Collecting Debts in the U.S. Market: The Economics of Foreign Call Centers

FOR IMMEDIATE RELEASE
New YORK ,New Jersey, Connecticut, New York, United States of America (Free-Press-Release.com) September 15, 2010 -- I read an article written by Mark Magnier of the LA Times titled, “As U.S. fortunes fade, Pakistani debt collectors dial it up a notch.” LA Times article (http://articles.latimes.com/2009/sep/15/world/fg-pakistan-call-center15)

An interesting follow-up article would be the economics of foreign debt collections. Some time ago, I was solicited by an overseas call center. The primary selling point was that they could put 4 to 5 collectors on the phone for $12 an hour. Put another way, they are billing $2.35 –to- $3.00 an hour per collector, and making a profit doing so. U.S. based entry level collectors earn $8 to $15 an hour (some with commission incentives, some without) + benefits, and high end collectors can earn a base salary that is solid middle income or higher + benefits + commission incentives.

Foreign collectors produce much lower results than U.S. collectors, but because of the reduced labor costs (salary, benefits etc.), subcontracting to foreign call centers is often more profitable to the U.S. based collection agency (not its clients). Many collection agencies are willing to sacrifice results and U.S. based employment for a potentially larger profit.

These same agencies do not typically extend cost savings to their clients (as do manufacturers to their customers.) In the collection field, if the agency is working for a creditor (didn’t buy a receivables package), there is no benefit to the client. In fact, going overseas costs the creditor in reduced results.

As it pertains to consumer collections (we do commercial), personal data is outside of the U.S. security controls. We don’t know if the call centers are able to protect the data.

Greed is an amazing drug. People will sell out their country for a larger profit.

Bottom Line Collection Service Method:
Our objectives are less profit-driven and more economic driven.

We created our company around the concept that in a recession, smart management will recognize the value we offer, and will want to build a relationship accordingly. Our service is designed to cut your costs while also making a profit for us.

Keep your business in the U.S., work with us.

If you have questions, E-Mail us at: scott@BottomLineCollections.com

See our website: http://www.BottomLineCollections.com

Scott Roberts
Bottom Line Collection Services

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