Shakeup at Top of ED Debt Collection Competition in October

Two debt collection agencies not named Pioneer Credit or NCO Group found themselves at the top of the Department of Education’s student loan collection performance rankings for the month of October.

Allied Interstate, part of New York-based global accounts receivable management firm iQor, was the top performer on ED’s unrestricted contract in October. Second place was grabbed by Des Plaines, Iowa-based Van Ru Credit Corp.

ED’s performance scores are based on a weighted average of performance metrics, including total dollars collected, total accounts serviced and administrative resolutions.

Pioneer Credit Recovery, the overall leader in dollars collected and frequent winner of the monthly performance competition, recorded the highest collection total in the month with $21.4 million brought in. Allied was a distant second with $17.3 million collected in the month, followed closely by NCO with $17 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 $7.5 million.

The 17 accounts receivable management firms on the ED collection contract have taken in $4.67 billion for the Department of Education in the 44 months of the contract so far. Pioneer has brought in the most of all agencies with $619 million collected, while ConServe leads the small business set aside with $151 million collected.

Collection agencies on ED’s student loan collection contract are awaiting word of whether they will continue on the lucrative engagement. The department has delayed the award announcement of a new contract slated to begin early next year (“ED Collection Contract Award Pushed Back Again,” Oct. 7). Meanwhile, 26 collection agencies have been approved to bid on the new contract and are also awaiting the announcement.