Sep 18, 2013 Phil Burgess
Being contacted by a debt collection agency is hardly a welcome development for most consumers. However, debtors that are called by representatives from Consumer Financial Support (CFS2) may be more likely to smile than frown.
According to Epoch Times, the company takes a novel approach to debt collection by providing impeccable service to borrowers. In fact, the source reported that Bill Bartmann, the firm's innovative CEO, refers to debtors as "customers," an indication of the value he places on having positive, constructive interactions with debt owners.
The main focus of CFS2 and Bartmann is to first improve the lives of borrowers in trouble and then address debt recovery. For example, the company has been known to help unemployed individuals find jobs, fill out applications and train them on best interview practices. Also, Bartmann's staff is encouraged to ask consumers about major needs they might have.
By establishing a close-working friendship with debtors and consulting with creditors to reduce settlements, the company has certainly increased its workload when compared to other debt collectors. However, CFS2 has seen a significant return on investment.
"Our collection results are in excess of 200 percent of our industry peers," Bartmann told the source. "Yes, there is a bit of additional cost to provide these services, but that cost is minimal in relation to the excess collections they produce."
Lessons learned and applied
Part of the reason Bartmann as adopted the collection model he employs is because he knows what it's like to be in debt. According to The Harvard Business Review, Bartmann was once $1 million in debt after his first business failed. As a result, he came to understand how detrimental improper and harassing collection practices can be to both consumers and businesses.
Debt collectors who use aggressive tactics are more likely to upset consumers, which may increase the chances of a complaint being filed with the Federal Trade Commission or other government group. Potentially, such actions can result in legal action that can harm a collectors reputation.
As Epoch Time noted, banks, corporate enterprises and other financial institutions that use collection services are starting to pay more attention to the actions of account agencies when choosing a service to assist them. Chances are, excessive consumer complaints and legal cases will turn off a potential client. For this reason, the model championed by Bartmann and CFS2 may provide the outline for the industry's future.