Debt Collector Registry and Dispute Resolution Proposal May Alienate Prominent ACA Affiliate

Comment from Dan Kohlenberg on August 6, 2009 at 11:15AM EST

It's the power and abuse of power of which I fear. A company with a grudge can harm an individual just by filing false complaints that take too much time to resolve. It happened to me when I left a major Broker/Dealer to open my own independent practice. I therefore could not work and it took two years for the NASP to determine I did nothing wrong. On the positive side I got into this industry.

Comment from DONALD DALY on August 6, 2009 at 11:38AM EST

ACA SEEMS TO BE STRAYING FROM IT'S INTENDED DESIGN AND PURPOSE TO BECOME A BIGGER AND MORE COSTLY ENTITY. LET THE GOVERNMENT RIDE HERD ON THE VIOLATERS, ACA SHOULD STICK TO IT'S BUSINESS.

Comment from Larryq on August 6, 2009 at 11:39AM EST

It is apparent that our board is conflicted regarding the direction ACA should take at this time as the narrow vote indicates. However, Mr Dix and Mr Greenblatt are proposing that we continue business as usual while the ACA is trying to give the government (both state and federal) an option that allows them to vote for further control while allowing our industry to choose those controls.

Even some of the smallest agencies that I talk with have accounts from several states and have concerns about increased regulations in those states. Politicians want to take action and they will. ACA is trying to give them a way to do that instead of having the politicians in our 50 states take their own shots at us.

I strongly suggest that it would be to the benefit of every ACA member if ACA gives our legislators a bill to vote for that we, as members, propose to clean things up. Our industry is a political pawn right now. Attacking us will win votes for these politicians. We will be attacked with legislation. If we sit back as these California members suggest, we will get legislation that costs us money, is different in every state and cleans up nothing. If we do the work for the legislators through the ACA, we may just find legislation that is cost effective and could even become uniformly accepted throughout our areas of operation.

Stop the attacks on our OWN organization and spend your time improving the proposal.

Comment from john pratt on August 6, 2009 at 11:39AM EST

I agree with folks who say the ACA should not be in the regulation business. It is about bucks for the ACA and maintaining their own already weakened credibility in the collection industry. If the ACA had influence with its members it could achieve what it wants without adding more cost to its members. Recent responses by the ACA to collection problems have been weak. The response to Datelines questions about an offending agency in Buffalo was weak as was any follow up. Its like the ACA wants a problem so they can provide an answer.

Comment from MAJ on August 6, 2009 at 11:49AM EST

"So far it has told members that the Debt Collector Registry would require all entities and individuals who fall within the definition of debt collector under the Fair Debt Collection Practices Act (FDCPA) or state law to register as a debt collector and pay an annual registration fee, which has not yet been determined. "

Without debt collectors, where is the ACA. We do not need more regulation and se certainly dont need to pay $$$ in order to collect $$$. This is the most ridiculous idea yet and is nothing more than a ploy to make more money off an already struggling industry.

A million dollar office in DC?????????????????????????????????

What planet are these people living on?

Comment from sd1950 on August 6, 2009 at 12:46PM EST

The ACA has lost it's way and purpose. The CAC in a much better run and active organization than the ACA. ACA which was formed as a spin off of the CAC years ago needs to listen to its members, not the executive committee of the ACA that has their own agenda. The ACA has detoriated ever since Mr. Johnson left the helm. Someone needs to rein in the ego's of the executive committee.

Comment from sj on August 6, 2009 at 12:55PM EST

Nothing like hand delivering a potential class action lawsuit to the particularly overzealous and litigous legal community that prey on Debt Collectors. How many of us receive unjustifiable complaints and settle them to avoid legal expense?

Comment from T.Stockon on August 6, 2009 at 1:21PM EST

As an agency owner and a newly elected member of ACA's Executive Committee, I am accutely aware of the issues facing my business and my association. I can only say at this point that decisions that have been made have been made in the light of day and by proper vote of the board of ACA. Whether I agree with all past decisions or not they are done and past. My commitment to my business and my association requires that I engage in the disccusion in a constructive manner and do my best to contribute in positive ways to the dialogue going forward. We are a long way from a solution on an alternative dispute resolution process or collector registry. Those of us on the Executive Committee will do our best to evaluate what is ahead and negotiate for the best possible outcome for our members. I don't know at this point what we will get from the process but I am glad that we have a seat at the table with Congress, the FTC and State Attorneys General as they consider how to reduce the complaints against our industry. Our willingness to consider an alternative dispute resolution process and collector resitry was the ante we had to put up as an industry to get that seat. I am confident that ACA Staff and ACA Executive Committee both have the best interest of all of our members at heart as we navigate our current reality. I appreciate the support of the members who support our efforts and the good will and benefit of the doubt of those who may disagree.

