Recent
estimates by the Bureau of Labor Statistics show employment in the
collection industry
is expected to increase by 35 percent or
more by 2008.
The
average amount of new business placed for collections in 2001 was
$64,026,362 and the
average recovery rate was 18-percent. This is up
from 2000 when the average amount of new
business placed for
collections was $59,766,196 and the average recovery rate was
11-percent.
The
average recovery rate for accounts placed between 30-60 days is 27.55
percent, compared to 13.41 percent for accounts placed beyond 181
days.
The
average number of phone calls a typical collector attempts per hour is
20. A
typical collector will reach six debtors in an hour with at
least two promises.
The
average annual turnover rate for collectors was less than 10-percent
in 2001.
In
general, firms employ more female collectors than they do male
collectors. The
proportions have equalized somewhat since 1999,
however. The proportion of male
to female was 1 to 3 in 1999 and it is
currently 2 to 3.
Contingency
collection activity makes up 58 percent of the total market revenue.
These annual contingency revenues amount to $7.5 billion divided among
six
segments: healthcare, financial services, government and student
loans,
telecommunications and utilities, commercial and other.
More
than 6,500 collection agencies and 1,600 credit reporting agencies
service an
estimated $135 billion in delinquent consumer debt placed
for collection in 2000. This
is nearly double the $73 billion placed
for collection in 1990.
The
auto market has the highest collection recovery rate with 65
percent, while
child support collections has the lowest recovery
rate with only 2 percent.
Consumer
debt is consistent with bankruptcy filings Research by the Federal
Reserve
indicates that household debt is at a record high relative
to disposable income. Some
analysts are concerned that this
unprecedented level of debt might pose a risk to
the financial
health of American households. A high level of indebtedness among
households could lead to increased household delinquencies and
bankruptcies, which
could threaten the health of lenders if loan
losses are greater than anticipated.
