DBA
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I was speaking with an industry professional who asked if I was going to the DBA retreat. No, I am not going. However, I have heard that the DBA wants to corner the market on certifying debt buyers and then become the go to folks with the FTC and other regulatory agencies. Has anyone else heard anything about this?
John, I’m not sure about the second part (“…and then become the go to folks with the FTC and other regulatory agencies.”), but DBA definitely is launching a debt buyer certification program.
In fact, we’ve covered it: http://www.insidearm.com/daily/debt-buying-topics/debt-buying/dba-international-appoints-debt-buyer-certification-task-force/
I have spoken out against their program in the past. As if they and their members hold the key towards good business and integrity. Many of them are great folks but…not all.
Otherwise in my conversations I was hearing that they have launched this and will have a strategy to reach out to government to set the standards or some such nonsense. I guess we will see.It’s just another “product” for the association to peddle its members. ACA has the same thing. That’s the #1 problem with all industry associations (no matter the industry really – not just collections or debt buying), they attach themselves to your company/industry like a leach and want to gorge on your cash until they explode.
Here’s the problem – ACA and DBA – related industries need a free-market self-certification program to prevent the government stepping in. Group associations, which set standards and then certify companies to meet those standards, are good solutions. Maybe there is an issue with cost, but it also helps to prevent government oversight in the long run.
Don’t like it? Get some friends together and form your own certification board.
Or go uncertified and without credibility when everyone else has it.
That’s a wonderful idea Ryan! I think we’ll create the International Professional Accounts Receivable Management Master Certification for ourselves. We’ll make a brochure asking potential clients to check and see if their current agency has been certified by them, but we’ll only certify ourselves.
MUAHAHAHAHAHA
Let’s protest the DBA by not going to the Vegas retreat next February. Wait, nevermind Aria was too much fun.
Certifying debt buyers will not keep the government from stepping in. It is a complex situation.
I like your idea Ameripay. Lets do it.
It looks like the Consumer Financial Protection Bureau (CFPB) would be the entity to watch on this:
I’m sorry John but we cannot certify you at this time. Only one company seems to be able to meet our rigorous standards.
That is funny. Good post. Probably right on point.
There does need to be a standard. Many Buyers do not care about laws or contracts. People (not companies) are selling portfolios they don’t own. The typical way to exclude these people from participating is money. Creating a financial threshold of say $200K-$500K of capital would eliminate a large portion of buyers from receiving a certification.
What will also reduce the number of problems is already coming down the pipe. Issuers are requiring buyer approval and agency approval. There are already companies and principals that have been exclude for resell. The list will continue to grow.
I think that idea, of the financial threshold is not workable. There are plenty of attorneys and smaller reputable shops that buy small files and they should not be shackled by a rule like that. At the same time, there are a ton of disreputable sellers and buyers out there and they need to be stopped. How to stop that and not infringe on other people’s rights seems tricky to do.
Its good to see all of the comments. I might point out that the amount of capital does not necessarily translate to honesty. Most debt buyers and sellers are honest. How will certification keep folks honest? Once a debt buyer is certified will the DBA be responsible if they commit a fraud? Can they be removed from certification? What would that involve? If an industry standard is put out there how can it be fair if only one organization does it? How many members of the DBA today would achieve certification? I can think of a few who might who probably should not. I am just throwing these things out and enjoy the response.
I don’t know who the head of that board is but I have emailed the same questions to some board members. I was just wondering what thoughts others may have.
I think a plaque to hang on my office wall saying we’re DBA certified is less useful than hanging Big Mouth Billy Bass in its place (in case you’re unfamiliar: http://en.wikipedia.org/wiki/Big_Mouth_Billy_Bass ). At least Billy can dance and carry a tune.
We have been in business for 12 years and purchase strictly in Delaware. We are small, yes, but we conduct extensive due diligence on each company, portfolio and business principal prior to entering into a sales contract. My business partner (attorney) reviews all our documents and contracts. As CEO, I take signing my name on a contract for goods very seriously.
My personal and corporate reputation is my calling card. I am proud to say we have a pristine reputation in this state and in our courts.
The type of financial threshold mentioned by Thor in an earlier post is not feasible for our company. We would be out of business overnight.
I think Mattea is right on in her statement. There are a lot of reputable businesses out there (many of which are collectors at one point trying to go big) that start there early careers buying small portfolios. They should not have their rights infringed upon because of their limited capital. Unfortunetly we dont need a threshhold or standard on portfolios or aquisitions but on ethics. I know personally many larger businesses and sellers who are less ethical and morally ambiguous then some very small ones.
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