Kinder Collections at a Florida Agency

The collections business has changed so much that Cheryl Jaye Valentine doesn't even consider it collections any more.

"It's really financial management," said Valentine, who co-owns Valentine & Kerbartas, a growing Bradenton, FL collection agency.

After working seven years at Financial Collection Agency, Valentine had her fill of working for someone else.

"I got tired of never breaking through the glass ceiling," she said.

In 1994, she cashed in her son's $50,000 college education fund and invested in a business along with partner Bob Kerbartas.

Account placements for consumer and commercial collections represent a $275 billion market, said Emil Hartleb, executive director of the Commercial Collection Agency Association in New Jersey. Collections on outstanding debt run 20 to 22 percent. Collection agencies only see about 6.3 percent of the total.

Headquartered in Lawrence, Mass., Valentine & Kerbartas recently celebrated its 10-year anniversary. A third location in Colwell, Idaho, allows for a coast-to-coast presence, and lengthens the calling day, said John Stock, the company's director of operations.

Collection agencies today are run far differently from the strong-arm tactics of the past. Today they are governed by strict regulations following the Fair Debt Collections Practices Act, or FDCPA, established by Congress in 1978.

"Back before the FDCPA, you could basically do whatever you wanted," said Ken Barr, senior vice president of new business development for the company. "People, when they think of collection agencies, think more of an aggressive stance. That was the old way of thinking."

Collection agencies now have to adhere to strict guidelines, which include restricted calling hours. For example, they cannot call debtors after 9 p.m. or before 8 a.m.

For this complete story, please visit Kinder Collections at a Florida Agency.