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 debt recovery and collection services, which account for 50% of the industry revenue and individual debt recovery at more than 40%. Commercial debt recovery accounts for about 10% of the industry revenue. Other services include collateral recover and repossession as well as call support services.