Collection Agency Adding 150 on Contract Win

NORWELL, MA – A local debt-collection company said yesterday that it plans to add 150 workers to its Norwell office to handle a massive U.S. Department of Education contract and compete for additional work.

Collecto Inc., which does business as Collection Company of America, also plans to expand its Assinippi Park headquarters to accommodate its growing staff.

Under the contract with the Department of Education, Collecto will try to collect on defaulted student loans. The company will start with about 80,000 accounts and be paid based on a portion of the debt it collects, Paul Leary Jr., CEO of Collecto, said. That should help the company reap about $2 million in revenue in the first year of the contract, he said.

The revenue could rise to as high as $13 million or more a year in the next several years, depending on whether Collecto successfully competes with rivals for other federal student loan accounts, Leary said.

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