NCO Group Takes Top Spot on ED Contract in January

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 first 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. 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 the month with nearly $19 million brought in. NCO Group was a distant second with $15.7 million collected, followed by Allied ($15.5 million).

On the small business set aside contract, Continental Service Group (ConServe) scored the most performance points. ConServe also had the highest dollars collected total among small businesses with $6.29 million collected in January, just beating out Account Control Technology which collected $6.23 million.

The 17 accounts receivable management firms on the ED collection contract have taken in $5.15 billion for the Department of Education in the 47 months of the contract so far. Pioneer has brought in the most of all agencies with $673.6 million collected, while ConServe leads the small business set aside with $169 million collected.

The Department of Education held a Webinar last week to cover Federal Information Security Management Act (FISMA) requirements for incoming and current collection vendors. ED announced the winners of the new contracts in the unrestricted category last month (“ED Announces Debt Collection Contract Winners in Unrestricted Category,” Jan. 9).