When delinquent accounts start to drain your team’s time and cash flow, outsourcing to a trusted partner can restore focus and results. Magellan’s Third-Party Collections service provides professional, compliant recovery at scale—so you reduce bad debt while protecting your brand.

Leverage that Drives Resolution

Magellan’s third‑party role provides both perceived and actual leverage: visible escalation to an independent, compliant agency creates urgency and improves right‑party contact, while—when you authorize it—our Credit Reporting Services can furnish eligible accounts to the major credit bureaus under FCRA, increasing accountability and motivating faster payments or plan arrangements; if you prefer not to use credit reporting, we still drive resolution through negotiated plans, settlements, and hardship options.

What This Service Delivers

• Professional Representation: Trained agents who uphold your brand standards in every interaction.

• Scalable Capacity: Rapidly expand recovery efforts without hiring, training, or standing up technology in-house.

• Transparent Reporting: Real-time dashboards and scheduled reports that keep you in control.

• Compliance-First: Practices aligned to FDCPA, HIPAA (where applicable), TCPA, and state requirements.

• Outcome Focused: Programs optimized for revenue recovery, customer experience, and risk reduction.

How Our Third-Party Programs Work

1. Discovery & Program Design- We review your portfolio characteristics (balance, age, industry, geography, prior attempts) and define KPIs, compliance requirements, and escalation paths.

2. Data & System Integration- Secure data transfer, account ingestion, and configuration of dialing, messaging, and case management workflows.

3. Multichannel Outreach- Right-party contact strategies via phone, email, and SMS with contact-time optimization and consent management.

4. Negotiation & Resolution - Agents trained in empathetic but firm negotiations, payment plans, settlements, and hardship accommodations when appropriate.

5. Quality & Compliance Monitoring - Call recording reviews, coaching, and auditing to ensure adherence to policies and regulations.

6. Reporting & Continuous Optimization - Weekly performance reviews, A/B testing of cadences, and portfolio segmentation to increase recovery over time.

   
   

Key Advantages Over In‑House Collections

• Lower Operating Burden: Avoid hiring cycles, licensing, and technology overhead.

• Specialized Expertise: Access seasoned collectors, skip tracing tools, and proven playbooks.

• Speed to Impact: Launch quickly with mature processes and ready-to-run infrastructure.

• Contingency-Based Pricing: Contingency-only, success-fee model aligned to outcomes.

Compliance & Brand Protection

Magellan treats every account with respect and care. Our programs incorporate do-not-call scrubs, consent tracking, adverse action handling, dispute workflows, and documentation management. We pair rigorous policy training with active supervision and audit trails, so you get confident recovery without reputational risk.

Technology Stack

Omnichannel Engagement

Orchestrated voice, email, and SMS with contact‑strategy optimization (best channel/time per account), consent and preference management for TCPA compliance, multilingual support, and automated fallbacks that keep conversations moving. The result is higher right‑party contact rates, faster resolutions, and lower cost‑per‑recovery—while giving consumers convenient, respectful options to respond and pay.

Payment & Settlement Tools

Secure, PCI‑aware payment portals and agent‑assisted workflows that accept ACH and card; instant plan creation with configurable terms and hardship options; digital settlement offers; automated reminders via email/SMS/IVR with consent management; real‑time posting, receipts, and audit trails; and failed‑payment handling with smart retries. The result is higher kept‑promise rates, faster cash application, and lower cost‑to‑collect—without expanding your back office.

Analytics & Segmentation

Propensity‑to‑pay scoring; behavioral and vintage segmentation; cohort liquidation tracking; RPC and attempt‑efficiency analytics; agent performance scorecards and coaching insights; champion‑challenger testing; and next‑best‑action routing that prioritizes accounts by expected value and risk. The result is smarter contact strategies, higher liquidation at lower cost‑per‑recovery, better capacity planning, and continuous performance lift—while safeguarding compliance.

Sample KPIs We Track

To keep you informed and in control, we provide transparent, outcome‑focused reporting on every program. Typical KPIs include:

• Liquidation rate by age/vintage

• Right‑party contact rate

• Promise‑to‑pay rate and kept‑promise rate

• Average days to resolution

• Dispute rate and resolution time

• Complaint rate

Industry Specialties

Every industry has unique compliance rules, consumer expectations, and portfolio behaviors. Magellan’s Third-Party Collections programs are built with sector-specific workflows, talk-offs, segmentation, and regulatory considerations—so you get higher liquidation and lower risk from day one. Below is a sample of the industries we support with tailored recovery strategies.

Healthcare & Medical Providers

Hospitals, physician groups, specialty practices, mental health providers, dental offices, and ASC networks rely on Magellan for compliant, empathetic recovery. We navigate insurance complexity, EOB confusion, financial-assistance exploration, and sensitive conversations without compromising patient relationships. Aligned with HIPAA, TCPA, and state requirements.

Learn more about our Medical Collections Agency.

Utilities & Energy

Electric, water, gas, and telecom utility providers choose Magellan for high-volume consumer outreach, urgent resolution workflows, and outage-related communication sensitivity. We incorporate hardship programs, reconnection logic, and tailored segmentation for regulated and deregulated markets.

Financial Services & FinTech

Banks, credit unions, FinTech lenders, and alternative finance companies benefit from our strict adherence to FDCPA, FCRA, UDAAP, and EFTA standards. We handle loan, card, overdraft, NSF fee recovery, and installment portfolios with advanced scoring and high-accuracy dispute handling.

Government & Public Sector

We support municipalities and government entities with compliant recovery of taxes, fees, fines, licenses, and public-service receivables. Workflows include documented notices, strict audit trails, multilingual support, and public-trust–aligned communication standards.

Education (Higher Ed & Private Institutions)

For tuition, housing, student fees, parking, and auxiliary services, Magellan uses student-friendly talk-offs, tailored hardship options, and escalation paths respectful of academic relationships. FERPA-aligned process where applicable.

Real Estate, Property Management & HOA

We manage rental arrears, HOA dues, maintenance fees, and move-out balances with workflows tailored to local statutes, property timelines, tenant protections, and documentation requirements.

Telecommunications & Subscription Services

Consumer and business telecom, internet, SaaS, and membership-based organizations rely on Magellan for retention-aware recovery. We combine omnichannel outreach, data-driven segmentation, and churn-sensitive talk-offs that protect future customer lifetime value.

Frequently Asked Questions

Do you report delinquent accounts to credit bureaus?

Yes—when you authorize it and the account meets eligibility criteria. Credit reporting is delivered through our Credit Reporting Services program and follows FCRA requirements, including accurate furnishing, timely updates, and dispute handling.

Will you contact customers as Magellan or as our brand?

All Third‑Party Collections outreach is conducted as Magellan Debt Recovery. If you want us to contact customers in your company’s name, please visit our Early Out Collections service.

How do you protect our customers’ data?

We use secure data transfers, encryption, access controls, and auditing. Processes are aligned with applicable regulations.

Can you integrate with our CRM or billing platform?

Yes. We connect to common CRMs and billing systems via secure file exchange or API‑based integrations.

Ready to reduce bad debt?

Contact Magellan Debt Recovery to launch a third‑party collections program that’s compliant, scalable, and results‑driven.