November 22, 2005
What Collection Agencies Really Think of You!
I found these comments made by these various collection agency terminals. I think it highlights what these collection agencies really think of people that have debt. I have highlighted some of the grossest statements. Apparently these guys have absolutlely no clue what is happening with Americans out there. They have the general feeling you are all out there trying to stiff them.
I just want to start by saying that I think it was very irresponsible for the Post to run that sory.
Yes, unfortunately there are other companies out there who are similar to CAMCO, but there are far more companies out there who follow the rules and regulations set forth. As far as "embarrassing calls at work" goes, if the consumer would have paid their bills then they wouldn't be getting calls at work. If they would just answer their home phone then we wouldn't have to call them at work. I love the people that think we are wrong for calling people on the weekends and at work. I guess they feel we should just call only when they are at work so they can dodge our calls the way they dodge their bills.
Of course consumer complaints have risen. Did the Post bother to look at the number of bankruptcy filings or the record number of people not paying their bills? Do they, like every other consumer, think that since their account got charged off that the lending industry just should ignore it and eat the loss? You can't lump all debt buyers into the same category.
I would love to know what the Post does with their customers who don't pay their subscription bills. Would they consider selling their debts if it meant they would profit from it? Of course they would. Why don't we tell the Post to run a story about how great it would be for the American economy if people would just pay their bills? We all wouldn't see the high credit card interest rates. We wouldn't see expensive insurance rates or high interest car rates.
Run an article explaining that people shouldn't look for advice on how to avoid your bills and sit out the statute of limitations. It's no wonder the credit counseling industry is being exposed. It shows how ignorant the average human being is when it comes to their bills.
-National Accounts ManagerEast coast collection agency
First of all the debt buying industry exists because of the failure to pay a legitimate debt. This is an increasing phenomenon. We are because someone didn't!
The Post article is correct in it's statistics regarding growth. Those of us who have been in the business since 96-97 are impacted in many ways by the growth we are experiencing. Every part of the business has shown increases, from cost of inventory to cost of labor. The primary impact on cost however is the increase in responding to the negative PR that is amplified through the use of rapid E-technology. From compliance, training and required responses we have expanding budgets in the cost centers of our company. From online consumer web-pages setting out how to file useless disputes to government agency complaint forms on-line, consumers have greater access to technology. We are just catching up with the true cost impact of the new technology available to all consumers today.
What percentage of the increase in complaints were filed on-line and how many were generated because a consumer web-page told them to do so as a punitive response?
Are there companies that turn a blind eye to the laws regulating our industry? You bet!
Are we actively looking for them and reporting them to our associations? You bet!
In the 1980's, consolidation hit the Banking and Savings & Loan Industry predominately in the Southwest. When that occurred wildcat bank charters practicing dangerous business policies were closed by the Fed. Today banking is a compact industry. The recent expansion of debt buying is rapidly approaching the same fate. Whereas 5 years ago debt buyers were exempt from many government agencies because of their unique definitions, today they have been defined by the IRS, FTC and several others. This leads me to believe we will see the agencies and the competition close those companies who have come into it purely for the ROI of a hot new business.
-SVP/Recovery ManagerTexas collection agency
I think the article by Caroline Mayer captured a very interesting mood that's slowly growing in Washington right now. The collection industry has changed quite dramatically over the last decade. There are two things driving these changes. The first is that the banking industry is now less regulated than it's ever been. Banks are now entirely free to charge any interest rates or fees that seem appropriate to them. This in turn has lead to the second driver, which is the explosion of subprime debt in both the revolving credit and mortgage markets.
All in all this has been a very healthy set of changes for America. But there is a growing concern among some economists that the seeds of a major economic downturn are being laid. This concern is now a kind of quiet undercurrent in many private conversations within the capital.
Politics are like a giant pendulum and things have swung very heavily towards the direction of deregulation and free markets. But at the same time this has left workers with little job security and free to make mistakes of all sorts in how they use their credit. It's only a matter of time before the political pendulum begins to swing the other way and some enterprising politician finds a way to milk this insecurity and public sense of "being taken advantage of".
If you read Caroline's article carefully you'll see this undertone of awe and wonder (that such large changes have taken place so quickly) mixed with equal parts of worry and concern for the future.
-Government agency researcher
Using CAMCO paints the entire industry with a negative, undeserved brush. Also, it should be noted that most complaints are coming from people who have violated their obligations to pay their debts and try to use various governmental agencies to avoid those legitimate obligations.
-Alan BeshanyDirector of AnalyticsInsightAmerica
As a collection attorney and a sometimes debt buyer, I found little objectionable to the Washington Post article. In today's market, bad debt offerings are at least fully priced, subjecting investors to significant pressures for prompt collection of receivable accounts.
The article suggests that collection efforts directed on out-of-statute accounts is a problem -- and the article may precipitate additional legislation to protect uneducated debtors. The pressure for such legislation will grow after October of this year, when the new bankruptcy laws go into effect.
