Changing the Debt Collection Industry, Is it Possible?

It has never been more difficult than it is right now to be a accounts receivable collection agency. These days, more regulations exist than ever before, and there are a great many rules and laws related to compliance as well. Making matters worse, there are many regulatory agencies out there that seek to find and punish anyone who makes a mistake or breaks a regulation. There are also law firms that operate with the sole purpose of going after debt collectors who have made small, harmless mistakes. Fortunately, however, collection agencies do not have to stand for or put up with this harsh environment; instead, there are things they can do to create a fairer climate for themselves.

One thing that modern debt collectors and the companies for which they work can do is to join and/or support business associations that were created with the goal of stopping injustices in the debt recovery industries. Such associations include ACA International Incorporated, which is the trade association for credit and collection professionals. Debt collectors are encouraged to form or join a local chapter of this group or others like it and to be as involved as possible in making positive differences for the debt collection industry.

In addition to becoming involved with ACA International, debt collectors and collection agency services companies may also want to consider getting involved with other trade associations across the sectors in which they work. This might include medical sectors, telecom sectors, and more, and the greater the number of trade associations collectors can work and partner with, the better.

Debt collectors are also encouraged to contact state and federal legislators to voice their concerns and their proposals as to what can be done to change problems and issues within the debt collection community. A good way to really make a difference is to develop a work advocacy group that can discuss the issues affecting the industry and potential solutions and then put these into a large volume of letters to try and affect change.

Change is something that is desperately needed in the debt collection industry, but it’s not going to happen overnight. It will take lots of effort and concern from people who are involved in the industry, but if these people work together, it can happen!

Debt Collectors and Cell Phones

People who have to deal with debt recovery collection activity on a regular basis often complain about the frequent amount of phone calls they receive. While debt collectors have always had a reputation of calling often, this problem has gotten worse due to the fact that so many people now have cell phones, which are carried with them 24/7, making someone much more likely to notice the constant calls.  

What many consumers don’t realize, however, is that there are laws in place that dictate when, how, and how often debt collectors can call them.  In fact, under the Telephone Consumer Protection Act (TCPA), debt collectors are not even allowed to call or text cellular phones without express permission from the consumer. Furthermore, autodialed collection calls to cell phones are generally not allowed and can be punishable by $500 per violating phone call (or more!).

While consumers like this law and enjoy the fact that they can simply do away with a landline, say “no” to debt collectors calling them on their phones, and then stop the communication connection, debt collectors are generally not very happy about it, for obvious reasons. As a result, many debt collectors have been petitioning the Federal Communications Commission (FCC) as of late to have these restrictions loosened, though the agency hasn’t shown any signs of changing its mind.

Consumers who are dealing with non-stop calls, calls to their cell phone that they didn’t authorize, or calls that they suspect to be illegally auto-dialed are encouraged to contact consumer lawyers, which could lead to litigation for debt collection agencies and potentially the businesses that use them. As such, modern businesses need to be careful that their debt collectors are following federal regulations and protocol, as difficult and frustrating as it may be to do so, and consumers need to be aware of their rights to ensure they are not being violated.  #DebtRecoveryEfforts