| SIC Codes: | 7322 |
| NAICS Codes: | 561440 |
Companies in this industry collect payments for claims on behalf of their clients. Major companies include Asset Acceptance Capital, GC Services, and NCO Group.
Demand for collections services is driven by the volume of financial transactions and by the health of the economy. The profitability of individual companies depends largely on efficiency of operations. Large companies enjoy economies of scale in their ability to buy receivables portfolios. Small companies can compete successfully by providing superior customer service. The industry is fragmented: the 50 largest companies account for less than 50 percent of revenue.
Collection agencies attempt to recover money from individuals and businesses that are delinquent in making payments on debt. Collections (also called receivables management) mainly involves credit card debt, which makes up about half of all receivables. Other receivables include auto loans, utilities, child support, bounced checks, student loans, and uninsured health care costs.