Wednesday, April 30, 2008

Now, US outsourcing debt collection to India


Now debt collectors will become even more anonymous.

You can, if able to afford it, always take a holiday in India and look up the source of the fucking telephone calls you get at all hours.

Bear in mind, debt collections take place for some debts which are disputed, but just try arguing your case with someone in India.

Meanwhile, postpone paying up as long as possible because its only a matter of time until the money you give them will be worthless anyway.
US debt collection agencies are the newest to start outsourcing their work to India and are satisfied with the results produced by the polite but persistent Indian callers. After insurance claims and credit card sales, debt collection is a growing business for outsourcing companies at a time of downturn in the US economy when consumers struggle to pay for their purchases, The New York Times reported Thursday.

Debt collectors in India may cost as little as one-quarter the price of their US counterparts and are often better at the job, debt collection company executives say.

“India will be the only place we grow this year,” said J. Brandon Black, chief executive of the Encore Capital Group, a San Diego based debt collection company.

The company has half its collection force of more than 300 in India, including at a Gurgaon call centre.

Credit card, auto and other debt are prime candidates for collection overseas but mortgage loans, which involve complex state and national laws, are almost always handled by agents within the US.

Delinquent consumer debt up for collection in the US amounted to $141 billion in 2005, as estimated by PriceWaterhouseCoopers. Debt collection agencies collected $51 billion that year, keeping almost a quarter of that in profits [emphasis mine}.

So why not just cut out the middle men/women? Tell the debtors they can settle for 75¢ on the dollar. Make it a one time offer to stimulate the economy. Muhahaha.

The headline links to the source.

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