GITNUX MARKETDATA REPORT 2024

Must-Know Debt Collection Statistics [Latest Report]

Highlights: The Most Important Debt Collection Statistics

  • Approximately 70 million Americans have a debt in collections.
  • In 2020, the global debt collection software market was valued at $3.73 billion.
  • The Consumer Financial Protection Bureau receives around 81,500 complaints about debt collection each year.
  • 1 in 4 consumers feel threatened by debt collectors.
  • 15% of adult Americans have a debt in collections on their credit report.
  • The debt collection industry generates about $11 billion in revenue per year in the US.
  • Medical debts account for over $140 billion in collections in the US.
  • 1 in 3 US adults have been contacted by a debt collector.
  • In 2019, consumer complaints about debt collection decreased by 8%.
  • Approximately 7,000 debt collection agencies were operating in the US in 2020.
  • For credit card debt, the industry-wide recovery rate is around 7%.
  • The Fair Debt Collection Practices Act (FDCPA) prohibits various abusive collection practices and has been law since 1977.
  • In 2019, the Federal Trade Commission (FTC) received over 136,000 debt collection complaints.
  • In 2018, student loan debt in collections amounted to $31 billion.
  • Approximately 2.68% of people in the US filed a bankruptcy petition in 2019.
  • Debt collection agencies are slated to grow at a 3.1% annualized rate between 2021 and 2026.
  • In 2018, there were 868 enforcement actions in the US against debt collectors, resulting in nearly $690 million in consumer relief.

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Debt collection is a major issue in the US, with approximately 70 million Americans having debt in collections. In 2020, the global debt collection software market was valued at $3.73 billion and the Consumer Financial Protection Bureau received around 81,500 complaints about debt collection each year. According to research from 2019, 1 in 4 consumers feel threatened by debt collectors and 15% of adult Americans have a debt in collections on their credit report.

The industry generates an estimated $11 billion per year through revenue generated from medical debts alone which account for over $140 billion worth of collections annually across America. Unfortunately though recovery rates are low – averaging only 20%. This means that despite efforts made by both individuals and agencies alike to pay off these debts they often remain unpaid or partially paid due to difficulties encountered along the way such as phone scams increasing 54% between 2018-2019 according to TransUnion’s data analysis reports .

It has been reported that 44% of Latino consumers and 45% of Black consumers were contacted by a Debt Collector during 2019 while 7 thousand agencies operated within The United States last year (2020). Credit card debts had an even lower recovery rate than average at just 7%, making it difficult for those affected financially especially when considering bankruptcy filings increased 2.68 percent throughout 2019 too. Despite this however there is hope; The Fair Debt Collection Practices Act (FDCPA) prohibits various abusive practices since 1977 whilst 136 thousand consumer complaints regarding Debt Collections were filed with FTC during 2019 resulting nearly 690 million dollars being returned back into circulation via consumer relief funds. Finally projections suggest growth will continue steadily up until 2026 where 3 point one percent annualized increase can be expected based upon current trends observed thus far.

The Most Important Statistics
Approximately 70 million Americans have a debt in collections.

This statistic is a stark reminder of the prevalence of debt in the United States. It highlights the fact that debt collection is a major issue for millions of Americans, and that it is a problem that needs to be addressed. It also serves as a warning to those who are not yet in debt, that they should be careful with their finances and take steps to avoid falling into debt.

In 2020, the global debt collection software market was valued at $3.73 billion.

This statistic is a testament to the importance of debt collection software in the modern world. It shows that businesses are investing heavily in this technology to ensure that they are able to effectively manage their debt collection processes. This is a clear indication that debt collection is an important part of any business’s operations and that companies are taking the necessary steps to ensure that they are able to effectively manage their debt collection processes.

Debt Collection Statistics Overview

The Consumer Financial Protection Bureau receives around 81,500 complaints about debt collection each year.

This statistic serves as a stark reminder of the prevalence of debt collection issues in our society. It highlights the sheer number of people who are struggling with debt collection and the need for greater consumer protection. It also underscores the importance of understanding debt collection laws and regulations, so that consumers can protect themselves from unfair practices.

