NCO Group
| Company type | Private |
|---|---|
| Industry | Business process outsourcing |
| Founded | 1926 |
| Headquarters | Horsham, Pennsylvania , United States |
Area served | Worldwide |
Key people | Jay King (Co-Head), Tim Galloway (Co-Head), Pete Grandelli (SVP Strategic Business Units), Tony L'Abbate (SVP ARM Operations Control), John "Duffy" Campbell (President of Global Sales & Marketing), Robert DiSante (SVP International Division) |
| Products | Accounts receivable management, customer relationship management, back-office services |
Number of employees | 30,000 (2011) |
| Parent | One Equity Partners (since 2006) |
NCO Group, Inc., based in Horsham, Pennsylvania, is a firm specializing in business process outsourcing with expertise in accounts receivable management, customer relationship management, and back-office services. Established in 1926, NCO was listed on the Nasdaq stock exchange (ticker: NCOG) from 1996 until its 2006 acquisition by One Equity Partners (OEP), the private equity division of JP Morgan Chase & Co., alongside other investors.
By 2011, NCO had grown to employ around 30,000 individuals operating from over 100 locations worldwide through its subsidiaries, including NCO Financial Systems, NCO Customer Management, Transworld Systems, University Accounting Services, and Systems & Service Technologies. The company increased its market presence in 2008 by acquiring Outsourcing Solutions Inc. (OSI), a competitor in the accounts receivable management sector. In 2010, NCO reported total revenues of $1.6 billion.
In 2012, NCO combined operations with APAC Customer Services to create Expert Global Solutions, thereby broadening its international footprint and service capabilities.
The leadership team features Co-Heads Jay King and Tim Galloway; Senior Vice Presidents Pete Grandelli (Strategic Business Units) and Tony L'Abbate (ARM Operations Control); John "Duffy" Campbell as President of Global Sales & Marketing; and Robert DiSante serving as Senior Vice President of the International Division.
NCO’s operational strategy centers on utilizing technological advancements and scale to provide extensive receivables management services across various industries. Although the company faced a Federal Trade Commission penalty in 2004 related to Fair Credit Reporting Act non-compliance, it has sustained a strong reputation and influential position within the accounts receivable management industry.
Subsidiaries
NCO manages several subsidiaries catering to different sectors:
| Subsidiary | Services |
|---|---|
| NCO Financial Systems, Inc. | Management of accounts receivable, healthcare revenue cycle services, attorney network solutions |
| NCO Customer Management, Inc. | Customer relationship management solutions |
| University Accounting Services, LLC. (UAS) | Specialization in student loan services |
| Transworld Systems, Inc. (TSI) | Accounts receivable management services |
| Systems & Services Technologies (SST) | Third-party receivables servicing |
| NCO Financial Services, Inc. | Canadian accounts receivable management (currently owned by Gatestone) |
FTC Settlements
In 2004, NCO reached a settlement with the Federal Trade Commission concerning alleged violations of the Fair Credit Reporting Act (FCRA), incurring a $1.5 million fine due to inaccurate delinquency reporting on consumer accounts transferred in 1999. The company had rectified these inaccuracies before the FTC's involvement and continues to comply fully with FCRA requirements. Later legislative amendments to section 623(a)(5) removed liability for these issues.
In 2013, NCO consented to a $3.2 million fine addressing FTC allegations of aggressive debt collection practices, which included excessive phone calls, contacting consumers during prohibited times or places, and unauthorized disclosure of debt information to third parties.
Pennsylvania Settlement
In 2006, NCO agreed to a $300,000 settlement with Pennsylvania after facing multiple consumer allegations of infringing the Fair Debt Collection Practices Act. Complaints included failure to validate debts, inappropriate contact with third parties, falsely presenting calls as originating from law offices, attempting to collect debts beyond the legal statute of limitations, and engaging in harassment. These actions were found to violate state consumer protection regulations.
2012 Labor Violations
A group of employees from NCO's Canadian division initiated lawsuits accusing the company of unethical labor conduct. Allegations involved compulsory overtime exceeding scheduled shifts and wrongful classification of employee terminations as voluntary resignations, which effectively denied workers access to insurance benefits.