Repo man is paid in Rupees

garysher · 04-24-2008, 11:54 AM

Debt Collection Done From India Appeals to U.S. Agencies
By HEATHER TIMMONS April 24, 2008

GURGAON, India — In a glass tower on the outskirts of New Delhi, dozens of young Indians are on the telephone, calling America’s out of work, forgetful and debt-stricken and asking for cash.

The Encore Capital Group, a debt collection company based in San Diego, has pep talks for workers at its call center in India.

“Are you sure that’s all you can afford?” one operator in a row of cubicles asks politely. “Well, how do you take care of your everyday expenses?” presses another.

Americans are used to receiving calls from India for insurance claims and credit card sales. But debt collection represents a growing business for outsourcing companies, especially as the American economy slows and its consumers struggle to pay for their purchases.

Armed with a sophisticated automated system that dials tens of thousands of Americans every hour, and puts confidential information like Social Security numbers, addresses and credit history at operators’ fingertips, this new breed of collectors is chasing down late car payments, overdue credit card debt and lapsed installment loans. Debt collectors in India often cost about one-quarter the price of their American counterparts, and are often better at the job, debt collection company executives say.

Although the stereotype of a collector may be “some guy with chains and a cut-off shirt,” Mr. Black said, << DOES THIS SOUND LIKE FX??>> collectors in India are “very polite, very respectful, and they don’t raise their voice.” He added, “People respond to that.”

Companies like Encore buy bad loans from banks and credit card issuers for pennies on the dollar and pocket the cash they collect. The delinquent borrowers often owe at least a thousand dollars.

In the past, the prevailing wisdom about wringing money from late payers has been “if you’re calling the Midwest, you want someone from the Midwest to twist their arm,” said Mark Hughes, an analyst with Sun Trust Robinson Humphrey who covers the industry. That theory is changing as the pool of trained phone professionals in India and other locations deepens, and companies look outside the United States for lower costs.

Telephone debt collection represents new, more aggressive territory for India. “This is really a sales job,” Mr. Hughes said. “It is commission-intensive, and you’re paid on your ability to collect.”

Like many sales teams, Encore’s collectors in India gather for a daily pep talk before their shift. In one recent session, they were schooled on the intricacies of American tax policy.

“One hundred thirty million U.S. families will get a tax rebate this season” as part of the new economic stimulus package, Manu Sharma, the team leader, explained to a roomful of top-earning collection agents, most in their 20s. Those who qualify for the rebates will get as much $600 a person or $1,200 a household, he said, and “the I.R.S. is going to start paying this money in May.”

Start bringing up the rebate during calls, he told them. “This gives you an advantage so you can increase your wallet share,” he went on. “Get them set up on minimum balance arrangements” based around their tax rebates.

http://www.nytimes.com/2008/04/24/bu...s/24debt.html?

fxashun · 04-24-2008, 11:57 AM

I'm offended I think. I don't own a single chain or cut off shirt.

Thread Tools
Show Printable Version Email this Page
Display Modes
Linear Mode Switch to Hybrid Mode Switch to Threaded Mode