Advertisement
Ask the Experts: What Can Agencies do to Improve Media Coverage?
Ask the Experts is an interactive section where readers can ask direct questions to the experts at Kaulkin Ginsberg, the leading strategic advisors to the ARM industry – and a sister company of insideARM.com -- as well as other seasoned industry executives.
Thank you to one of our readers for our latest question:
Question: What actions can collection agencies take to combat the recent negativity they are receiving from the media?
Answer: (from Mike Ginsberg, President & CEO of Kaulkin Ginsberg)
Negative press about collection agencies is not going to go away -- especially in a down economy. Here are 5 things that can be done to combat the negativity portrayed by the media.
1. Be responsive to the press. When they call, try to respond as quickly as possible, as they are often rushed by their editors to hit a deadline so they can go to print. Most journalists have not been tracking the industry and therefore they lack a fundamental understanding of the issues they are covering. When a reporter reaches out, it becomes an opportunity for you to become an advocate for the industry. We need to correct any inaccuracies and challenge any misperceptions right away. Don’t assume someone else will do this. Get involved. Of course, keep in mind that when you do talk to a reporter, whatever you say is “on the record” and may be quoted. Be mindful of how your statements will look in print.
2. Adopt a zero tolerance policy toward violations and stick to it. Bad press is a reflection of persistent misconceptions about the industry. Don’t contribute to the stereotype. Agency executives must clearly define the rules with their entire staff and fully enforce them without exception. Be consistent with enforcement when collectors break these rules -- even with your top collectors. Make sure that collectors and managers are consistently respectful toward to the consumer (Did you notice I did not say debtor?). All violators must be reprimanded immediately and with severe action. Credit grantors must stop rewarding violators with new placements. Complaints should be addressed immediately. Complaints should be evaluated immediately and those with merit should be addressed with severe penalties such as loss of business or fines.
3. Train and retrain. Regardless of the size of your collection operation, invest in training your collectors thoroughly before they interact with consumers and provide complete supervision when they make their way onto the collection floor for the first time. Retrain to keep them fully informed on proper collection techniques. Be sure to train your collection management also, and don’t simply assume your best collectors make the best collection managers. Many don’t.
4. Support your local community. You are fighting negative perceptions each and every day. This will not go away, but one of the best long-term approaches you can take is to become a bigger part of your community by participating in local charitable and neighborhood efforts. Encourage your staff to get involved. Coach a team. Sponsor one. And don’t just focus on where you’re headquartered. Many problems take place at remote call centers. Build on your community awareness at a very local level in each of your call centers.
5. Support your association’s efforts. The industry’s leading associations must consistently and routinely regulate their members to prevent those who break the rules from maintaining their memberships or certifications. Zero tolerance at the association level is essential and public reprimand will make executives think twice about breaking the rules. It may cause some minor losses in membership dues but it will benefit the rest of the members and the industry at large.
Thank you to one of our readers for our latest question:
Question: What actions can collection agencies take to combat the recent negativity they are receiving from the media?
Answer: (from Mike Ginsberg, President & CEO of Kaulkin Ginsberg)
Negative press about collection agencies is not going to go away -- especially in a down economy. Here are 5 things that can be done to combat the negativity portrayed by the media.
1. Be responsive to the press. When they call, try to respond as quickly as possible, as they are often rushed by their editors to hit a deadline so they can go to print. Most journalists have not been tracking the industry and therefore they lack a fundamental understanding of the issues they are covering. When a reporter reaches out, it becomes an opportunity for you to become an advocate for the industry. We need to correct any inaccuracies and challenge any misperceptions right away. Don’t assume someone else will do this. Get involved. Of course, keep in mind that when you do talk to a reporter, whatever you say is “on the record” and may be quoted. Be mindful of how your statements will look in print.
2. Adopt a zero tolerance policy toward violations and stick to it. Bad press is a reflection of persistent misconceptions about the industry. Don’t contribute to the stereotype. Agency executives must clearly define the rules with their entire staff and fully enforce them without exception. Be consistent with enforcement when collectors break these rules -- even with your top collectors. Make sure that collectors and managers are consistently respectful toward to the consumer (Did you notice I did not say debtor?). All violators must be reprimanded immediately and with severe action. Credit grantors must stop rewarding violators with new placements. Complaints should be addressed immediately. Complaints should be evaluated immediately and those with merit should be addressed with severe penalties such as loss of business or fines.
3. Train and retrain. Regardless of the size of your collection operation, invest in training your collectors thoroughly before they interact with consumers and provide complete supervision when they make their way onto the collection floor for the first time. Retrain to keep them fully informed on proper collection techniques. Be sure to train your collection management also, and don’t simply assume your best collectors make the best collection managers. Many don’t.
