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New CSBS Paper: Overview of Debt Collection

CSBS has released a new policy paper that describes the U.S. debt collection industry. It includes the history, process and supervision of debt collection in the country. 

The paper, Overview of Debt Collection, is the fifth in a series on reengineering nonbank supervision being developed by CSBS to examine the nonbank financial services industry and how it is supervised. State financial supervisors are the primary regulators of nonbank financial services companies operating in the United States. 

$15.6 Trillion
The amount of US household debt at the end of 2018.

Key Findings:

  • According to the Federal Reserve Board, the amount of US. household debt stood at $15.6 trillion at the end of 2018
  • Student loan debt has increased more than 150% since 2007 to more than $1.6 trillion, replacing credit cards as the highest dollar volume of non-mortgage consumer debt
  • Future trends in debt collection include automation, litigation and consolidation of collectors
  • As of June 2019, more than 1,800 companies held debt collection licenses in 10 states through the National Multistate Licensing System
  • Twelve states and U.S. territories claim jurisdiction over student loan servicing as of December 2019, while another nine states have laws pending 
  • The supervision of debt collectors, debt relief and student loan servicing is an emerging area within the state regulatory system


You can read the latest paper here. Prior papers - Introduction to the Nonbank Industry; An Overview of State Nonbank Supervision; Overview of Nonbank Mortgage; and Overview of Money Services Business - can be found here

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