Therefore, the more debt they recover, the more profit they earn. Under these contracts, debt collection agencies may be paid a substantial percentage of the amount they collect – up to 50 percent, in some instances.
Who is the biggest debt collection agency?
What’s in your wallet? A debt lawsuit. Alorica Inc., Encore Capital Group Inc. and PRA Group Inc are the largest players in debt collection, according to IbisWorld, the market research firm.
How successful are debt collectors?
Debt collection success rate
The average debt collection success rate has ranged from 16% to 22% over the last decade. A survey conducted by the ACA International in 2014 reported a 21.7% average industry-wide success rate.
What percentage do debt collectors take?
The average debt collection fee is typically between 20% to 40%. Several factors will impact how much a collection agency will charge. So, let’s break it down; Age of account — Older debts are generally more complex to collect, so they typically demand higher fees.