𝗪𝗲 𝗱𝗲𝗹𝗶𝘃𝗲𝗿 𝗿𝗲𝘀𝘂𝗹𝘁𝘀 -
Fair Capital's collection rate is currently 𝟱𝟯.𝟮𝟮% higher than the American Collectors Association average.
(:Americn Collectors Association Survey)
What is the average collection rate for a collection agency?
"What success rate should be expected from a debt collection agency" is one of the most basic questions a business will ask before hiring a collection agency. Because it's the recovery rate that’s really important when choosing a collection agency.
In the debt collection industry, liquidation, recovery, or success rate; all refer to a debt collection agency's ability to recover past-due debt on an annual basis.
The ACA International reported on it's 2014 benchmarking survey an industry-wide average success rate of 21.7%
The average debt collection success rate has ranged from 16% to 22% over the last decade. In 2014 the ACA reported a liquidation rate of 21.7%, 2012 - 16.5% in 2010 - 11.7%, 2008 - 13.8% and 2006 - 16.2%
Industry liquidation rates by the year
Liquidation rates by industry
The survey calculated the liquidation rate by dividing a collection agency's gross amount collected during a 12-month period by the amount of new business placed over the 12 month period. The survey did not track the recovery of an individual account over the life of the account.
There are many factors that will affect a collection agency's success rates, but perhaps the most notable is time. Across the industry, the likelihood of write-off increases by approximately 1% with every passing week after the past-due date. Simply put, the recovery rate of accounts that are past due for longer than 6 months statistically drops in half. That likelihood drops to only about 25% after 12 months.
At Fair Capital w𝗲 𝗱𝗲𝗹𝗶𝘃𝗲𝗿 𝗿𝗲𝘀𝘂𝗹𝘁𝘀 - our collection rate is currently 𝟱𝟯.𝟮𝟮% higher than the American Collectors Association average.
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