After a disappointing industry performance during the onset of the global financial crisis, the Debt Collection industry has begun to rebound. Over the five years through 2012-13, the industry has experienced improving conditions, despite consumers looking to save more than they spend. The industry has grown by a compound annual rate of 3.4% over the five years through 2012-13. Conditions are improving slower than expected, but increasing consumer confidence and household disposable incomes should result in increased spending. Increased scrutiny towards debt collectors may result in slightly lower revenues as operators engage in less risks.
Debt collection firms retrieve debt payments from delinquent individuals and businesses that have fallen short of the terms and conditions outlined by their loan agreements. A firm can act as an agent on the behalf of a creditor for which the firm receives a fee or percentage of the total amount collected. Alternately, firms purchase 'bad' debt from the original creditors at a discount to its face value.
The report covers the scope, size, disposition and growth of the industry including the key sensitivities and success factors. Also included are five year industry forecast, growth rates and an analysis of the industry key players and their market shares.