Call Centers Looking to Debt Collection after Do Not Call

Outbound calling center owners should consider getting into collections oriented work as they seek to grow despite consumer antipathy and the Do Not Call law, according to Peter Ryan, senior analyst for calling center outsourcing and off shoring at Datamonitor.

The public’s annoyance at being contacted by outbound calling centers culminated in 2003 in the Do Not Call legislation that allowed consumers to put limits on what firms could contact them. Tens of millions of consumers got on the list, leading to many outbound calling firms looking for new sources of revenue, says Ryan.

There are three segments that were given some freedom to continue outbound calling despite Do Not Call, according to Ryan’s report “Horizontal Contact Center Outsourcing Trends to 2012.” They include businesses that already had relationships with consumers, politicians and not-for-profit groups, and the debt collection industry.

Firms considering entering or expanding into debt collections should understand there are three primary approaches when contacting consumers, Ryan found.

First is the so-called warm approach where a representative contacts the debt-owing consumer and in a friendly manner lays out the facts of the case – amount owed and possible solutions in resolving the problem.

Second, agencies may make an automated reminder call using Interactive Voice Response (IVR) technology. The system contacts the debtor, informs him of the debt and the agreed upon solution, and may give him the option of speaking live with an agent if he wants to resolve the problem immediately.

The third approach is the “hard call” where the consumer has been avoiding the collector. In this call, says Ryan, a professional agent must enunciate the problem, set out a timeline for paying the debt, and make clear the possible consequences if the debt isn’t paid.

Ryan says he interviewed “leading regional and global outsource contact centers” in the U.S. Europe, Australia, Middle East and South Africa for the report. Datamonitor is a London-based business research firm.