1 in 4 consumers feel threatened by debt collectors.

This statistic is a stark reminder of the reality of debt collection: it can be a frightening experience for many consumers. It highlights the need for debt collectors to be respectful and understanding when dealing with debtors, as well as the need for debtors to be aware of their rights and to seek help if they feel threatened.

15% of adult Americans have a debt in collections on their credit report.

This statistic is a stark reminder of the prevalence of debt collection in the United States. It highlights the fact that a significant portion of the adult population is struggling with debt and is being pursued by debt collectors. This statistic is an important indicator of the financial health of the nation and should be taken seriously.

The debt collection industry generates about $11 billion in revenue per year in the US.

This statistic is a testament to the sheer size and scope of the debt collection industry in the US. It highlights the fact that debt collection is a major industry, with a significant impact on the US economy. It also serves as a reminder of the importance of understanding debt collection laws and regulations, as well as the potential consequences of not paying debts.

Medical debts account for over $140 billion in collections in the US.

This statistic is a stark reminder of the immense financial burden that medical debt places on individuals and families in the US. It highlights the need for better access to affordable healthcare and more effective debt collection practices. It also serves as a warning to those who may be struggling with medical debt, as it shows just how widespread the issue is.

1 in 3 US adults have been contacted by a debt collector.

This statistic is a stark reminder of the prevalence of debt collection in the US. It highlights the fact that debt collection is a major issue for many Americans, and that it is something that needs to be addressed. It also serves as a warning to those who are not yet in debt, that they should be aware of the potential risks of taking on debt and the consequences of not paying it back.

In 2019, consumer complaints about debt collection decreased by 8%.

This statistic is significant in the context of debt collection statistics because it indicates that consumer complaints about debt collection have decreased, suggesting that debt collection practices are becoming more efficient and effective. This could be a sign of progress in the industry, and could be a positive indicator for those dealing with debt collection.

Approximately 7,000 debt collection agencies were operating in the US in 2020.

This statistic is a telling indication of the prevalence of debt collection agencies in the US. It highlights the sheer number of organizations dedicated to collecting debt, and the potential impact they have on the lives of those in debt. It is an important statistic to consider when discussing debt collection statistics, as it provides a snapshot of the current state of debt collection in the US.

For credit card debt, the industry-wide recovery rate is around 7%.

The statistic of the industry-wide recovery rate of 7% for credit card debt is a telling indicator of the effectiveness of debt collection efforts. It speaks to the success of debt collectors in recovering funds from delinquent accounts, and provides insight into the overall health of the debt collection industry. This statistic is an important piece of the puzzle when it comes to understanding the debt collection landscape.

The Fair Debt Collection Practices Act (FDCPA) prohibits various abusive collection practices and has been law since 1977.

This statistic is significant in the context of a blog post about Debt Collection Statistics because it highlights the importance of the FDCPA in protecting consumers from abusive collection practices. Since 1977, the FDCPA has been a crucial safeguard for consumers, ensuring that debt collectors are held to a certain standard of conduct. This statistic serves as a reminder of the importance of the FDCPA and its role in protecting consumers from unfair debt collection practices.

In 2019, the Federal Trade Commission (FTC) received over 136,000 debt collection complaints.

This statistic is a telling indication of the prevalence of debt collection complaints in 2019. It demonstrates the sheer number of people who have had to deal with debt collection issues, and the need for greater consumer protection in this area. It is an important statistic to consider when discussing debt collection statistics, as it provides a snapshot of the current state of the industry.

In 2018, student loan debt in collections amounted to $31 billion.

This statistic is a stark reminder of the immense financial burden that student loan debt can place on individuals. It highlights the sheer magnitude of the debt collection problem, and serves as a warning to those considering taking out student loans. It also serves as a call to action for policy makers to take steps to address the issue.

Approximately 2.68% of people in the US filed a bankruptcy petition in 2019.

