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Choosing the Right
Collection Agency
Mark Lombardo
Vice President
AllianceOne Receivables Management, Inc.
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Why Government Agencies May Need to Outsource:
•Budget constraints
•Hiring freezes
•Time restrictions
•No skiptracing resources
•Pressure from the public
•Growing backlog of delinquent
cases/accounts
•Technology Constraints
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Considerations Prior To Selecting an
Outside Collection Agency (OCA)?
• The OCA will be an extension of your operations and should
be free of ethical challenges
• Evaluate experience, success rate, and financial stability
• OCA staff should be well trained and operate within defined
work standards
• Check multiple similar references
• Is the OCA properly licensed to collect nationally?
• Flexibility – wide range of payment options, willing to work
with your situations, customized reporting and remittance,
etc.
• Review data security and disaster recovery plans
• Employee training and tenure
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How to make the right OCA choice
Ensure that the OCA offers all of the services you need to be
successful and to provide your staff with ease of use including:
•Clear implementation plan
•Customization to meet your exact needs
including reporting, data communication,
remittance, customer service
•Legal department
•Credit bureau reporting
•Automated placement of accounts
•Significant similar collection experience
•Dialing capabilities
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How to make the right OCA choice
Enhanced Service Offerings
•Time payment management programs (precollection)
•IVR (Interactive Voice Response) system
•On-line access to accounts
•Drivers license restoration program
•Customized letters
•Amnesty programs
•Comprehensive national skiptracing
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Recommendations for Selection Process
•Before choosing an OCA, make an on-site visit; see their operation
center first hand
•Select the OCA you feel is best qualified, then negotiate their
commission rate
•Negotiate a contract which clearly defines the relationship
•Be certain the OCA is willing to develop and maintain an honest,
straightforward relationship with you and your personnel
•Establish contact personnel
•Have frequent meetings (weekly during implementation and quarterly
thereafter) to set contract goals and discuss performance
Conclusion
•Thank you for your time and attention
•Questions are welcome