A sign of the times unfortunately.
Note the sentence in the article :
collectors in India are =93very polite, very respectful, and they don=92t
raise their voice.=94 He added, =93People respond to that.=94
--------------------
Debt Collection Done From India Appeals to U.S. Agencies
By Heather Timmons The New York Times | 24 Apr 2008 | 11:32 AM ET
In a glass tower on the outskirts of New Delhi, dozens of young
Indians are on the telephone, calling America=92s out of work, forgetful
and debt-stricken and asking for cash.
=93Are you sure that=92s all you can afford?=94 one operator in a row of
cubicles asks politely. =93Well, how do you take care of your everyday
expenses?=94 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=92 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.
=93India will be the only place we grow this year,=94 said J. Brandon
Black, the chief executive of the Encore Capital Group, a debt
collection company based in San Diego. India is the company=92s largest
operating area, with about half the company=92s collection force of more
than 300.
Although the stereotype of a collector may be =93some guy with chains
and a cut-off shirt,=94 Mr. Black said, collectors in India are =93very
polite, very respectful, and they don=92t raise their voice.=94 He added,
=93People respond to that.=94
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.
So far just a tiny fraction, maybe 5 percent, of American debt
collection is done outside the country, industry executives estimate.
But new business is in the pipeline.
Financial services clients are saying, =93We want you to collect my
debt, to analyze it and change the way that we sell=94 the loans, said
Tiger Tyagarajan, executive vice president at Genpact, the business
processing company spun off from General Electric that has roots in
India. Genpact, which works with lenders to get customers to pay,
rather than buying loans directly like Encore, employs thousands of
debt collectors in India, Romania, Mexico and the Philippines, and is
hiring in all those locations.
In the past, the prevailing wisdom about wringing money from late
payers has been =93if you=92re calling the Midwest, you want someone from
the Midwest to twist their arm,=94 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. =93This is really a sales job,=94 Mr. Hughes said. =93It is
commission-intensive, and you=92re paid on your ability to collect.=94
Like many sales teams, Encore=92s 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.
=93One hundred thirty million U.S. families will get a tax rebate this
season=94 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 =93the I.R.S. is going
to start paying this money in May.=94
Start bringing up the rebate during calls, he told them. =93This gives
you an advantage so you can increase your wallet share,=94 he went on.
=93Get them set up on minimum balance arrangements=94 based around their
tax rebates.
Once the calls start flowing, Encore=92s Gurgaon office resembles
nothing less than the headquarters for an enthusiastic fund-raising
telethon. Just minutes after collectors have put on their headsets, a
supervisor yells out =93Rajesh, for $35 a month for three months.=94 All
employees enthusiastically respond by clapping three times, and Rajesh
is the first on the day=92s sales board.
Companies like Encore often schedule dozens of payments and make
dozens of calls before the loan is paid off.
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