Debt Collection Statistics, debt collection companies.#Debt #collection #companies

Debt Collection Statistics

These debt collection statistics and consumer credit statistics illustrate how the collection problems continue to affect millions of Americans.

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Debt Collection Statistics

Debt collection complaints topped the list of consumer complaints received by the FTC in 2015, with 897,655 (29%) complaints received about debt collection.

Source: FTC Annual Summary of Consumer Complaints

Approximately 30 million Americans have at least one debt in collection.

Source: Fed. Reserve Bank of N.Y., Quarterly Report on Household Debt and Credit (Aug. 2014)

a debt not owed.

that originated with a healthcare provider, utility company, or telecommunications company.

Businesses nationwide placed $150 billion worth of debt with collection agencies (in 2010). Agencies were able to collect about $40 billion of that total.

Debt Collection Industry is Booming

  • The Bureau of Labor Statistics (BLS) anticipates that between now and 2106, the debt collection industry will experience a 23% rate of growth, a much faster rate than the average for all industries. According to the BLS, much of the increased demand for debt collection services will come from doctors’ offices, hospitals and government agencies, including the IRS.

Consumer Advocates Are Calling For Debt Collection Reform

Consumer advocates are urging that the federal Fair Debt Collection Practices Act be amended in order to provide consumers with more protections when they are contacted by debt collectors. Among other things for example, they are asking that the law require debt collectors to provide consumers with the following information before they can begin trying to collect a debt:

  • Proof that a consumer actually owes the money that a debt collector wants the consumer to pay
  • The amount of the original debt
  • A breakdown of all interest and fees associated with the debt
  • The name of the original creditor
  • When the original creditor sold the debt to the debt collector, assuming the debt collector purchased the debt

Consumers are also demanding that debt collectors be:

  • Required to actually conduct an investigation when a consumer disputes a debt they are trying to collect
  • Prohibited from reporting a collection account to the credit reporting agencies when a consumer disputes a debt that the debt collectors are trying to collect until the 30-day dispute period is up.
  • Prohibited from reporting debts to credit reporting agencies if a debt collector can’t verify the debt.

Updated February 2009

Consumer Credit and Debt Statistics

According to the May 2009 report issued by the Joint Economic Committee of the U.S. Congress, entitled Vicious Cycle: How Unfair Credit Card Company Practices Are Squeezing Consumers and Undermining the Recovery, May 2009:

  • “As household wealth has declined in the downturn, more American families are facing financial distress due to high debt burdens. In 2007, before the recession began, 14.7 percent of U.S. families had debt exceeding 40 percent of their income.”

Bankruptcy Statistics

U.S. consumer bankruptcy filings totaled 106,255 nationwide during October, a 19.6 percent decrease from the 132,173 total consumer filings recorded in October 2010, according to the American Bankruptcy Institute (ABI), relying on data from the National Bankruptcy Research Center (NBKRC). The October consumer filings also represented a 2 percent decrease from the 108,517 filings in September. Chapter 13 filings constituted 31.5 percent of all consumer cases in October, a slight increase from September.

  • 26 percent of Americans said that they do not pay all of their bills on time. Among African-Americans, this number is 51 percent.
  • Over the last 12 months, 15 percent of American adults were late paying one of their credit cards and

8 percent of them did not make a payment at all.

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