Fair Debt Collection: 1.3.5.2.3 Compensation for collection agencies and individual collectors
The Consumer Financial Protection Bureau’s survey of large credit card issuers found that contingency fees that allow third-party collection agencies to retain a percentage of what they recover were the most common payment structure.279 The average contingency fee was 15.7% in 2020, with a range of 9.5 to 23% with higher fees awarded for accounts that are believed to be more difficult to collect.280 Most issuers also reported paying performance-based incentives.