TOPIC OF THE WEEK: Outsourcing Debt Collection

Agreed???..no arguments. Maximum collection oriented problems arise because of collection reps who are not aware of the rules at all.

If all the companies set up their own collection department, I think the unfair practices of debt collection could be minimized.

Third party collectors are very harsh to people, they don't know how to behave with others even. They need lessons???..

I would like to share my experience with you all here. Generally I pay my bills timely, but at that time I lost my job and had a severe health problem. Anyway, some of those accounts went to collection and they started calling me like anything.

When I got well and joined a new job, I contacted all of the creditors. Most of the original creditors cooperated with me, though there were some who didn't. But this ratio is just reverse in case of collection agency.

They never disclosed their address, the only words they know is ???Send payments in full within 24 hours??????that's it. The collection reps are very rude also.

What I've learnt from my experience is that it's difficult to negotiate with third party collection agency, because they are paid against collection.

P.S. Luckily I could manage to pay all the dues.

Hi Pedro

Welcome to the forums.

Please feel free to browse through our other topics in this forum also.

One should try to work with the original creditors as far as possible before it reaches the third party collections. This status is a negative remark which will stay in the credit file for years. Not to forget, these agencies involve in illegal and untidy collection activities which are violations of fdcpa and FCRA laws.

Avoid collections, if at all possible. The reps impose such cruel efforts because they are paid high incentives on each collection. So, the behavior is absolutely gruesome.

While many companies are out sourcing their collections (mainly third party), and this has gone on for quite a while, the trend I have noticed lately is for Collections to be outsourced and off shored, Mainly to countries like India and Pakistan.

Often these people do not listen at all, don't try to work with consumer and are not trained at all in American Laws. I don't know companies do this thinking they can get around fdcpa by having the work done off shore or not. These calls are even more aggravating than normal collections calls.

Maybe in a few months or a year we will have former collectors on here complaining about the collections industry because they lost their job to an out sourced, off shored competitor, and they can no longer pay thier bills as a result.

Among companies that I know have done this are
American Express, Dell Financial Services, and Capital One

As a Certified Collector, I find it disheartening to hear of the offshoring of accounts. Not only do American households suffer, but the service to the average consumer does as well. I know what most people think of collectors, however, if you work with a reputable company and understand the impact of what our industry does for consumers, by our clients not increasing costs across the board to offset someone else's debt, our work is not the vicious, inhumane giant as it is portrayed.

Also, most collection agencies will work with consumers, when correspondence and contact occurs. Repeat calls, letters and affecting the credit generally only happens when there is no contact with the agency. The agency has no choice but to assume the consumer has no intention to pay.

We have been lucky in this forum lately that a few conscientious and professional minded members of the debt collection community have shared with us a wealth of information and inside knowledge. Their input is very much welcome and appreciated.

Unfortunately, many can state from first hand experience that Many in the debt collection industry are not so up standing and are in fact unscrupulous. Often times when Debt collection is outsourced and ultimately off shored, what would already be a tense situation is aggravated tremendously by the language barrier. While many of these people may be regarded as speaking English well in their home country, often their accent and lack of complete command make it nearly impossible to have any kind of meaningful discussion with them. Furthermore they seem to be poorly trained in the laws they must work under, and are usually in such a hurry to get off the phone (maybe because they are paid by the call and not by the hour?) that they want all or nothing, and will not take the time to even discuss a payment arrangement of any kind. This is definitely a slippery slope which American Business is dancing along, and they and the American people are the only one who will suffer as a result.

Dee Dee,

Welcome to forums. We try to provide mental and legal support to innocent people who are the victims of bad collection agency.

Now, I am not going to believe that all collection agencies are as good as you have stated in your post. Then we did not have this thread in our forum-
http://forums.debtcc.com/forums/elliscrosbynews.html

Again, we do admit that not all the collection agencies are bad. There are agencies that are very much cooperative and helpful. Just check the forum discussion here-
http://forums.debtcc.com/collectionagency-harsh.html

The point is the ratio between good and bad collectors and that is the reason behind portraying them as ???inhumane giant???.

I think not all the collectors are trained well nor are they aware of the laws. That is the reason they continue harassing people. Is this a consequence of out sourcing collection jobs? What do you think?

I was told on another board dealing with offshore issues that Offshore collectors ( mainly in India ) can be very vindictive against Americans. Many generally do not like Americans and if you say something to upset them some will purposly record your payment as late ( past the time it was made ) and even try to put false claims on your credit report.

Offshoring is sold in the US as a well educated perfect speaking English labor pool providing a means to cut costs. The US co that offshored to them generally has no idea of how they operate and any unfair practices and if it was made known would not appreciate it. As far as I know the US co is still responsible for abusive tactics perfomed by the Offshore company so I would try to hit them.

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[/quote]Also, most collection agencies will work with consumers, when correspondence and contact occurs. Repeat calls, letters and affecting the credit generally only happens when there is no contact with the agency. The agency has no choice but to assume the consumer has no intention to pay.Quote:

oops, obviously I do not know how to use the 'quote' button very well. I was supposed to be quoting DeeDee...somehow I put my own comments in quote.

Bryan P. - These types of things have and do go on. Often Indian call centers are staffed with very inexperienced personel who don't understand whats legal and whats not. They are given a lot of power and sometimes abuse it. Here the main culprit is inexperience. Offshore co's very often misrepresent the quality and experience of their staff and their US clients do not know the background of the offshored employees.

The US based co that offshored very often does not know what is going on. There was even something I read about where a CEO received complaints while attending a conference about hard to understand foreigners in his call center and he was not even aware that his call center had been offshored to India.

There was a sting a few months ago where an Employee in India was selling personal information. It was discovered when its US customers complained of illegal debits to their accounts.

Glynnie,

I agree with you. But as per my take, creditors should be more attentive to this issue. Suppose the collection process of XYZ Company is very bad. Doesn't that hurt their goodwill? And if this fact is open to all, people will avoid doing business with them. so ultimately the US Creditor will be loser, right?

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Stan I wish things operated that way. Fact is many companies are either not aware of what is going on with their offshored partners or just do not care. Many execs just see the bottom line Cost-Savings.

I think offshoring can and does hurt business but the dang this just keeps growing. In spite of all the complaints and bad service Offshoring keeps getting bigger.