“There's a traditional perception that debt collectors are tough, that they rough people up,” Manu Sharma, a smart Indian executive, said from his sleek office in Delhi's outskirts. “That's not how we work”.
Welcome to the touchy-feely world of outsourced debt collection, an industry in the throes of rapid expansion as India's call centres - famous for flogging computers, life insurance and mobile phones - now look to cash in on the global credit crunch.
Forget the old image of the debt collector as a menacing ogre out for his pound of flesh. Mr Sharma, who heads a 200-strong team that makes thousands of call to American homes every evening, is one of a new breed who are chasing - ever so sensitively - the growing horde of hard-up Westerners.
“Of course it gets emotional,” Mr Sharma says. “Over the years we've learnt that it's all about sharing life-changing experiences.” Western debt agencies have been drawn to young Indians for their mild manners, innate courtesy and deference - characteristics that have a disarming effect on even the angriest debtor, industry insiders say.
“Anybody calling up to chase a six-year-old bill is going to have a difficult conversation,” said Brandon Black, the chief executive of Encore Capital Group, an company based in San Diego that employs hundreds of Indian collectors and plans to increase staff by 50 per cent this year.
“But Indians don't engage in confrontation. They are very polite, very respectful, they don't raise their voice. This works.”
British banks such as HSBC, the country's largest, already use Indian call centres to remind credit card holders when they miss a payment. This could be just the beginning: Britain's growing band of debtors are likely to receive more long-distance calls as the levels of bad loans soar. Mark Hughes, of the investment bank Sun Trust Robinson Humphrey, said: “People dislike rude collectors and I don't think Indians fall into that category. Outsourcing to India will increase.”
With that charm comes a greater level of sophistication as the collectors devise ploys to make money on bad debts. Each morning Mr Sharma leads his team through a pep talk. Recent topics have included the likely impact on business of a recent hurricane in the US and a tax rebate scheme that put billions of dollars in the pockets of 130 million American families (potentially very good, if handled correctly).
New recruits are taught the basics in bite-sized pieces. “Establish rapport; create a solution; close the deal,” runs Mr Sharma's mantra. There are times that the workers, who make about £10 a day, can find the conversations a little surreal, says Mr Black. “We have workers calling up after sums that amount to several years' pay. It's hard for them to comprehend asking for $10,000.”
I feel your pain . . .
— The first rule for Indian debt collection workers is “establish identity, build rapport and express empathy”
— Suggested lines: “This isn’t just about getting the money back it’s about understanding your situation” or “I can’t imagine what you’re felling . . . but I do have experience of helping people in your situation”
— Create solutions while appealing to emotions. “Did you find a new job yet?” . . . “How much could you afford to pay back?” . . . “This isn’t about getting your debt back on track; it’s about getting your life back on track”
— Seal the deal — apply moral principles if appropriate. “This is the right thing to do” . . . “Can I give you an address to send a cheque” or “Can I take the details of a credit card with a spare limit on it?”
