There are now more small private collection firms that are having the chance to work with the very sought after United States Education Department private student loan collection contract.
There are about 14 unrestricted private collection firms that have agreed to a subcontracting deal with small businesses to raise the collections on defaulted loans of the Education Department, as of the end of July. By October 1, the Education Department will start using the collection contributions from small businesses when distributing points to contractors in the performance evaluation held every quarter.
Federal government agencies are encouraging all of their contractors to subcontract with small businesses as much as they can. To increase the possibilities of having subcontracts on the latest student loan contract, the Education Department has incorporated a clause in the 2009 debt collection contract that gives incentives to the biggest private collection firms who agree with the directive and give proper sanctions for those who do not comply. There are 22 collection agencies on this specific contract, with 17 of them in the unrestricted category and 5 in the small business category.
According to Scott Blanchard who is the executive vice president of the CBE Group, “They possessed a level of state and federal collection experience that gave them a working knowledge of government contracts and added value to our alliance. Today, CBE is far exceeding ED’s subcontracting goals.”
Value Recovery, a subcontractor of CBE Group, is set to collect defaulted student loan when the contract begins.
Blanchard further says, “We have made financial investments and provided many ancillary services to assist not only in VRH’s compliance, but also their effectiveness. Throughout our partnership with VRH, we have also provided management, extensive training, and use of CBE’s proprietary collection system.”
Tags: collection agencies, Financial Services, extensive training, ancillary services, collection contract
