The ACA Makes a Key Decision for the Future of the Debt Collection Industry.

On 11-4-09, the ACA (Association of Credit and Collection Professionals) decided to reverse it’s decision on wanting legislation to create a self-regulation structure for the debt collection field. Many members did not see this self regulation idea as a good thing. This meant more government involved meant, more fee’s and registration costs to what the ACA was originally planning. The CAC (California Association of Collectors) have been close to voting that members do not need to be a member of the ACA. For many years now the CAC always required it’s members to be apart of the ACA, however, due to decisions the ACA has been making in the past few years. Many of their policy changes, and the decisions they have been making have been counterintuitive to what the CAC feels is in their best interest. The CAC however, were not the only ones that were outraged by the ACA’s decision, many of its members were furious that the ACA would want to take this turn. John Nemo an ACA spokesperson told InsideARM,

“We are a member driven organization. We listen to our membership,” Nemo said. “There was no intent to try to deceive anyone or do anything behind the scenes. We understand that this is an incredibly sensitive and important issue, perhaps the biggest one since the Fair Debt Collection Practices Act passed, and we want to make sure we do as good a job as possible of being transparent about the process and making sure our board of directors and our membership at large are informed and able to give their input.”

It seems most of the ACA’s members are extremely happy with their current decision to not want added registration costs and fees. This decision still leaves questions to what the FTC, the ACA and other involved parties are going to do. With this year being the year with the greatest amount of Fair Debt Collection Practices Act law suits yet, there will be some kind of change in the future. Rumson, Bolling & Associates will do our best to keep our clients, readers and consumers on the forefront of news in the debt collection industry.

Credit Card Rates Increasing at an Alarming Rate

Rumson, Bolling & Associates wants to shed some light on credit card news that may not be common knowledge. Credit card rates have increased for a two year high. the average interest rate on consumer credit cards soared to over 15 percent in September in the past two years.

Many believe this sharp hike has been because Congrass has passed the Credit Card Accountability, Responsibility and Disclosure Act of 2009 (Credit CARD Act). Companies are raising their rates now because it will be much more difficult to raise rates after this Act goes into effect in early 2010. However, it is still likely with the current economical situation of the United States interest rates will continue to go up after the Act is in effect due to federal rates are predicted to go up. Currently individual companies are raising their rates, while in the future it would be an industry wide increase. An industry wide increase would mean not as big of an increase and a more regulated increase with the Act in effect. Current companies have much more free will to do as they please.

As the holiday season is approaching and everyone will be spending, Rumson, Bolling & Associates urges consumers to pay attention to interest rates, and your credit cards. For more information please read this article from ACA International.

http://www.acainternational.org/Credit-Card-Interest-Rates-Soar-15179.aspx

Thank You InsideARM

Rumson, Bolling & Associates would like to show gratitude for InsideARM.com. Inside ARM releases articles, press releases and reports for the public and those in the Accounts Receivable field. Many of the services InsideARM.com offers are free. One useful tool for those in the industry and those who are not alike are the InsideARM.com message boards. Industry members can network amongst each other and consumers can get industry leaders opinions and thoughts on various subjects, evenly sharing and spreading knowledge to better inform consumers and debtors. InsideARM.com has professionals and industry leaders creating new hard quarterly and yearly predictions on industry progress, growth and change. InsideARM.com is one of the first sites to create an online expo. Not only can one connect with companies, individuals and vendors like a normal expo but this expo can be done in the convenience of work or at home and InsideARM.com is offering all this for free as well. Rumson, Bolling & Associates would once again like to take this time to thank InsideARM.com for their efforts in helping, aiding, and progressing the accounts receivables industry.

www.insidearm.com

Major Players in the Debt Collection Field

Many people have no idea who regulates the debt collection industry. Many people have no idea where to go to if they need to dispute a claim, or have an issue with a collection company. With more people going default on their payments and people dealing with collectors that they never thought they would, this article can make you more knowledgeable and can help lead you to be debt free.

The debt collection field is regulated by the Federal Trade Commission, in fact all of the accounts receivable industry is regulated by the FTC. The FTC’s website is a valuable tool for everyone. The FTC has information and help if one has been scammed, or knows of a company that is fraudulent. They have a complaint form, and they can help consumers who are dealing with specific industries such as credit loans or computers & internet. In particular though for debt collection the FTC has released a piece of literature called the Fair Debt Collection Practices Act. The FDCPA has everything listed that a debt collector can or cannot do. On their website they have list how to properly dispute a debt. When the economy is slower, more people go into default, with more people owing money, skip-tracers are not 100% accurate so for some “debtors” they may have a very common name maybe the last name of Smith, so a collection agency may in fact make a mistake every now and then. Using the FTC’s website one can effectively dispute a debt; making phone calls, letters go away, as well as not having one’s credit score be affected. Any consumer (which is all of us) should go to the FTC’s website at one point or another just to see what the FTC can do for you.

