Indian Phone Banks Tackle US Debt Collection

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. (More consumer debt stories.)