External Debt Collection

McLaren Credit Services


Since 2008 Sigma Connected (trading as McLaren Credit Services – MCS) has been providing debt collections services to one of the biggest unsecured debt lenders (Client A) in the country across several brands.

We first worked with Client A on their Potential Debt Sale placements before they were sold. This was proof to the client of our ability to collect on very tough debt. At Sigma, we believe that debt can only be collected once which makes it essential to have a good collection rate in the first round to reap all the collection benefits.

Today, we continue to manage a huge portion of their outsourced collections across early and late-stage portfolios such as Debt Review Exit Matters where we manage 76.37% of their base while also managing 15 % of their base for early arrears’ portfolio, alongside six other EDCs and their internal collections team.


Client A had thousands of cases which were previously under debt review, and they had also not received any payments from the Debt Counsellor for periods of up to six months.

These challenges resulted in the client not generating any payments. Additionally, the third parties who dealt with them were not able to salvage the outstanding payments either.

Client A was keen to benchmark internal and external performance across a range of areas such as collections performance (yield rate), return on investment and, most importantly, quality.


During a three-month trial, MCS set up team of two full time employees (FTEs) to work on the debt review exit cases. This was launched within 2 weeks.

The MCS team became the Champion Challenger to internal teams as they were collecting twice the amount of early debt.

Through the use of MCS’ collections system, diallers and tracing tools we were able to offer attractive settlement mandates.

We used contingent commission rates with our employees. No collections meant no commissions which incentivised the team to increase collection rates.


MCS successfully started improving the early debt collections month on month from 0.18% increase to 0.88% until it achieved a 1.2% yield increase. This equated to 29% of payments activated and paid with a 73.80% kept rate.

The month on month lift in gross collections was possible due to the expertise and efforts applied by MCS, totalling 6369 calls, 1661 SMSs and 415 Emails.

We rapidly expanded the number of employees in a short period of time and the panel was decreased to 2 EDCs of which MCS now manages 76.37%.

We achieved a 90% Quality score which is a combined score done internally and by the client themselves.

Other case studies


Get in touch, we’d love to hear from you.

Get connected