As a business owner, I often learn about my competitors from a distance. I don’t want to be revealing all my business secrets or getting too friendly, right? But at Columbia Ultimate’s Art of Success last week, my whole outlook on competitor relationships was shaken.
So, where does this leave us and what does all of this mean? Clearly, the TCPA and the interpretation thereof are in flux. Creditors and debt collectors have come to rely upon the 2008 FCC ruling as a means in which to establish prior express consent under the TCPA. Mais now holds that neither a creditor nor a debt collector have consent to call a cell phone number via automated dialing equipment or to leave prerecorded messages under the TCPA merely by obtaining a phone number provided on a credit application.
The latest rumblings about the debt collection and accounts receivable management industry are a mixed bag for credit and collection professionals.
A court recently ruled that calls to mobile phones must be done manually and not via any system with the capacity to make automated dials. The challenge itself is quite simple: How does an organization, charged with recovering debt from consumers, make enough “manual” phone calls to a growing mobile population to reach enough consumers to actually make any money?
The CFPB has three advisory boards that steer its thinking on financial regulation: one that is comprised of consumer advocates (naturally) and two made up of small banking interests. There is no board for large financial institutions.
There is also no advisory board for other companies, like debt collection agencies. An article in the Washington Post partially explains why. But still: how can the industry gain credibility and influence when other similarly sized industries seem better positioned?
Put yourself in the shoes for a moment of a large national creditor. You spend millions of dollars a year reimbursing your legal network firms for process serving expenses but you are completely blind as to HOW, WHAT, WHERE, WHEN and best of all WHO are the process servers. You know that the FTC looked at process serving in 2009 and this February the head of the CFPB’s Enforcement Department uttered the words “process serving” as an area of interest in his speech at the DBA conference. You realize that you have to establish compliance standards for process serving but you really do not know much about process serving as you do not have any direct relationships with collection industry process servers.
I was surprised when DBA International asked me to write an article for DBA the Magazine about business success. There are so many factors that lead to business success. But I whittled the list down to six core concepts.
One pricing and deal structure are determined, arguably the hardest question an owner/operator will need to answer when it comes time to sell is what role he/she will play post sale.
There is currently some unique legislation that is before the General Assembly of Tennessee that will benefit debt buyers and banks in TN if it is passed in the next few weeks
In each of the past two years, insideARM.com has conducted a survey of the ARM industry to better understand how these companies are utilizing debt settlement providers to increase collections. In each of these surveys, roughly 50% of survey respondents indicated that they now engage debt settlement providers as part of a strategy to locate collection accounts and increase collections through the use of these third party service providers. While this adoption is significant, still, roughly half of the firms responding to the surveys each of the past two years indicated that they still did not work with debt settlement companies as part of their collection strategy.