Debt Collectors in India Using Softer Touch

Polite. Respectful. Mild-mannered.

Those are some of the words used to describe Indian debt collection agents in a story by London-based The Times.

As debts in the West soar, collection agencies are leveraging the lost cost labor of offshore environments like India and the Philippines. But some say that the Indian model calls for a more sensitive collections approach.

“…Indians don't engage in confrontation. They are very polite, very respectful, they don't raise their voice. This works,” said Brandon Black, CEO of Encore Capital Group.

Debt buyer Encore has said that it will grow its collection operations in India after taking full control of a formerly joint venture office in Gurgaon earlier this year (“Encore Reports Weak Quarter, Year as it Expands Legal Collections,” Feb. 20).

When new collectors are brought in for training in India, they are taught to build a rapport with the consumers they are targeting and to express empathy, according to The Times. Collectors are also kept abreast of American culture and major news events that might impact collections. One prominent example given was the federal economic stimulus program that put cash into the hands of many taxpayers. Like domestic businesses, Indian collectors sought to leverage the cash for debt payment.

Outsourcing debt collection to India is nothing new for U.S.-based accounts receivable management firms. In April, The New York Times covered the phenomenon, also choosing to focus on Encore and a handful of other companies (“New York Times Explores Indian Debt Collection Outsourcing,” April 24).