Comment from Sandy Lubin on August 6, 2009 at 1:26PM EST

It seems that ACA just want's to be bigger and more inportant. What about all the agencies that are not members of ACA will they have to join the regestry as well. We need to work with the legislators to draft a bill that works for the consumers and for the collection industry.

Comment from Sam Small on August 6, 2009 at 1:31PM EST

Larryq wrote: "Our industry is a political pawn right now. Attacking us will win votes for these politicians. We will be attacked with legislation."

This is where our country is at. The lawmaker's decisions are not based on what they believe is right or wrong - it is based on "What is in it for me (as a politician)".

Comment from Lori Porter on August 6, 2009 at 2:56PM EST

As a small agency owner, having to pay even more fees to sign a registry and pay for arbitration, for those in the industry that provoke the need for arbritration, is unbelievable. The last thing a small agency needs is more fees. ACA fees, Unit fees, State fees, City fees, now fees for a registry? Perhaps the ACA believes themselves to be politicians instead of an industry leader, in which they were intended to be? Do you even remember who you represent? Did you forget about all the "little" guys that are treading water? Represent us, don't put us out of business!

Comment from sd1950 on August 6, 2009 at 3:02PM EST

Larryq: The CAC has never sat back and done nothing and is very active as an association. The ACA needs to concentrate on representing the industry not become regulators. If the ACA wants to become regulators fine, then collection agencies need to find an association that will represent us and get involved in the necessary elections to bring responsible government at the State and National level. I have been very active politically for several years and getting involved works.

I would think the last thing the ACA would want to do is sit down with the likes of Barney Franks. When I look at what he has done for the housing industry, lord help us if he gets involved in the collection industry.

Comment from Anonymous on August 6, 2009 at 4:23PM EST

There will always be debtors avoiding payment and they will NEVER be regulated.

Credit is here to stay REGARDLESS of any government intervention. The answer lies in who's credit is accepted in the first place.

So be it if there are more "have nots" in this world. The government can't force lenders to extend credit to everyone.

Regulation won't turn deadbeats into good payers. Consider the number of Chapter 7 bankruptcies.

Let's just make sure we're all doing things right...

Comment from anonymiss on August 6, 2009 at 10:13PM EST

Isn't the ACA just part of one big debt-collection conglomerate, just like Attorney General Swanson described the NAF? Doesn't the ACA recieve membership fees from it's members? I see the same problem if not a worse one. How can the ACA say it does not have ties to the debt buyers and collection industry?

Comment from Tom Kirschner on August 6, 2009 at 12:20AM EST

I am particularly offended by comments from "our" ACA representatives that put our industry in poor light:

Andersen... contends that ...ACA’s SRO program [it] could bring “professionalism to the industry not seen in the past.”

So, now "our" own representatives are portraying us as un-professional? With friends like these we're sure to be on the hit list for more regulation.

Additionally, do they really expect the truly bad players in the industry to register, submit to arbitration or whatever scheme will be developed to regulate us?

I guess that leaves us less/un-professional members to carry the financial burden of ACA's empire building agenda.

Comment from Anonymous on August 7, 2009 at 9:10AM EST

I'd rather see a self regulated additional fee for a realistic solution as an alternative to what ever the Federal and State government would create and impose!

I'm glad that the ACA is engaged and being proactive. Sitting back and reacting to whatever happens would most certainly be worse!

Comment from J Horner on August 7, 2009 at 10:24AM EST

Debtors will always use ALL MEANS at their disposal to protest the conduct of collection activity, thanks to plantiffs' attorneys. I do not think it is realistic to LIMIT the debtors right to file a complaint for violations of FDCPA or State Laws in the court of proper jurisdiction. Therefore, we will still be battling, defending, and settling these complaints and actions regarless of any ADDITIONAL new self regulatory forum. Additionally, if you are plaintiff's attorney, would you feel that it's in the best interest of your client to take your case to the SRO built by the Collection Agency Association? We in the industry may be able to find a more beneficial solution. I salute the ACA for doing what it can to find a solution help us, but I'm not sure this solution will work in the real world day in and day out.

