On March 10, Colorado Attorney General’s John Suthers announced a settlement with three out-of-state debt lawyers, which included significant penalties.
As an industry, we are working diligently and expeditiously to ensure that all consumers are treated respectfully and legally. The Fair Debt Collection Practices Act and individual state laws regulating the debt collection industry are not recommended guidelines, they are the law. Rogue debt collections such as those cited by the attorney general, should be held accountable for their actions.
Despite what most people believe, we care very deeply when bad actors cross the line and break the law or treat consumers disrespectfully because they taint a profession and industry that, frankly, does not have a great reputation.
As the national trade association for the debt collection industry, ACA International remains steadfast in helping the vast majority of debt collection firms that legally and respectfully work with consumers. When there are complaints or questions, we work to resolve them efficiently and effectively.
We believe that complaint resolution helps consumers find answers to their questions and resolve their complaints, reducing the likelihood and expense of adjudication.
That’s why we are working with the Federal Trade Commission and the Council of Better Business Bureaus to better assess consumer complaints and ensure that, as an industry, we better understand and diligently address them.
According to the Council of Better Business Bureau’s (BBB) 2009 data, the collection industry resolved 85 percent of the complaints it had received, compared to the average of 73.8 percent among all industries tracked by the BBB. We are proud of our rate for complaint resolution, but we are pushing ourselves to do better.
Debt collection is a significant component of our nation’s economic health. Just as our nation’s businesses struggle to regain their economic footing and lawmakers continue to debate new ways to spark hiring and economic growth including tax breaks and incentives, recovering money owed to creditors is essential as well.
Typically, American businesses write-off more than $140 billion in consumer debt and our industry is able to recover more than $40 billion on their behalf.
Nationally, the debt collection industry directly and indirectly employs more than 300,000 people with a payroll of more than $11.5 billion. Not ironically, it is a growing industry despite the economy, illustrated by a recent announcement in Overland Park, Kansas, regarding a Colorado agency that is expanding its operation and adding 1,200 jobs.
Consumers do have important rights when dealing with a collector as they work to resolve their debts and ACA International wants to help.
For information on consumers rights under the law and how to communicate effectively with collectors to resolve debts, visit . Created by ACA International Education Foundation, is a valuable, comprehensive and straightforward tool that helps consumers finds answers to their important questions.
Rozanne Andersen is CEO of ACA International, which has more than 5,000 members nationally and abroad.
Mike Cosenza is CEO of Accounts Receivable Management Inc., which has a call center in Colorado Springs, Colo.
Matt Laws is CEO of Wakefield and Associates in Aurora, Colo.
Mike Shoop is president of Professional Finance Company in Greeley, Colo.
EDITOR’S NOTE: This is an online-only column and has not been edited.