Another major player in the debt collection field is the ACA – Association of Credit and Debt Collection Professionals. The ACA is an association of professionals in the credit and collection industry. They have an established set of standards, which they make their collectors adhere by. Probably the most crucial thing the ACA does though is they act as a mediator between debtors/consumers and collectors. On the front page of the ACA’s website there is a complaint form, ACA will help mediate collection problems w/o having to use the FTC, however if it is unable to resolve the issue, the ACA then sends complaints to the FTC. This helps to be as a filter to the FTC, helping everyone save government dollars and limited government resources of the FTC. ACA has been so effective the FTC often asks the ACA for their input and thoughts on debt collection. Recently the FTC is in the process of maybe creating a whole new government agency for credit and debt collection regulation/law making, and the FTC went to the ACA for their input on this. The ACA is a much better mediator than the Better Business Bureau due to the fact the BBB is often biased against certain parties. Also the BBB will not do anything to actually solve a problem, the ACA will send complaints if needed to the FTC. The ACA is much more helpful and unbiased when it comes to credit and debt collection complaints and concerns.

Predictive Dialers Now Illegal, however RBA is unaffected.

Once an undervalued service that Rumson, Bolling & Associates offered, is now making our company ahead of many collection agencies is the fact We do not use auto dialers and all of our phone calls are being made by real people. Starting September 1st 2009, Congress made auto dialers or predictive dialers, illegal to those who do not want phone calls. Many collection agencies have built their business structure around predictive dialers using dialers was once a somewhat efficient way to contact a large number group of people. Studies Congress did show that one predictive dialer could make 1,500 calls a day.

For those in the collections /sales / telemarketing field understand this number is almost unparallel to any human, however Rumson, Bolling & Associates has always felt that this is something very negative as well. Having an automated dialer calling a debtor lacks the care, emotions and helpfulness of having a human being on the other line. In Our own experience debtors respond much better and our efforts are much more successful if Our staff is calling instead of a computer automated phone call. Since Rumson, Bolling & Associates never relied on predictive dialers so this new law from congress has 0 affect on our business and our ability to collect. Many other companies in the industry who use predictive dialers this is hindering their ability to collect, and could cause long term problems should they continue to use it such as getting shut down from the F.T.C.

Another undervalued service that many people do not realize is the fact that all of our collectors and staff are in the United States. Rumson, Bolling & Associates is firmly against outsourcing jobs. Many collection agencies are sending jobs to other countries for cheaper labor. The problem with this is the United States are losing jobs and money that could be used for our economy is going to another countries economy. Another problem this creates is a communication barrier, a foreign call center is not nearly as easy to communicate with as one that is state side. Rumson, Bolling & Associates wants to assure the public that We are doing everything in our part to being the best collection agency possible and doing our best to help with our countries current economic status.

Forwarding Fee Contract Snippet

"BY EXECUTING THIS FORWARDING FEE CONTRACT EXTENSION, I ACKNOWLEDGE THAT NO PROMISES, GUARENTEES, OR WARRANTIES ARE EXPRESSED OR IMPLIED. NO REPRESNATIONS HAVE BEEN MADE TO ME THAT CONFLICT WITH THE DISCLOSURE THAT BAD DEBT CAN UNDER NO CIRCUMSTANCES BE GUARANTEED AND THAT THERE IS ALWAYS A RISK THAT DESPITE THE BEST PRACTICES, A DEBTOR MAY NEVER REPAY HIS OBLIGATION TO YOU"

This is a snippet from the Forwarding Fee Contract. While the Forwarding Fee Contract greatly increases your chances to collect a debt, it does not give a 100% guarantee. There is never a 100% guarantee when it comes to debt collection. Debt collection deals with laws, regulations, and the court systems. Rumson, Bolling & Associates will do our best to get you your money owed however we cannot promise anything.

Intangible Benefits, Undervalued Services and Vicarious Collection Phenomenon

One of the most undervalued services offered by Rumson, Bolling & Associates is the Forwarding Fee Placement Package. For a very low per case cost, multiple qualifying cases can be packaged and sent to collection litigation. Why pay an upfront fee? Packing your bad debts and sending them in bulk into collection litigation will ultimately results in the recovery of upfront costs. Often the forwarding fee is considerably less than even the actual filing fee of one case alone.

Vicarious Collection Phenomenon, when you put your collection cases in a forwarding fee placement package you send this message to the business community: We will not tolerate late, delinquent, short, or non-payment of our accounts. And we will enforce our contracts. This message is conveyed loudly and clearly to all of your potential debtors. Believe us, the vicarious collection phenomenon will cause them to pay you and not pay those they know who won’t use Rumson, Bolling & Associates.