Are debt collection agencies truly acyclical and crisis-proof?

This paper examines the resilience of debt collection agencies during economic downturns and financial crises, challenging the notion that the industry is acyclical. The motivation stems from a gap in academic literature assessing how economic cycles impact debt collectors’ financial performance. Using a combination of case study analysis and statistical methods, the study evaluates the financial results and stock returns of 13 publicly listed debt collection companies over two major crises: the 2007–2009 financial crisis and the COVID-19 pandemic. Findings reveal that while the industry slows during crises, it is not immune. The contribution lies in providing new insights into the cyclical vulnerability of this under-researched sector.