Indian Phone Banks Tackle US Debt Collection

Cheaper and better workers draw American agencies overseas

By Matt Cantor, Newser Staff

Posted Apr 24, 2008 2:20 PM CDT

(Newser) – As individuals' debt grows in a tough economy, US debt-collection agencies are expanding into India, where collectors work more cheaply—and are often better, the New York Times reports. Indian collectors are “very polite, very respectful, and they don’t raise their voice,” says one CEO. And a big payout in India can be a quarter of the salary American collectors expect.

With $51 billion in debt rounded up in 2005, collection is big business. And though only about 5% of the collections business has spread overseas, the trend is growing. It can take dozens of calls to pin down a single client, but heavy commissions and intensive training keep collectors plugging away.

Indian call centers are increasingly handling US debt collection. (KRT Photos)

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Cheaper and better workers draw American agencies overseas

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Indian Debt Collectors See US' Dark Side

Outsourced call centers get ring-side seat for economic crash

How Call Centers 'De-Indianize' Workers

The allure of wealth drives call-center workers to shed culture

Kids Outsource Homework to Indian Tutors

Cultural divide an issue, but tutors far cheaper overseas

Facebook Turns to Indian Workers

Company plans to double number of support centers

Now Driving Innovation in India: the Poor

As developed economies slump, it markets directly to the lower class

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Cheaper and better workers draw American agencies overseas

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OTHER STORIES ON OUR RADAR

India • outsourcing • consumer debt • debt collection

MOST POPULAR STORIES

[ By Views ]

[ By Comments ]

More Newser Stories

Indian Debt Collectors See US' Dark Side

Outsourced call centers get ring-side seat for economic crash

How Call Centers 'De-Indianize' Workers

The allure of wealth drives call-center workers to shed culture

Kids Outsource Homework to Indian Tutors

Cultural divide an issue, but tutors far cheaper overseas

Facebook Turns to Indian Workers

Company plans to double number of support centers

Now Driving Innovation in India: the Poor

As developed economies slump, it markets directly to the lower class

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Site

Newser By Users

Community

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More News

What is Newser?