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Preparing for Opportunity: Investing in Efficiency to Scale Operations.

Debt Collection Industry Annual Report

The debt collection industry is experiencing significant changes due to new regulations and economic pressures. To adapt, businesses are focusing on improving their operations and service quality, aiming to enhance the consumer experience.

This shift is leading to the adoption of innovative technologies and communication methods, enabling consumers to take a more self-service approach. With charged-off account volumes on the rise and expected to continue growing in 2025, there are both challenges and exciting opportunities for proactive debt collection companies ready to evolve.

Key findings in TransUnion's latest study include:

  • 59% of consumers planned to apply for a new credit card (the highest intent level TransUnion has ever measured), but 27% expressed concerns about their abilities to fully meet current bill and loan obligations
  • 48% of companies were concerned about data security, representing a 40% increase compared to 2023 survey results
  • More than half (52%) of debt collection companies are making investments in technology, primarily driven by the need to enhance agent production and improve margins
  • Use of email communications (74%) have continued to grow quickly
  • 88% of debt collection companies reported having a self-service online portal
  • Payments online through portal (88%) was the most popular of the newer debt collection methods

Download now to explore the year in more detail.