Number of Consumers with an Account in Collection Grows

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Patrick Lunsford July 25, 2012 8 Responses http://www.insidearm.com/daily/debt-collection-news/debt-collection/number-of-consumers-with-an-account-in-collection-grows/

The percentage of Americans with at least one account actively in the third party debt collection process increased over the first six months of 2012, according to data released by a consumer help site.

Bills.com reported this week that 11 percent of its users have an account that is being worked by a collection agency, an increase from the previous six months.

The average balance of accounts in collection also increased 17 percent to $1,100.

The data released by Bills.com reflects only the situations of consumers using its Debt Coach tool. But other data sources also show an increase in debt collection accounts.

The Federal Reserve Bank of New York reported in May that in the first quarter of 2012, 14.26 percent of consumers had an account with a third party debt collector, up from 13.95 percent in the first quarter of 2011. The average account balance for loans in collection reported by the Fed was $1,497, up significantly from the $1,386 reported in the previous year.