California Association of Collectors Votes to Stand Pat on ACA Membership Ties
The ACA bought some time to deal with member concerns after a vote this week at its largest state affiliate. California collectors were unhappy with recent ACA moves and threatened to drastically alter ties to ACA.
Members of the California Association of Collectors (CAC) overwhelmingly passed a motion to table for one year an amendment to its bylaws that would allow its members to choose to become an ACA International member, rather than requiring mandatory membership in ACA when they join the CAC.
CAC leaders proposed an amendment to their organization’s bylaws that would have greatly altered its ties with ACA, the largest association of accounts receivable management professionals, in response to recent moves by ACA that California members considered wasteful and unnecessary (“Debt Collector Registry and Dispute Resolution Proposal May Alienate Prominent ACA Affiliate,” Aug. 6).
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The vote came following a three-hour meeting attended by ACA President Karolyn Rubin and President Elect Martin Sher, in which Rubin told CAC members that ACA heard “loud and clear” their concerns. She also promised change and to take their concerns back to ACA’s Executive Board.
Lloyd Dix, vice president and general counsel of Union and one of the co-authors of the bylaw amendment, told insideARM that CAC members wanted to give ACA a chance to fulfill its promise before taking further action.
“We wanted ACA to have an opportunity to act on our concerns,” Dix said.
CAC is ACA’s oldest affiliate; ACA bylaws require members of affiliate associations to be ACA members. If the amendment to CAC bylaws had passed, ACA previously told insideARM that CAC would no longer be the official state unit for ACA.
Jerry Greenblatt, president of El Cajon, Calif.-based Inland Capital Services, told insideARM that he supported the bylaws amendment, but agrees that ACA should be given a chance to address CAC members’ concerns. Likewise, members should be fully informed before it votes.
“They bought themselves some time to earn back the trust of the members.” Greenblatt said of ACA. “The relationship between the ACA and CAC members has been damaged severely over the years. And I think they have a long road ahead of them. But all is not lost. If they keep their promises and they work toward honest and transparent communication they can get back in touch with the members and back on focus of ACA’s mission.”
CAC’s motion to amend its bylaws was fueled by a variety of recent actions taken by the ACA without membership input, Greenblatt said. But the ACA’s national board of directors’ decision last July to give ACA’s executive committee the authority to explore and create, if viable, a national debt collector registry and complaint resolution program without input from the general membership led directly to the motion to amend CAC’s bylaws. Some members said ACA should not be in the regulation business and that they believed that ACA has strayed from its mission of being an industry advocate.
“The (self-regulatory organization) was the straw that broke the camel’s back,” Greenblatt said.
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Comments
Comment from DONALD DALY on September 25, 2009 at 11:28AM EST
It is too bad it took this type of activity to get the attention of the leadership of A.C.A. The A.C.A. seems to have gotten to "FULL OF ITSELF" in the past decade or more, seemingly forgetting who they represent and instead taking a partisan approach to issues that were never discussed or agreed to by it's membership beforehand. If these leaders have any sense they will get back to their basic responsibilty or see more erosion within their ranks.
Comment from John McNamara on September 25, 2009 at 11:42AM EST
The FTC in particular and regulators in general are watching complaints and are very focused on the gross number of complaints. Most collectors know that if you divided total complaints by the number of attempts or contacts the result would be a failure rate that would make Six Sigma look sloppy.
However, regulators are focused on the gross number of comlaints. Unless we work together to reduce that number, we invite more oversight.
Furthermore, we need to find a way to drive unlicensed, rogue agencies out of business. They disproportionately contribute to gross complaints.
Comment from Rodney Meeks on September 25, 2009 at 12:55PM EST
I believe the majority of our members work very hard on complying with state and federal laws. The rogue agencies that we see on Dateline will never join the ACA or comply with any SRO. Self-regulation, alternative dispute resolution, and a collector registry would only add to the cost of running our businesses, and create another burden. California has done an excellent job of addressing licensing with its state legislature, and was successful in sunsetting California's licensing bureau almost 20 years ago.
Comment from FR. on September 25, 2009 at 1:30PM EST
I agree with California's concerns regarding ACA's lack of membership input. However, let there be no doubt that if we do not work together as an industry to regulate ourselves the government will. I have no concerns with a national collector registry. I do not want anyone working for me that is not or does not want to be professional in what they do.
The issue is simple in my view. Do you want the government to regulate us or the ACA?
Comment from Anonymous on September 25, 2009 at 1:56PM EST
The complaints will never stop. No one enjoys getting calls or letters from collection agencies - and there is someone in the government that listens to complaints, so why not vent it out over there.
Comment from Joe Ramos, Blitz on September 25, 2009 at 2:02PM EST
Along with the concerns already expressed, I am concerned with the control ACA will have over the industry and the members. If ACA gains more control, there is a risk of alienating the mid size and small agencies, causing them to go out of business. Not to mention that you have controls in the government and in ACA. That is a double wammy
Comment from Wendy P. Marcisofsky on September 25, 2009 at 3:37PM EST
As an affiliate member, I, too am troubled by some recent decisions of the international group. The increase in annual affiliate dues to me as a "single employee" company has substantial impact - especially when an affiliate company like mine with one employee pays the same dues as an affiliate with hundreds of employees. Manytimes, I have asked questions about this kind of matter with no conclusive response that I am comfortable properly responds ....even years ago when I asked about the % of women owned agencies or even women managed agencies, I was pretty shocked that the information was not available. As an additional comment or question, is the annual balance sheet and financial statement made available to the members?
Comment from MJ on September 28, 2009 at 11:27AM EST
The CAC did the right thing. Splintering off will only create industry-perception havoc, but allowing the ACA to run its own agenda without member input is unacceptable (think "taxation without representation"). Deciding to give the ACA time to address member concern while keeping the ACA whole was the right choice. If, in the end, the ACA goes left when the members wanted it to go right, then at least the CAC gave them the chance (think "Boston Tea Party" and "American Revolution"). When all is said and done, however, if the CAC and ACA don't agree the FTC will step in and impose tough and unreasonable regulations, whether we like it or not (think "the Redcoats are coming!). Let's all hope cool heads prevail.
Comment from Abe on November 5, 2009 at 2:34PM EST
As a small N.Y. collection agency in business for 18 years CAC was absolutely correct. All agencies but especially small ones are feeling the economic pinch and the extra costs of regulations are onerous and plain unfair. ACA needs to focus on representation for the entire industry, operational cost effective solutions, and an approach to dealing with the rouge agencies. ACA needs to focus and to protect the majority who operate professionally and do what’s right within the industry.