Coast Professional held onto its first place ranking among small business contractors in U.S. Department of Education’s private student loan collection performance competition in July.  Pioneer Credit Recovery, meanwhile, regained the lead among unrestricted contractors in the first month of the third quarter, as last period’s winner, Diversified Collection, fell to 13th place.

Coast Professional of West Monroe, La. scored 96.98 points to win the monthly competition in its peer group, followed by Collection Technology with 92.50 points and National Recoveries with 89.97 points.

Sallie Mae subsidiary Pioneer Credit Recovery scored 95.65 points to lead unrestricted contractors. NCO Financial was close behind with 93.28 points and ERS finished third with 92.21 points. The winner of the quarter performance results in their peer group will receive the most new accounts when the ED distributes them the following quarter.

The education department’s private collections performance results are determined by a weighted average of contractors’ performance in total dollars collected; total accounts serviced, and total administrative resolutions. The department awards 70 points to the top performer in the dollars collected category. Twenty points are awarded to the top performer in the total accounts serviced category, and the top performer in administrative resolutions receives 10 points. The other agencies are scored against the top performers in each category.

Coast won the dollars collected category and finished among the top three in the other two categories. Although ERS won the dollars collected category with the highest recovery rate during the month, Pioneer earned enough points in the category and won the accounts serviced category to take the lead in the group.

The third quarter is the last quarter that restricted contractors will be judged on their individual quarterly performance alone.  Come October 1, the education department said it will begin tallying the contributions of subcontractors.  Agencies that subcontract work will be eligible to earn up to five additional points during the quarterly competitive performance evaluation if their small business subcontractor is doing collection work based on the contract’s operational requirements. Agencies that do not subcontract may lose up to five points during the performance evaluation.

Fourteen of the 17 unrestricted private collection agencies have established a sub-contracting arrangement with a small business to increase the education department’s collections on defaulted loans.

CBE Group’s executive vice president Scott Blanchard told that Columbus, Ohio-based Value Recovery Holding (VRH) has been working as a subcontractor for CBE Group since the latest ED contract began in 2009. He said VRH’s experience and working knowledge of government contracts added value to the partnership.

“They offered the perfect combination of experience and cultural match. Their leadership team, philosophies and values were in alignment with CBE,” Blanchard said.

Performance Scores for July 2011

Unrestricted (Large) Firms

Q3 Score (July 2011)

$$ Collected (July 2011)
Pioneer Credit Recovery (Sallie Mae) 95.65 $14,598,651
NCO Group 93.28 $13,218,468
ERS 92.21 $12,014,835
EOS-CCA (Collecto Inc.) 90.06 $10,071,489
GC Services LP 87.67 $10,990,788
Financial Asset Management Systems 87.49 $11,456,116
Premiere Credit of North America 87.41 $10,323,670
ConServe 87.18 $11,422,728
Progressive Financial Services 85.94 $9,613,654
CBE Group 83.47 $9,505,459
FMS Investment Corp. 83.21 $10,794,310
Van Ru Credit Corporation 82.85 $11,506,433
Diversified Collection Services 82.55 $9,951,321
Windham Professionals 81.39 $9,308,732
Allied Interstate (iQor) 80.66 $10,310,177
Account Control Technology 71.79 $8,241,007
West Asset Management 70.91 $6,032,646
Small Businesses

Q3 Score (July 2011)

$$ Collected (July 2011)
Coast Professional 96.98 $5,538,739
Collection Technology, Inc. 92.50 $6,186,807
National Recoveries 89.97 $4,778,709
Delta Management Associates 85.99 $3,865,707
Immediate Credit Recovery 80.01 $3,574,040

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