.
The market size of the Debt Collection Agencies in the US industry in United States has been growing at a CAGR of 0.9 % between 2019 and 2024.
Over the next five years, the Debt Collection Agencies in the US industry in United States is expected to grow.
The biggest companies operating in the Debt Collection Agencies market in United States are Alorica Inc., Encore Capital Group, Inc. and GC Services Limited Partnership
Contingency collections services by letter and mail and Other contingency collection services are part of the Debt Collection Agencies in the US industry.
The company holding the most market share in United States is Alorica Inc..
The level of competition is moderate and increasing in the Debt Collection Agencies in the US industry in United States.