Biggest Debt Collection Agencies to Watch in 2025
The largest debt collection agencies include TSI, Midland Credit Management, Portfolio Recovery Associates, and LVNV Funding. Many of these companies have faced legal action for violating consumer protection laws. You can protect yourself by demanding debt validation and responding to lawsuits quickly.
Answer Your LawsuitDebt collection agencies have a reputation for pushing consumers around. These companies often pursue debts aggressively, using letters and phone calls to collect money. You don’t get to choose which agency handles your account. When your debt lands with a collector, you might not recognize their name.
Understanding who these major collectors are helps you prepare. You can protect yourself better when you know what you’re facing. We’ve identified the largest debt collection agencies operating today.
Stop Debt Collectors From Winning a Default Judgment
TSI, Midland, and other major collectors file thousands of lawsuits every year. Don't let them win automatically. File your Answer today and protect your rights.
Respond to LawsuitHere are four of the biggest debt collection agencies in the United States.
Transworld Systems, Inc (TSI)
Transworld Systems, Inc ranks as the largest debt collection agency in America. The company operates 28 locations and has collected debts for over 50 years. TSI has serviced more than $20 billion in consumer debts. In 2020 alone, they collected $725 million from consumers and businesses.
New York sued TSI in 2020 for violating federal and state consumer laws. The state accused the company of using misleading and deceptive statements. TSI settled the case for $600,000 and agreed to specific reforms. The company must now dismiss all debt lawsuits outside the statute of limitations.
The Better Business Bureau does not accredit TSI. Hundreds of complaints appear on the company’s BBB profile. Consumers report aggressive collection tactics and questionable practices.
If TSI is suing you, don’t ignore the lawsuit. You need to respond with an Answer to avoid a default judgment. Our partner Solo can help you file your response properly.
Midland Credit Management
Midland Credit Management has operated for over 65 years. The company maintains support throughout all 50 states. Midland is a subsidiary of Encore Capital Group and holds accreditation through ACA International. They maintain relationships with several large banks and credit institutions.
The Consumer Financial Protection Bureau took action against Midland in 2020. The CFPB found that Midland sued customers without proper documentation. The company also filed lawsuits on time-barred debts. Midland paid $79,000 in redress and a $15 million civil penalty to settle.
The BBB does not accredit Midland Credit Management. Hundreds of consumers have filed complaints against the organization in recent years. Common complaints include improper documentation and aggressive collection tactics.
Portfolio Recovery Associates
Portfolio Recovery Associates has offices in multiple states. The company launched in 1996, making it younger than TSI or Midland. Portfolio Recovery services many large banks, creditors, and retailers. The company holds accreditation with ACA International.
The CFPB won a significant action against Portfolio Recovery in March 2023. The agency found violations of the Consumer Financial Protection Act. Portfolio Recovery also violated the Fair Credit Reporting Act and Fair Debt Collection Practices Act. The company paid $12 million in redress and $12 million in civil penalties.
Portfolio Recovery Associates has no BBB accreditation. Over 1,877 people filed complaints against the company in the past three years. Consumers report various violations and improper collection practices.
LVNV Funding
LVNV Funding purchases old debts and outsources collection work. Partner companies handle the actual collection process. These partners include Resurgent Capital Services, Alegis Group, and Pinnacle Financial Group. Sherman Financial Group owns LVNV Funding.
LVNV Funding is an accredited business with the BBB. The company currently holds an A+ rating. Despite this rating, hundreds of people have filed complaints against LVNV. Consumers report issues with debt validation and credit reporting.
How to Protect Yourself From Debt Collectors
Hundreds of debt collection companies operate across the United States. These agencies purchase consumer debts and pursue payment aggressively. Ignoring a collection agency can lead to a lawsuit.
You must take proactive steps when a collector contacts you. Demand that the agency validate the debt first. The collector must prove you owe the money they claim. They should provide documentation showing their legal right to collect.
If the agency can’t prove the debt, they must stop collection activity. They must also remove any negative items from your credit report. You can file a complaint with the FTC if they continue without proof.
Example: Fighting Back Against Invalid Debt Claims
Georgio receives a collection notice from GLD Collections for $5,000 in credit card debt. He doesn’t recognize GLD Collections or the debt amount. Georgio sends a Debt Validation Letter requesting full proof of the debt. GLD Collections can’t provide supporting evidence and doesn’t respond. Georgio files a dispute with the credit bureaus and provides his validation letter. The bureaus remove the collection item from his credit report.
Never Ignore Collection Notices
Debt collection letters feel frustrating, but ignoring them makes things worse. Collection agencies won’t give up and go away. Make collectors prove you owe the debt before you pay anything. You want to ensure your money goes toward a legitimate obligation.
If a debt collector sues you, you must respond quickly. Our partner Solo helps you file an Answer to protect your rights. Filing an Answer prevents a default judgment against you. You can also negotiate a settlement or dispute the debt in court.
Your Rights Under Federal Law
The Fair Debt Collection Practices Act protects you from abusive collectors. Collectors cannot harass you or use deceptive practices. They must validate debts when you request proof. They cannot call you at work if you tell them to stop.
You have the right to dispute any debt within 30 days. Collectors must stop collection activity until they provide validation. They cannot report unvalidated debts to credit bureaus. Understanding your rights helps you fight back against aggressive collectors.
Document every interaction with debt collectors. Keep copies of all letters and notes from phone calls. Evidence helps you prove violations if you need to file a complaint.