ACA Staff, Members Testify Before NY Assembly Committees on Behalf of Collectors
Two ACA members in New York – Eric Najork and Lynn Goldberg – joined ACA International Executive Vice President and General Counsel Rozanne Andersen on May 14, 2009 to testify on behalf of the credit and collection industry before members of the New York State Assembly.
The trio attended a “Committee Public Hearing to examine how the State of New York can best protect consumers from unfair and deceptive practices in debt collection and debt management industries.” Andersen, Najork and Goldberg delivered their comments to the Assembly Standing Committee on Consumer Affairs and Protection, the Assembly Standing Committee on Judiciary and the Assembly Standing Committee on Banks.
The public meeting was called in response to a rise in consumer complaints against debt collectors according to the Federal Trade Commission (FTC) and the New York City Department of Consumer Affairs (DCA).
“Given this background, ACA respectfully submits the primary issue before the Committees and the credit and collection industry is how to reduce consumer complaints against debt collectors,” Andersen told the assembly in her prepared comments. She and Najork, the New York State Collector’s Association’s (NYSCA) First Vice President, and Goldberg, the NYSCA’s Past President, summarized ACA International’s position on the issue:
“ACA suggests the solution may not necessarily reside in additional legislation and regulation. Litigation against debt collectors as well as state and municipal legislation and regulation have increased while at the same time the FTC, States’ Attorneys General, and state regulators are witnessing a rise in complaints. As a result, there is no empirical evidence to show providing consumers greater opportunities for litigation and imposing greater requirements for debt collectors when attempting to collect will decrease the number of complaints filed by consumers against debt collectors.
“ACA respectfully submits greater opportunities for litigation and unreasonable legislative and regulatory burdens on the debt collection industry cause more complaints to be filed because they ultimately erode the single most important element for debt collectors to properly collect debt and for consumers to understand their rights and obligations – communication. Consumer complaints can only be reduced if the communication between debt collectors and consumers is nurtured and not diminished.
“ACA believes many of the proposals before the Committees will result in a diminution of collection in the State, the layoff of workers in New York, and will fundamentally augment the credit and collection cycle to the detriment of consumers in terms of obtaining credit opportunities to purchase goods and services in the State. ACA also believes the proposals will create greater consumer confusion, complicate the already difficult legal landscape with which debt collectors operate, and will all but eliminate opportunities for debt collectors and consumers to communicate.”
The hearing was held to address proposed legislation, and ACA and the NYSCA will continue to closely monitor all future developments. The full comments by members of the NYSCA and ACA are available on the ACA International Web site.
Well spoken!Finally a rebuttal that is rooted in a common sense approach to more intrusive, unneccessary legislation.
It’s been my experience that indeed straightforward communication with the debtor(s)gains quicker positive results than heavy handed “old school” approaches.
Bravo ACA!
My first concern would be to evaluate the agencies/organiations that are the leaders in violations. This topic of consumer disputes has been a hot topic for the past three decades. Laws have been passed, then amended, then re-admended to a point of overkill. Early detection, investigation and resolution of violation is what seems to be lacking. If the NYS Attorney General can prosecute extortion I would sincerly hope that the NYS Attorney General knows who the primary violators of consumers are and where they are located. I cannot recall a single headline where a violator of the various consumer protection laws has been penalized. Keeping the legislators busy writting or rewritting laws is nothing more than busy work. If the disputes filed by consumers are valid it is time to round up the outfits and the hoodlums who give this industry a black eye and hang um high. Put them out of business, put the news on every newspaper headline in the state including the company and indiviuals responsible. NYS is involved in a 3 month crusade to identify those who do not buckle up, I’d like to see a similar crusade to root out constant and persistant violators and I would think the A.C.A. could have looked at this issue along with their fear of less communication!
I believe we all in the debt collection industry want to avoid additional legislation.
The hyperlink on this page refers to NYC legislation and the licensing of debt buyers and collection attorneys as debt collectors.
I believe Mr. Daly has the correct approach and that is to encourage stricter enforcement of existing laws.
Most of the debt collection industry is in compliance with FDCPA and NYS laws. An effective detterent to these in appropriate activity would be stricter enforcement of existing laws.
Also, if there is any extention of legislation it should be to include debt buyers and attorneys and not exclude them as they are part of the problem
We’ve all heard it before: “The love of money is root of all evil”. Certainly, there “bad apples” in EVERY industry. Debt collections is no different. Does that mean we’re all bad? Of course not. BUT! We either have to GET SERIOUS about self-compliance or stop whining about more and more regulation! There are “bad” agency owners that have the “do whatever you gotta do to get the money on the board” mentality that MUST be put out of business. However, even if you are a collector at one of these boiler rooms, YOU and only YOU are responsible for whether or not YOU break the law. It’s a decision! Just like it’s a decision if I get behind the wheel of my car drunk and subsequently get caught. Personal accountability is the answer! So long as collectors get rewarded financially (i.e. bonus checks) many will do and say ANYTHING to take home that fat bonus check. That’s our reality in this industry. I’ve been at it for 14 years and as much as I don’t like to see more regulation, guess what? You can count on it until WE ALL get serious about self-policing our offices and booting out the collectors and managers that foster this behavior. Until that happens, sad but true, I don’t blame the states for imposing more and more regulation. A fish rots from the head down! If there are FDCPA violations occurring in your office it’s because owners don’t care. I know a few good compliance people that try to stop things but are blocked by upper management and owners because the collectors that are the target of complaints and lawsuits are in many cases, their top performers. And so the vicious circle of the debt collection industry goes! Until this crap stops, expect more and more government regulation. WE ARE BRINGING IT ON OURSELVES!