4. Support your local community. You are fighting negative perceptions each and every day. This will not go away, but one of the best long-term approaches you can take is to become a bigger part of your community by participating in local charitable and neighborhood efforts. Encourage your staff to get involved. Coach a team. Sponsor one. And don’t just focus on where you’re headquartered. Many problems take place at remote call centers. Build on your community awareness at a very local level in each of your call centers.
5. Support your association’s efforts. The industry’s leading associations must consistently and routinely regulate their members to prevent those who break the rules from maintaining their memberships or certifications. Zero tolerance at the association level is essential and public reprimand will make executives think twice about breaking the rules. It may cause some minor losses in membership dues but it will benefit the rest of the members and the industry at large.
Care to Comment?
(Please read our comments policy first.)
Related Resources
News
Analysis
Publications
Research
Advertisement
Advertisement
Comments
Comment from Collection Veteran Since 1964 on June 19, 2009 at 3:13PM EST
I have been in this industry over 40 years. Some may say debt collection is an ancient subject and I , an ancient man, have studied and practiced it for over 40 years. Those remaining in this industry know of me. While your reminders are important, there is one statement I and most of us veterans hear: There are some bad apples. To that I say bull. It is not the fruit of an apple tree that matters. It is the roots that sustain it. I know of my company and many others who dedicate time and money to local and national causes.Have continous training programs and try to the right thing rather than thigs right daily. We remain silent of them until all heck breaks loose. To those who have not spent time knocking on doors to collect money let me suggest a book that should be referenced every day in your training programs: "War As I Knew It-George S. Patton Jr." Just remove the military terms and abide by the advice. During my over 15 years in charge of collection agencies at three national banks, I never had to fire any angency because there is more than what models say. It is and will be a people business. It is a partnership. However, most creditors do not have collection veterans any more. They have model data evaluations. I say can't pay, won't pay, or will pay has not changed.
Comment from Sam Small on June 21, 2009 at 12:20PM EST
To combat the sensational media is an uphill battle. I don't think that the above recommendations will change the mindset of the media that is not so much interested in truth as they are interested in sensation. You can have 99.99% of the collection industry doing the right thing they will jump to report on the remaining .01% that are doing the wrong thing because this is sensational; they will ignore the 99.99% that are doing the right thing because doing the right thing is the usual and it is not sensational.
Comment from DONALD DALY on June 22, 2009 at 7:24PM EST
I too have been in this industry since the mid 60's. I can recall during bthe 60's and 70's we had the state and local government proclaim a consumer credit week statewide. Collection agencies were much smaller then but we demonstrated what our results in recovery translated to the paying consumers in the form of their cost of goods and merchandise. It was a time for the entire industry to blow their horns and give those that listened some favorable information about an unfavorable industry and helped offset the complaining of only the non-payers. That message annually helped portray the non payers as the hoodlums and in as much less people defaulted whereas today without the message there is no shame partly because there is no message. Bring back statewide consumer credit weeks and get the entire industry involved.
Comment from Stephanie Eidelman, Publisher of insideARM.com on June 23, 2009 at 11:25AM EST
Sam Small makes an interesting point. As we all know, in order to be viable, publications (or TV shows) need readers, and the problem is that readers seem to be most interested in the sensational. I will say that in our experience at insideARM, industry insiders tend to act in the same way as consumers of general media -- we get enormous readership when we publish high profile negative stories. We also go out of our way to write/publish good stories about the industry; they don't receive nearly the same reader attention. We would welcome ideas on positive stories that we should be following (email us at editor@insidearm.com)-- and we would then of course welcome your readership!
Comment from John McNamara on June 23, 2009 at 1:54PM EST
Some industry's are just hard to love. Ours is certainly one of those, unless you're like me, and have been imbedded in it for decades.
Every job has dignity, and ours is no different. Communicating that to your collectors is a great way to start.
That said, it is critical to train and be ready for the day when the media approaches. Knowing how much we contribute to the economy and being able to articulate that is critical.
Running a clean shop and being able to look yourself in the mirror is critical.
The price of literally everything is cheaper for consumers, because of us.
The industry has given all of us steady paychecks. We owe it to the industry, to be ready for that day, when in a short 30 seconds, we can show the industry for what it is, or blow it and play to the stereotypes.
At the very least adopt a media policy so in the event of contact, you do no damage.
Comment from Fred Landrum on June 26, 2009 at 5:18PM EST
I have learned a valuable lesson in the past few months. First, align yourself with those in your communities that will get to know you and your organization from a positive perspective. It is important to involve the local Chambers of Commerce, township officials and the charities. They know the press better than you do most of the time and help you get “good” press.
Secondly, be sure and let the press know what you’re doing to help the community, e.g. adding jobs, doing charitable and volunteer work etc. We are active with the Red Cross, Homeless Veterans group etc.
I doubt that we will ever completely change the public’s perception of the collection industry, but you can certainly enhance the public’s perception of you and your company by being proactive. Unfortunately, this is more difficult in larger media markets, but then again, there’s a lot more “exciting” news for the reporters to go after in those venues.