Aug 10, 2013 Phil Burgess
Debt collection agencies play a vital role in the national economy. They are responsible for bringing in billions of dollar and employing thousands of professionals across the country, significantly contributing the economic growth. Additionally, they can help individuals close debt accounts that can have negative effects on their consumer credit reports.
Despite the benefits that many of these enterprises offer, Entrepreneur Magazine reported that debt complaints were the second most filed grievance in 2012, according to Consumer Federation of America (CFA) data. The source noted that harassing phone calls and attempting to collect a payment from an individual that did not own a debt were the top complaints levied against debt collectors.
Although many consumers hold a negative view of the industry, WWBT-TV reported that it is a misguided assessment of the sector. One of the common myths the source noted that many people hold regarding to industry is that all debt collectors are bad. However, Entrepreneur Magazine indicated that many debt services enterprises are extremely professional and work with consumers to address their debt accounts in a manageable way.
According to the source, industry organizations such as the Association of Credit and Collection Professionals and the Virginia Collectors Association spearhead advocacy programs that are designed to educate citizens and collectors about the sector. In particular, these groups help agents become knowledgeable of the various laws that regulate the practice such as the Fair Debt Collection Practices Act.
By working with such organizations, debt collection agencies can consult with other industry professionals to establish company guidelines that outline best collection practices. Doing so will go a long way in enhancing a company's reputation with consumers as well as perspective clients. It could result in a spike in business and may reduce the potential for litigation that can arise from illegal practices.