Just the mention of debt collectors for a lot of people conjures up thoughts of knee breakers and old west gun-slingers.
We get it; our industry doesn’t have the best reputation. Being inside the collection industry, the phrase “don’t judge a book by it’s cover” comes to mind. For every negative complaint I see published, I could give you 100 examples of stories that had a positive outcome. Unfortunately, in the world of debt collections, these are not the stories that make the headlines.
The debt collection industry helps insulate our economy and brings economic benefits to both lenders and borrowers.
Whether it’s using a credit card, financing a car, or buying a house, credit keeps money flowing through our economy. It’s a great system when borrowers repay their debts and lenders treat their customers fairly. We, as debt collectors can’t do much about how lenders operate. But when borrowers fail to repay their debts we can step in and help both parties find a solution to their problem.
By recouping all, or a percentage, of the debt owed, we insure lenders from excessive losses.
And it’s that protection that enables lenders to keep their rates low and credit flowing. And while the benefits of debt collection for the borrower are less apparent, they are very real. By working with borrowers to find the best way to repay their debt, we help them protect their credit score and thus their access to credit. Not to mention the relief and burden of the debt being resolved and off their shoulders.
Part of our bad reputation comes from the heavy-handed tactics used by a minority of debt collectors.
But that minority is not representative of the rest of the industry and Federal agencies such as the Consumer Financial Protection Bureau (CFPB) are weeding them out. We train our collectors to listen to our borrowers to better understand their current financial circumstances and work with them to find a solution that is agreeable for all parties involved. The era of threats and empty demands has been replaced by a compliant and compassionate business model and we strive to change the face of debt collections.
Lets face it, a call from a debt collector will never be at the top of anyone’s favorite list, but debt collections remains, and will always be an intricate part of a growing and healthy economy.