-East coast collection attorney
I just want to start by saying that I think it was very irresponsible for the Post to run that sory.
Yes, unfortunately there are other companies out there who are similar to CAMCO, but there are far more companies out there who follow the rules and regulations set forth. As far as "embarrassing calls at work" goes, if the consumer would have paid their bills then they wouldn't be getting calls at work. If they would just answer their home phone then we wouldn't have to call them at work. I love the people that think we are wrong for calling people on the weekends and at work. I guess they feel we should just call only when they are at work so they can dodge our calls the way they dodge their bills.
Of course consumer complaints have risen. Did the Post bother to look at the number of bankruptcy filings or the record number of people not paying their bills? Do they, like every other consumer, think that since their account got charged off that the lending industry just should ignore it and eat the loss? You can't lump all debt buyers into the same category.
I would love to know what the Post does with their customers who don't pay their subscription bills. Would they consider selling their debts if it meant they would profit from it? Of course they would. Why don't we tell the Post to run a story about how great it would be for the American economy if people would just pay their bills? We all wouldn't see the high credit card interest rates. We wouldn't see expensive insurance rates or high interest car rates.
Run an article explaining that people shouldn't look for advice on how to avoid your bills and sit out the statute of limitations. It's no wonder the credit counseling industry is being exposed. It shows how ignorant the average human being is when it comes to their bills.
-National Accounts ManagerEast coast collection agency
First of all the debt buying industry exists because of the failure to pay a legitimate debt. This is an increasing phenomenon. We are because someone didn't!
The Post article is correct in it's statistics regarding growth. Those of us who have been in the business since 96-97 are impacted in many ways by the growth we are experiencing. Every part of the business has shown increases, from cost of inventory to cost of labor. The primary impact on cost however is the increase in responding to the negative PR that is amplified through the use of rapid E-technology. From compliance, training and required responses we have expanding budgets in the cost centers of our company. From online consumer web-pages setting out how to file useless disputes to government agency complaint forms on-line, consumers have greater access to technology. We are just catching up with the true cost impact of the new technology available to all consumers today.
What percentage of the increase in complaints were filed on-line and how many were generated because a consumer web-page told them to do so as a punitive response?
Are there companies that turn a blind eye to the laws regulating our industry? You bet!
Are we actively looking for them and reporting them to our associations? You bet!
In the 1980's, consolidation hit the Banking and Savings & Loan Industry predominately in the Southwest. When that occurred wildcat bank charters practicing dangerous business policies were closed by the Fed. Today banking is a compact industry. The recent expansion of debt buying is rapidly approaching the same fate. Whereas 5 years ago debt buyers were exempt from many government agencies because of their unique definitions, today they have been defined by the IRS, FTC and several others. This leads me to believe we will see the agencies and the competition close those companies who have come into it purely for the ROI of a hot new business.
-SVP/Recovery ManagerTexas collection agency
I think the article by Caroline Mayer captured a very interesting mood that's slowly growing in Washington right now. The collection industry has changed quite dramatically over the last decade. There are two things driving these changes. The first is that the banking industry is now less regulated than it's ever been. Banks are now entirely free to charge any interest rates or fees that seem appropriate to them. This in turn has lead to the second driver, which is the explosion of subprime debt in both the revolving credit and mortgage markets.
All in all this has been a very healthy set of changes for America. But there is a growing concern among some economists that the seeds of a major economic downturn are being laid. This concern is now a kind of quiet undercurrent in many private conversations within the capital.
Politics are like a giant pendulum and things have swung very heavily towards the direction of deregulation and free markets. But at the same time this has left workers with little job security and free to make mistakes of all sorts in how they use their credit. It's only a matter of time before the political pendulum begins to swing the other way and some enterprising politician finds a way to milk this insecurity and public sense of "being taken advantage of".
If you read Caroline's article carefully you'll see this undertone of awe and wonder (that such large changes have taken place so quickly) mixed with equal parts of worry and concern for the future.
-Government agency researcher
Using CAMCO paints the entire industry with a negative, undeserved brush. Also, it should be noted that most complaints are coming from people who have violated their obligations to pay their debts and try to use various governmental agencies to avoid those legitimate obligations.
-Alan BeshanyDirector of AnalyticsInsightAmerica
As a collection attorney and a sometimes debt buyer, I found little objectionable to the Washington Post article. In today's market, bad debt offerings are at least fully priced, subjecting investors to significant pressures for prompt collection of receivable accounts.
The article suggests that collection efforts directed on out-of-statute accounts is a problem -- and the article may precipitate additional legislation to protect uneducated debtors. The pressure for such legislation will grow after October of this year, when the new bankruptcy laws go into effect.
-East coast collection attorney
# posted by Sponduliqs @ 2:09 PM 
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