Collections Industry Increasing Communications Channels, Diversifying Areas of Business

CHICAGO, Ill. -- While nearly all (98%) third-party collections companies use letters to reach consumers, just 40% have adopted text or SMS messaging to consumers—compared to 37% that were using text in 2022. However, last year, 34% indicated they would start using text messaging within the coming two years, suggesting economic headwinds have stalled companies’ planned investments in communications technologies. 

The findings were revealed today in the fifth annual industry report by TransUnion (NYSE: TRU) and Datos Insights, “Seizing the Opportunity in Uncertain Times: The Third-Party Collections Industry in 2023.” The report examines overall collections industry trends, challenges and opportunities and is informed by a survey of third-party debt collection professionals.

“One of the most promising opportunities we see for companies is to invest in omnichannel communications,” said Jason Klotch, vice president of third-party collections in TransUnion’s diversified markets business. “Reaching consumers where they are most likely to respond is the key to effective and efficient operations that also better enable regulatory compliance.”