IR Loan Servicing Inc. Establishes a Call Center in Fukuoka (Kinyu Keizai)

Oct 27th, 2003

Call Center Development by Small Scale Debt Collection Reinforcement

Developing in Major Cities Beginning with Fukuoka in February (Kinyu Keizai Newspaper)

“Avoid delinquent loans before it’s too late.” With catch phrases like that, a consumer-based finance service provider, IR Loan Servicing Inc. is calling on banks to outsource small scale loan collections. The servicer that makes business out of bad credits is challenging a new business by going the opposite and using its know-how on the matter.

IR Loan Servicing Inc. will reinforce its small scale debt collection business. Opening a new call center in December, they have a vision of developing nationally. They predict a growth in this business due to the fact many banks are outsourcing debt collection of loans without security.

The servicer’s core business lies in delinquent loan buy outs and collection on someone’s behalf. With this new call center set up, the company is aiming at outbound collection service of individual loan without security and credit expense on behalf of financial institutions. They received the permission to practice since the service is not specialized loans limited to servicers.

Financial institutions are pursuing individual loans because the business capital growth is slowing down, but the rate of delinquency is growing. Hence, it is favorable to call on delinquencies at early stage and avoid becoming bad non-performing loans.

“Certainly, there are banks that regard collecting debt as their major business, but outsourcing this operation is increasing when they think about speed and cost,” says the company vice president, Mr. Masamitsu Seto. The servicer is thinking that if they match their licensed services to the bank’s compliance and capitalize on counseling capabilities previously used in debt collection services, then they have a good chance of winning against tele-marketing companies. The Suruga Bank has already decided on signing a contract with IR Servicing.

The Fukuoka Call Center will be a 30 seats, 60 staff organization and anticipates to grow to 100 seats.

Through the help of Hitachi Electric Services, the call center is structured with IP phones and customer data all managed in Tokyo. They are preparing to accommodate future growth by setting up facilities and finance services in other major cities.