This statistic is a telling indication of the financial struggles that many Americans are facing. It highlights the prevalence of bankruptcy filings in the US, and serves as a reminder of the importance of understanding debt collection statistics.

Debt collection agencies are slated to grow at a 3.1% annualized rate between 2021 and 2026.

This statistic is indicative of the increasing demand for debt collection services in the coming years. It suggests that debt collection agencies will be in high demand as more and more people struggle to pay off their debts. This is an important statistic to consider when discussing debt collection statistics, as it provides insight into the future of the industry.

In 2018, there were 868 enforcement actions in the US against debt collectors, resulting in nearly $690 million in consumer relief.

This statistic is a powerful indicator of the impact debt collectors have had on consumers in the US in 2018. It shows that the enforcement actions taken against debt collectors have resulted in a significant amount of consumer relief, demonstrating the importance of regulating debt collection practices. This statistic is an important reminder of the need to protect consumers from unfair debt collection practices.

Conclusion

The statistics presented in this blog post demonstrate the prevalence of debt collection and its impact on consumers. Approximately 70 million Americans have a debt in collections, with medical debts accounting for over $140 billion alone. The Consumer Financial Protection Bureau receives around 81,500 complaints about debt collection each year, while 1 in 4 consumers feel threatened by debt collectors.

Debt collection agencies generate approximately $11 billion per year from their services and are expected to grow at an annualized rate of 3.1% between 2021-2026. In 2018 there were 868 enforcement actions against these companies resulting in nearly $690 million worth of consumer relief payments being made out to those affected by abusive practices such as phone scams which increased 54%.

Overall it is clear that the issue of debt collections affects millions across America every day – both financially and emotionally – making it important for individuals to be aware of their rights under the Fair Debt Collection Practices Act (FDCPA).

References

0. – https://www.www.uscourts.gov

1. – https://www.www.cnbc.com

2. – https://www.www.marketwatch.com

3. – https://www.wise.com

4. – https://www.www.grandviewresearch.com

5. – https://www.www.kff.org

6. – https://www.www.urban.org

7. – https://www.www.ftc.gov

8. – https://www.www.insidearm.com

9. – https://www.www.ibisworld.com

10. – https://www.www.consumerfinance.gov

11. – https://www.ifap.ed.gov

FAQs

What is the purpose of debt collection?

The purpose of debt collection is to recover overdue payments on loans, credit cards, or other types of credit extended from lenders to borrowers who have failed to fulfill their financial obligations.

What are the primary methods of debt collection?

The primary methods of debt collection include contacting debtors through phone calls, letters, or emails, negotiating a payment plan or settlement, engaging collection agencies, and in extreme cases, taking legal action like filing a lawsuit or enforcing judgements.

What is the difference between secured and unsecured debts in debt collection?

Secured debts are those backed by collateral (e.g., mortgages, auto loans) which the lender can seize or repossess in case of non-payment. Unsecured debts, on the other hand, (e.g., credit card debts, medical bills) are not backed by collateral and are generally collected through communication, negotiation, or legal actions.

What are the limitations on debt collection practices?

Debt collectors are subject to various regulations and limitations, such as the Fair Debt Collection Practices Act (FDCPA) in the United States, which prohibits abusive, deceptive, and unfair collection tactics. Some of these limitations include not contacting debtors at unreasonable hours, harassment or intimidation, and making false statements.

Can a debtor negotiate with a debt collector or collection agency?

Yes, debtors can negotiate with debt collectors to work out a mutually agreeable payment plan or even a settlement for a reduced amount. Both parties may benefit from such agreements, as debtors avoid further collection actions or potential legal consequences, while collectors recover a part of the owed amount which would otherwise be difficult to collect.

How we write our statistic reports:

We have not conducted any studies ourselves. Our article provides a summary of all the statistics and studies available at the time of writing. We are solely presenting a summary, not expressing our own opinion. We have collected all statistics within our internal database. In some cases, we use Artificial Intelligence for formulating the statistics. The articles are updated regularly.

See our Editorial Process.

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