Collector's Challenge Month in Full Swing at Many ARM Firms

ACA International is encouraging its members to participate in the organization’s “Collector’s Challenge” this month in a push to improve consumer financial literacy. Facilitated through the ACA International Education Foundation, the group’s philanthropic arm, the effort is aimed at improving the image of the debt collection industry.

According to the Foundation, many ACA members will hold fundraisers and collect small, personal donations for the right to enjoy casual dress, with others planning special company outings open to those making a donation. Creativity is encouraged and the campaign is intended as a fun, engaging activity that also generates awareness of the Foundation's programs.

Money raised will be used to help the Foundation expand its work in financial education, such as providing free electronic Community Education Kits regarding consumer rights and money management basics and a free personal financial management Web course, which is offered free of charge. Other uses for the funds include the Foundation’s scholarship program for people in the collection industry and a training program for the disabled.

According to Jean Cottington, executive director of the Foundation, the collector’s challenge initiative started a couple of years ago as a result of a strategy laid out by ACA chairman Bill Wilcox.

“We wanted a way to educate consumers and help improve financial literacy,” Cottington said. “A lot of us can also brush up on [financial and customer service] tools during this difficult time.”

Rion Needs, president and CEO of debt purchaser Asset Acceptance Capital Corp., said that the economy gives the ARM industry an opportunity to help consumers. “During the current difficult financial environment it’s more important than ever that collectors see themselves providing solutions for debtors,” he said.

The lynchpin of this effort is providing better customer service, meaning “helping debtors find solutions, not haranguing them or beating them up,” Needs said.

With better financial education, one of the goals of the Collector’s Challenge, consumers can better handle their debt obligations, Needs added. So he sees it as an important effort for his company.

As part of its collector’s challenge, Asset Acceptance is holding its third annual Baseball Dress Down for Financial Literacy fundraiser. Associates donate a dollar or more to financial literacy for the opportunity to wear their favorite baseball gear to work during a designated week.  Associates often donate more than one dollar.  They enjoy the tie-in to opening week of major league baseball and the fun atmosphere, including serving baseball snacks like popcorn, raffle prizes and the right to broadcast the opening day baseball game over the company’s public address system and on lunchroom TV.

Additionally, company chairman Brad Bradley and his wife are matching the associate contributions to financial literacy dollar-for-dollar.

Needs noted that Asset Acceptance carefully follows the ACA’s lead on collector behavior and outreach. The interactions collectors have with consumers on the front lines are what colors America’s perceptions of the ARM industry. The ACA, along with leaders like Asset Acceptance, are making a concerted effort to change the negative perception many have about collectors.

When ACA unveiled their Collector’s Pledge in 2008, Asset Acceptance had its workers adopt it:

• I believe every person has worth as an individual.
• I believe every person should be treated with dignity and respect.
• I will make it my responsibility to help consumers find ways to pay their debts.
• I will be professional and ethical.
• I will commit to honoring this pledge.
  

The company takes several steps to ensure that collector’s adhere to the pledge. In the initial interview process, the company looks for attitudes, behavior and skills that lend themselves to the collection environment. People who are naturally combative or overbearing tend to get weeded out at this stage. The company also has potential employees listen to collection calls so they’ll have a taste of what they will be doing.

The company has each of its collectors sign the pledge, and has several copies of it on display in the office to keep it top of mind, Needs said.

To help ensure that collectors, once hired, continue to adhere to the pledge -- in practice as well as in theory -- the company has a ratio of about 12 collectors to every supervisor, enabling managers to pay close attention to calls, helping to ensure that proper demeanor is maintained.

The company also makes itself available to the press to help provide insight on how business should be conducted, said Needs, adding that the aggressive collection tactics highlighted by some news reports, like the recent Dateline special, are “reprehensible” and not indicative of typical collection behavior.

<<< Return to Newsletter