Bob Peterson is aware of the stereotypes and perceptions surrounding the debt collection business. He said people envision the agencies to be “cold and dark and smoky,” windowless dens where bank accounts go to die.
But a tour through Peterson’s Stellar Recovery, located in Kalispell’s Forum building on U.S. Highway 93 South, paints an entirely different picture, for both the business atmosphere and the agency’s purpose.
The first-floor call center is bright and airy, with a generally laid-back conversational tone. Up on the third floor, where the company’s administrative headquarters are located, large windows give view to the cityscape of Kalispell. There are cozy offices, a training room with state-of-the-art videoconferencing capabilities and a climate-controlled area that operates the sophisticated dialing system powering the call center.
“People don’t realize how sophisticated we’ve become,” Peterson said.
Stellar Recovery, which currently employs 72 people in its Kalispell and Denver locations, is in the midst of a phased-out hiring program to bring 100 more employees to the company throughout the year. Roughly 80 of those will be in Kalispell. Company officials have been holding open houses in conjunction with the Flathead Job Service and have already begun the first rounds of hiring.
Roberta Diegel, employment specialist at the Flathead Job Service, said she was impressed by her visit to Stellar Recovery. Furthermore, she’s pleased by the prospect of so many good-paying jobs coming to the valley at a time when unemployment rates continue to hover in the double digits.
“It’s really great,” Diegel said.
For reasons related to the sagging economy, Peterson said over the past year there has been a substantial increase in the amount of debt his agency is asked to collect. After people fall into debt – through credit cards, car loan payments, checking accounts, payday loans and more – an outside entity buys up the debt as an asset. These debt buyers are often hedge funds or investment groups, and after purchasing the debt they look to collection agencies like Stellar Recovery to reach out to the indebted consumers.
Peterson’s agency has been collecting $1.2 million worth of debt per month for his clients.
“Oh my goodness, there’s a tremendous amount of debt out there right now,” Peterson said.
There are 3,800 such agencies in the nation, Peterson said, including a number in Montana. But Peterson said his company is the only one he knows of in Montana to be licensed nationally, meaning its jurisdiction isn’t limited to state borders. Much of the debt his company deals with originates at national banks. In fact, Stellar Recovery doesn’t deal with local debt at all.
People who accumulate debt are ultimately subject to litigation if the entity from which they borrowed chooses to pursue that route. But even without a lawsuit, debt hurts, Peterson said. It lowers credit ratings, makes it harder to qualify for loans, looks bad to employers and sticks with you wherever you go.
“It’s hard to hide,” Peterson said.
The employees at Stellar Recovery who are charged with the task of calling the indebted consumers are called recovery specialists. They make up the majority of the positions offered at the company, including the 100 new job openings. These recovery specialists take an extensive training course before beginning their job.
Once employed, their job requires patient people skills, typing and number crunching, among other skills. As mandated by the Fair Debt Collection Practices Act, recovery specialists must maintain civil tones even in the face of angry consumers and honor the consumers’ requests. Stellar Recovery performs a thorough background check to decide a consumer’s “collectability status,” meaning the agency generally has a decent idea that the contacted consumer will be willing to cooperate, or at least listen to options for getting out of debt.
“All we’re doing is communicating,” Peterson said. “We don’t yell and scream; we see if there are any arrangements to work the debt out. They can call us whatever (names) they want.”
Wages for recovery specialists begin at $10 per hour, but can bump up to $15 within a year. Peterson, who is co-owner of the company along with John Schanck, said he has recovery specialists earning between $30,000 and $70,000. Employment includes medical, dental and optical insurance, along with vacation days.
Peterson said he will be hiring 10 more employees later this month. He invites people to come to the office, located at 1845 Highway 93 South, between 9 a.m. and 5 p.m. on the weekdays to fill out an application. Or they can call (406) 755-9522. Peterson is aware of how significant his company’s new jobs are for the valley right now.
“It’s what the community needs,” Peterson said.