The Debt Collection industry typically thrives when the economy is weak, as this can lead to households defaulting on loans and trigger a rise in business bankruptcies. Strong economic conditions, however, can have the opposite effect on the industry. This is due to efforts by households and businesses to pay down debt and boost savings, and the tightening of lending practices, which result in better loans with less likelihood of default. Industry revenue is projected to display strong growth of 4.7% during 2015-16, due to higher unemployment levels and increased household debt as a proportion of assets.
Debt collection firms retrieve debt payments from individuals and businesses that have failed to meet the terms and conditions outlined by their loan agreements. A firm can act as an agent on behalf of a creditor, for which the firm receives a fee or percentage of the total amount collected. Alternatively, firms can purchase bad debt from the original creditors at a discount on 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.
