The Truth of Credit

For those of you that have read Tom Friedman’s “The World is Flat” this will come as no surprise to you…the Collection Industry just like many others is being sent overseas to India. Whether you want to believe it or not it’s going to continue to happen as companies are pressured to save money and increase profits. So what does this mean for you as the consumer?

Being in debt is already a stressful situation in and of itself.  I can’t imagine that having someone from a foreign country calling several times a day is going to make it any easier on you. However, for you the debtor this is a good thing because these outsourced collectors are much more likely to be on a shallower learning curve. They are more than likely going to be a lot more polite than their American counterparts. However, I can just envision the language barrier being a big issue.

The TRUTH is this was inevitable. Collections as a practice is a pretty monotonous process of “smiling and dialing.” This does not mean that the whole industry will be outsourced but I do believe you will see more and more calls coming from India. Can you blame the collection companies when collectors in India have an average base salary of 17,000 rupees ($425) a month, and can earn bonuses of more than $1,000 a month for getting customers to pay. In contrast, collectors in the United States, make about $6,500 a month and bonuses can reach up to $10,000 per month

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