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1.4.6.1 Length of Placement

The CFPB’s survey of credit card issuers found that creditors place credit card accounts with a collection agency for a specific length of time, that the length of time ranges “from several weeks to several years,” and that the length of placement tends to increase with the age of the debt.273

Respondents to the CFPB’s 2016 survey of third-party collectors indicated that larger creditors typically place accounts with collection agencies for a period of six months to a year, after which the accounts are returned to the creditor who may place the account with a new collection agency.274 Smaller clients, however, are more likely to leave accounts with a client “indefinitely or until the statute of limitations for filing a lawsuit expires.”275

Footnotes

  • 273 Consumer Fin. Protection Bur., The Consumer Credit Card Market 245 (Dec. 2015).

  • 274 Consumer Fin. Protection Bur., Study of third-party debt collection operations 13 (July 2016).

  • 275 Id.