Pioneer Credit Regains Top Spot on ED Collection Contract to Start Q2

Pioneer Credit Recovery was the top performer on the Department of Education’s student loan collection unrestricted contract in April after being bested by NCO Group and Allied Interstate in the first quarter.

Continental Service Group (ConServe) remained the top performer on the small business set aside contract.

Pioneer posted a strong start to the second quarter of 2009 by obliterating the competition on the unrestricted contract – comprised mainly of large ARM companies — with a score of 97.95 and total collections of $20.6 million in April. The next closest competitor was Van Ru Credit Corp., with a score of 84.66 and collections of $16 million. NCO trailed Van Ru for third.

ED’s performance scores are based on a weighted average of performance metrics, including total dollars collected, total accounts serviced and administrative resolutions. The scores are released each month, but compiled for internal scoring on a quarterly basis. Final quarterly rankings determine bonuses and account placement levels.

On the small business set aside, ConServe achieved a perfect score of 100 in April to take the top spot among the smaller companies collecting for ED, although Account Control Technology brought in more money — $6.85 million compared to ConServe’s $6.79 million.

Overall, recovery rates were better in April 2009 than in April 2008, marking a reversal of the collection deterioration shown in the first quarter (“NCO Edges Out Allied Interstate for Top Spot on ED Collection Contract for Q1,” May 4). Pioneer’s recovery rate of 1.84 percent – the highest among all collection agencies – was better than the top rate of 1.62 percent in the same period a year ago. Agencies receive all of the collection inventory for an entire quarter at the beginning of each period, so recovery rate improve throughout the month.

The 17 collection agencies currently on the contract – five on the small business set aside and 12 on the unrestricted contract – have collected $5.64 billion for the Department of Education in the 50 months the contract has been in force.