NCO and ConServe Leading ED Collection Contract So Far in First Quarter

Collection agencies NCO Group and Allied Interstate grabbed the top spots on the Department of Education’s student loan collection performance rankings for large companies after the second month of the new quarter.

Continental Service Group led the way on the small business contract.

NCO, based in Horsham, Pa., was the top performer on ED’s unrestricted contract in January and February. Second place was grabbed by Allied Interstate, part of New York-based global accounts receivable management firm iQor

ED’s performance scores are based on a weighted average of performance metrics, including total dollars collected, total accounts serviced and administrative resolutions. Final quarterly rankings determine bonuses and account placement levels.

Pioneer Credit Recovery, the overall leader in dollars collected and frequent winner of monthly and quarterly performance competitions, recorded the highest collection total in February with $22.5 million brought in. NCO Group was a distant second with $16.9 million collected, followed by Van Ru Credit Corp. ($15.2 million). Through the first two months of the quarter, Pioneer has collected $41.5 million with NCO in second at $32.6 million.

On the small business set aside contract, Continental Service Group (ConServe) scored the most performance points, just edging out Account Control Technology (ACT). But ACT collected more money in February, bringing in $6.1 million to ConServe’s $5.9 million. Through the first two months of the year, ACT holds a narrow lead over ConServe in total dollars collected, $12.36 million to $12.2 million.

The 17 accounts receivable management firms on the ED collection contract have taken in $5.3 billion for the Department of Education in the 48 months of the contract so far. Pioneer has brought in the most of all agencies with $696.2 million collected, while ConServe leads the small business set aside with $175 million collected.

Earlier this month, the Department of Education announced the new debt collection contractors on the small business set aside (“Department of Education Names Small Business Collection Contractors,” March 11). The announcement brings the total number of collection agencies on the new student loan collection contract to 22. There were a total of 17 on the last contract, awarded in 2004.

ED announced the new unrestricted contractors in January (“ED Announces Debt Collection Contract Winners in Unrestricted Category,” Jan. 9).