What Percentage of Money Owed Is Typically Recovered by Collection Agencies?

Collection agencies are often used to try to collect money from delinquent accounts when businesses cannot collect it themselves. In most cases, collection agencies are not going to be able to collect the full amount of money that is owed to them. Here are a few things to consider about what percentage of money owed is typically recovered by collection agencies.

Time Is of the Essence

Collection agencies' odds of collecting a debt increase dramatically when they are collecting it sooner. As more time passes, they are not going to be able to collect as big of a percentage of money from delinquent accounts. This means that collection agencies should strive to collect the money as soon as they take over the accounts.


If a collection agency starts working when a debt is only 3 months old, they have a good chance of collecting it. According to some estimates, the collection agency can get as much as 74 percent of the amount of money that is owed to them. After an extended period, these numbers decrease dramatically. If the debt is allowed to go uncollected for more than a year, the number decreases to about 30 percent. 

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