MINNEAPOLIS, MN – With the current U.S. economy continuing to look somewhat bleak and unstable, one industry is working diligently to improve these conditions. By recovering money for businesses and encouraging consumers to make wise financial decisions, the debt collection industry plays a vital role in building a healthy economy.
?Ours is a commonly misunderstood industry. In times of economic hardship and uncertainty, collecting late and delinquent receivables is critically important to all businesses and institutions,? said Mark Davitt, treasurer for ACA International (ACA), the Association of Credit and Collection Professionals. ?On the human side, our industry works with people on a case by case basis and negotiates payment plans that help individuals and companies out of difficult situations and, in turn, helps lay the foundation for a better future.?
Unpaid debt is often the cause of increased prices on goods and services. Since there is a limit on how high prices can be raised before businesses begin losing customers, bad debt also results in business failure and job loss, especially for smaller, family-owned businesses.
Cycling money back into the economy through payments and collections is the very backbone of our nation?s financial system. Recent statistics show that, thanks to quick work by private collection agencies, the debt collection industry generated nearly $13 billion in revenue for U.S. companies in 2001.
?We are now presented with more opportunities than ever before to help businesses of all sizes recover past-due accounts in a professional, ethical manner – allowing them to stay competitive within their market by providing reasonably priced goods and services,? said Harry Strausser III, ACA vice president.
On the other hand, when collecting on past-due accounts, collection professionals realize that people from all walks of life face financial problems for a variety of reasons. The first thing a collector learns is that harassment of a consumer is ineffective and unethical, as well as illegal under the Fair Debt Collection Practices Act (FDCPA). Instead, collectors are trained to listen to what consumers say and to provide guidance in settling their accounts, usually by offering alternative payment arrangements to work out their current financial troubles.
Davitt noted, ?In difficult times, some people need assistance formulating a plan that will help them address their current needs and establish a framework for positioning themselves to be better off when our economic environment improves.?
ACA International, formerly known as the American Collectors Association Inc., is the association of credit and collection professionals. Founded in 1939, ACA International has approximately 5,300 members, including third-party collection agencies, attorneys, credit grantors and vendor affiliates. Headquartered in Minneapolis, ACA International serves members in the United States, Canada and 58 other countries worldwide. For more information, visit our new Web site at www.acainternational.org.
