India Regulates US Credit Card Deals Obligations?

US credit  card debt collection agencies make fabulous revenues each year for their job of "knocking out" late car loan payments, overdue installment loans and credit card debts. Until very recently American consumers have been attacked by national debt collectors who have been moving heaven and earth to get debtors' obligations fulfilled.

Today, however, US debt collection business has moved onto the international stage and overdue payments on American credit card deals are now the concern of some very hardworking Indian companies.

J. Brandon Black, the chief executive of a debt collection agency operating in San Diego announced that about half the company's collecting force will be provided by some of the most persistent operators in India.

Lots of hopeless debts on credit cards, car loans and mortgages put banks and card issuing companies in a tight corner, and in their attempt to restore at least some part of their loans, they turn to debt collectors. In fact, debt collectors buy bad debts from banks at a bargain and collect the cash that they manage to pull out of the customers.

It is interesting that US credit consumers are more likely to respond to Indian debt collectors as the latter are polite, calm and respectful. They fight the common stereotype of a US debt collector, abusive and threatening and thus, do their job more effectively, though more costly at the same time.

What's more Indian debt collectors do not catch you at your door step, do not come to your house or work. They are phone professionals specially trained to communicate in the way that a consumer is willing to negotiate.

Bad credit has become the US national problem and if the national credit industry executives cannot solve it, they pass it over to those who can. Armed with a sophisticated system providing a customer's personal and credit information, such as credit history, Social Security Number and address, Indian debt collectors are becoming as rich as their ability to collect allows them.

Today Indian collectors stake mostly on consumer and business credit cards holders, guided by the economic stimulus of getting tax rebates. As the I.R.S. is going to pay as much as $ 600 a person to as many as one hundred and thirty million US families, Indian debt collectors may press consumers with the rebate as a source to cover outstanding balances.

Hearing a mild and respectful voice of a collector, any consumer would agree on some minimum balance arrangements.

This is the way US debt collection industry makes money and protects major banks from huge write offs like the one undertaken by Citibank not long ago. The policy of twisting a customer's arm to knock out his/her does not rule any more and American debt collection companies will look for more locations outside the United States.