Collection Industry has Duty to Treat Consumers Equitably
Guest Blog: USA Today yesterday ran the following Letter to the Editor from Robert Markoff, president, National Association of Retail Collection Attorneys (NARCA), and a partner with Baker, Milller, Markoff & Krasny in Chicago.
As a young man, the future President Abraham Lincoln suffered financial hardship. At least three judgments were entered against him for non-payment of debts. Lincoln paid the first judgment in installments. For the other debts, the sheriff sold a few of Lincoln's possessions, including his horse and saddle.
Today's turbulent economy is leaving many people unable to pay their debts. Consumers are disturbed when they, like Honest Abe, fall behind. Knowing that one of this country's most highly regarded citizens faced and overcame serious financial problems can provide some perspective in hard times.
If there were no consequences for non-payment of one's obligations, the temptation would be for no one to pay his bills. Debt collection is an important part of our economy. All consumers would be penalized if businesses were unable to recoup losses resulting from bad debt. In 2005, $39.3 billion was repaid, saving the average American household $351 in reduced prices and greater purchasing power.
Nonetheless, just as consumers must act responsibly, so too must collection professionals. Members of the collection industry should never miss the opportunity to do the right thing in helping consumers meet their responsibilities.
The industry need only look back at one of its predecessors when considering its professional conduct. Within a year of the sheriff's sale of Lincoln's possessions, Lincoln became a lawyer whose main court practice involved debts. Honest Abe was a collection attorney.
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Comments
Comment from Anonymous on April 2, 2008 at 1:21PM EST
This is part of the problem.
With the 200th anniversary of Lincoln's birth, there is, and will be, a lot of disinformation about Lincoln. The referenced "judgment" theory presented in this article falls into that category. Lincoln had financial problems, but judgments when living in New Salem? Let's see a reference to the source documents.
That is a real challenge in the debt buyers industry. They buy lists, do not prepare their cases with references to "source documents", and hope that they are not challenged to provide "source documents" to validate that the alledged debt is real and is not out of statute. Rather, that consumer will think that if they get a letter from an attorney, it must be legit.
Lincoln a collection lawyer? Please...Lincoln was involved in litigation to retrieve fees as a result of contractual disputes, primary as a part of corporate law.
Still, nearly 200 years after his birth, everybody wants a part of Abraham. He most certainly would was not a collections attorney, and would most certainly not be involved as a legal representative of debt buyers.
I would find it hard to believe that anyone familiar with the principals he lived by and practiced would think so.
Be loose and fast with the facts in Credigy type cases if you must; please don't impugn Lincoln.
Interesting reading: Google Mr. Markoff's firm and Credigy. Just because it's on the internet doesn't mean it's real, but where there's smoke.......... .
Comment from datamanager on April 3, 2008 at 2:28PM EST
my comment is for the anonymous commenter...the fact that you found it necessary to be anonymous in your comments makes them less believable. You expect the average reader to take your statements as fact, yet you offer no supporting documents or references either. At least Mr. Markoff doesn't hide behind "anonymous" as he states his interpretation of events. I think most people are more likely to believe someone who uses their identity when imparting "facts".
Comment from Robert Markoff on April 10, 2008 at 4:32PM EST
Lincoln, as a young man, had at least three judgments entered against him. The first was paid in 6 installments, the second two resulted in sheriff sales of his property. The information is readily available in numerous histories of Lincoln. I suggest that anonymous visit www.thepapersofabrahamlincoln.org and visit the Lincoln Log for the years 1830 to 1833.
Under the FDCPA, an attorney who spends more than a nominal amout of time collecting debts is considered a collection attorney. The statement that Lincoln was a collection attorney is based on a Lincoln Scholar's lecture at the Abraham Lincoln Library in Springfield, IL. The scholar stated that 60% of Lincoln's known court cases involved debt collection. This makes perfect sense when you realize that there was not enough cash in Illinois in the 1830's to support the growing economy. Therefore, notes were given and then assigned for value in place of cash or bank loans.
The notes that Lincoln could not pay were related to his purchase of his failed business.
As a final note, later in his life, Lincoln wrote a letter which stated in part that he did not mind the collection business but that he was tired of following the sheriff sales which were necessary to enforce the judgments.
As I am a collection attorney from the Land of Lincoln, I am proud to follow in his legal footsteps. Unlike Lincoln, serving as President of the National Association of Retail Collection Attorneys in Washington, DC is the highest office to which I ever aspired.
The point of my letter was to encourage collection professionals to collect debt ethically. We should never miss an opportunity to do the right thing.
Comment from Murcath on April 10, 2008 at 10:31PM EST
I am waiting patiently for the revolution to come. When the ethical and professional debt collectors rise up and stop taking the heat for the few unethical,deceptive and grossly over publicized debt collection agencies and bill collectors. I see a union coming.