Comment from sif2pif on August 7, 2009 at 9:13PM EST

There are honest debtors and dishonest debtor as well as honest collectors and dishonest collectors.....why all the fuss about regulation.....lets face it....its all about the money on both sides....lets have the owners of the bad agencies be accountable through a points system set up by the AG office and the FTC...when you have no points the AG or the FTC shuts you down for 3 days....the next time its 4 days and so on....they know who the bad agencies are. If you don't use all your points the FTC or the AG sends out a certificate....you can use these certificates or what have you to present to clients....or what ever....but regulation will not stop the complaints and it definitely will not stop someone from trying to make a quick buck by breaking the law or filing a frivolous law suit. If anything you will find that complaints will go up....

Comment from Mark Neeb on August 8, 2009 at 10:51AM EST

I've read with interest the comments posted here and have spoken with many ACA members who also have differing views on the SRO issue.

As Vice President of ACA's Executive Committee and also as a member of the SRO commitee I've witnessed first-hand the research and debate and can say that the people involved have the best interest of all ACA members and their employees in mind. No one can perfectly predict the future but as a business owner I'd rather be in control of my companies future rather than leave it to the whims of those who need votes to get re-elected. Haven't we all experienced what happens when our elected officials think they know whats best for us and think they understand our business? Moving forward with the Debt Collector Registry and the Dispute Resolution Program are but a beginning to how we can contol our own outcomes and begin to create our future.

This debate is a necessary one and I applaud the passion people are bringing to it. But, at the end of the day I'm betting ACA is moving us all in the right direction and that we should all rally around this opportunity.

Comment from DEE NICK on August 10, 2009 at 11:28AM EST

Thank you Mark Neeb for your comments and the clarity you bring to the membership. ACA's track record as the voice of our industry has proven itself. ACA has stepped up and defended us to our benefit. What would our current day look like had ACA not stepped in and stayed on the cutting edge of issues coming down the pike? I can tell you had it not been for ACA, our industry would have remained part of the 'do not call list'. That alone would have been devastating..... and lets not forget the rouge judge would not have had her own verdict over turned regarding cell phones.... etc etc. You get my point- ACA is looking out for our best interest. I'm confident of this because I see it first hand. We must look at what 'will' happen should we decide to be reactive rather than proactive. Our times have changed. What we used to know as 'normal' will never be the same (after this recession) and we have to be open minded to gather all of the facts and sort them out. I encourage everyone to put the gloves down, and lets rally together to discuss, debate and deal with issues that we are facing with this new administration and new financial era. We have to look at not only what it will look like if we DO continue with an SRO, registry and DRP BUT what it will look like if we don't! Thank you for your time. Donna Nicholson Stief- MACA Unit

Comment from martin sher on August 12, 2009 at 8:06AM EST

These are very challenging times for all of us in the collection industry. We are having to make tough decisions in our businesses, and are faced with making tough decisions in picking a direction for our industry. This is not the time to sit back and watch. It is the time to get involved and make yourself heard. It is equally as important, though, that we speak as an industry with one clear, strong, voice.

Comment from Anonymous on August 12, 2009 at 1:54PM EST

ACA HAS LOST IT'S FOCUS. "COLLECTORS" ARE NO LONGER THE MAJORITY OF MEMBERS. THE "FOR PROFIT" PART OF ACA IS OUT OF CONTROL. BRING JOHN JOHNSON BACK!

Comment from Rodney Meeks on August 12, 2009 at 8:00PM EST

If anyone has been following the articles regarding the class action suits against the NAF then they should be concerned with any type of SRO. Just like NAF 90 percent of any SRO arbitration cases will be awarded in favor of the agency. And even though it is a fair process the consumer groups will claim it is a system that favors the debt collectors. Never mind the arbitrators are retired judges with outstanding credentials. I agree with the comments above dated 8/6/09 by anonymiss. The SRO program could end up defending a huge class action lawsuit. Who's going to pay for that? Our default judgments are under the same attack. In the eyes of the government and consumer groups if the agency is victorious the majority of the time it must be unfair. Never mind the IRS or any debt owed to the government. Private industry and the very fabric of America is under attack. We need to spend all our money educating our legislators. The CAC has done just that with their California legislators in one of the most challenging political states.

Comment from Anonymous on August 14, 2009 at 1:40PM EST

NO - THIS IS SO WRONG

ACA IS NOT DOING ANYTHING ABOUT FDCPA VIOLATORS AND SHUTTING THEM DOWN!

You cannot be use mediation and arbitration! its already been proven that mediation and arbitration is stacked against the consumer.

Taking over the resolution of FDCPA violations is the FOX GUARDING THE HEN HOUSE. At this time you are doing NOTHING to stop those CA/JDB's that ARE VIOLATING FDCPA as a matter of POLICY!

I will be contacting my government officials and demanding they NOT ALLOW THIS TO HAPPEN!