Facts and Statistics About Third-Party Debt Collection

[veracious]

In 2010, agencies recovered nearly $54.9 billion in total debt, on which they earned $10.3 billion in commissions. Removing commission amounts from the total debt recovered leaves more than $44.6 billion in debt that agencies returned on a commission basis to creditors and the U.S. economy. (Source: The Impact of Third-Party Debt Collection on the National and State Economies, February 2012.)

There are approximately 6,500 collection agencies operating the United States. (Source: MarketData Enterprises, U.S. Collection Agencies: An Industry Analysis, October 2009.)

http://www.acainternational.org/products-collections-information-5431.aspx

[pipeguy]

Considering the source, I think those are selective stats (the whole article).

I know insidearm (another debt collectors industry site) publishes similar stats. Although the stats might be true as stated, but a look at the SEC annual reports for publicly traded debt collector companies show a cost basis for buying debt at 3.3 to 9 cents on the face value is a interesting one, along with increased profits and multi-million dollar fines. "Commissioned" debt collection is sublet by both OCs ans CAs, typically at 25% to 40% of amount collected (someone else makes the rest, the return to the OC is more like 3.3 to 9%).

The Missouri BBB put out a major report on debt collectors (end of 2011), MA just enacted new laws, OK is in the process of passing a major new law and the CFPB has stated they intend to supervise the large players in the debt collector trade - I won't paint the whole industry with the same brush, but these are not angles of mercy. Trade groups for any industry spin the stats to their benefit, believe me alcohol, tobacco and porn all spin their good stats.

Just my 2 cents....