Collection Facts and Figures
Collection Facts and Figures
- There are over 6,000 collection companies nationwide.
- 65-80% of these agencies are traditional percentage agencies, meaning they take a percentage of every collection they make. The average percentage taken is 33 1/3%.
- The ACA (American Collectors Association) tells us that the average collection agency collects 10% of the money owed to its clients.
- The collection industry saves the typical American family $354 a year. This represents money they would have spent if businesses raised their prices to cover losses to bad debt instead of recovering the revenue through a collection agency. (Source: ACA International, May 2004)
- The Fair Debt Collection Practices Act (FDCPA), the primary federal law regulating third–party collection agencies, which was enacted in 1977 with the support of ACA, is designed to help protect consumers from unfair and abusive collection practices. (Source: A Guide to the Fair Debt Collection Practices Act)
- ACA member agencies make nearly 87 million consumer contacts a month, which equates to more than 1 billion contacts per year. (Source: an ACA International study conducted by Ernst & Young)
(Source: http://www.acainternational.org)
