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In previous blogs we have addressed the various services available to outsource, but what is the difference between First Party and Third Party? On the surface it seems simple to identify what sets each apart. Traditionally, First Party refers to early stages receivables that are done “in-house” and third party is the collection of charged off debt. However, as the outsourcing industry grows these definitions become much too simplistic and outdated. Outsourcing companies now offer First Party services for their Clients, obviously this is not in-house work and so the terms need to be redefined. Going forward, the terms are not about who is completing the work, instead looking at the length of delinquency.


First Party ARM

An early stage, care-based solution looks to work collaboratively with your customer service to create a streamlined and efficient customer lifecycle. Agents are experts at your business and will work collaboratively with your customers to come to a speedy resolution on the account.

Some Clients now look to outsource later stage delinquency that has not yet been charged off. These portfolios involve the partner outsourcing organization calling under their own name and adhering to the appropriate legislation – based on locations and jurisdictions. Other companies choose to outsource this later stage delinquency, but they choose to have the calls made/answered under their name and brand.

Third Party Accounts Receivables

Your third party ARM services are your post charge-off collections, the outstanding arrears for accounts that have closed.  At this point in the process your Company branding is removed from the equation, however your professional reputation remains at the forefront. Agents are still subject matter experts on your business, however, your outsourcing partner is responsible for recovering the debt without any damage to your brand. Your first party Agents will also be skilled at locating or tracking customers who have moved or changed their phone number.

Third-Party ARM

Agents are also very experienced in dealing with the nuanced and highly regulated sector. Your outsourcing partner understands the specifics of the legislation in your jurisdictions and will make sure that your Agents are fully trained on regulatory compliance, as well as on your company and your customers.

What is my Next Step?             

You should find an outsourcing partner that is able to provide you both first and third party accounts receivables. Having one partner to take your customer through the entire lifecycle will help you to provide the very best service to your customers. This partner will have the experience in your customers, have access to records of the lifecycle and will be able to provide you with a customized and comprehensive solution for your business.


Do you need a full-solutions provider for your accounts receivable? Reach out to Bill Gosling Outsourcing to see how we can help you recover your accounts more effectively. 

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Phil Newfeld

Phil Newfeld

Phil joined Bill Gosling Outsourcing in 1998 as Vice President of Canadian Operations. As SVP of Strategic Operations, he is responsible for developing and continuously improving our Accounts Receivable Management and Care strategies through all mediums, working with our internal teams, our clients, and their Risk and Analytic teams. Phil is involved in each new client project modelling and pricing. Phil is also responsible for global operational budgeting and forecasting.