Collection Agencies

Collection Agencies

Brief Excerpt from Industry Overview Chapter:

Companies in this industry collect payments for claims on behalf of their clients. Major companies include Alorica, Encore Capital Group, iQor, PRA Group, Rithm Group (all based in the US), as well as First Collect International (UK), Intrum (Sweden), and NTT Finance (Japan).

COMPETITIVE LANDSCAPE

Demand for collections services is driven by the volume of financial transactions and by the health of the economy. The profitability of individual companies depends largely on efficiency of operations. Large companies enjoy economies of scale in their ability to buy receivables portfolios. Small companies can compete successfully by providing superior customer services. The US industry is concentrated: the 50 largest companies account for about 50% of revenue.

PRODUCTS, OPERATIONS & TECHNOLOGY

Leading services handled by collection agencies include individual debt recovery, which accounts for about 85% of the industry revenue, and commercial debt recovery at about 15%. Other services include collateral recovery and repossession as well as call support services.