Top Reasons Some ARM Companies Don’t Work with Debt Settlement Providers

Jeff Dickey,
Persolvo Data Systems

Concerns about security, compliance and third-party communications still chief objections to utilizing debt settlement companies.

In each of the past two years, insideARM.com has conducted a survey of the ARM industry to better understand how these companies are utilizing debt settlement providers to increase collections [October 2011: Debt Settlement Survey: How Creditors and Collectors Increase Collections; January 2013: Debt Settlement Survey Round II: How Creditors and Collectors Increase Collections].  In each of these surveys, roughly 50% of survey respondents indicated that they now engage debt settlement providers as part of a strategy to locate collection accounts and increase collections through the use of these third party service providers.  While this adoption is significant, still, roughly half of the firms responding to the surveys each of the past two years indicated that they still did not work with debt settlement companies as part of their collection strategy.