THE LESSON

This week’s collector mentor Challenge is inspired by a recent piece published on insideARM.com titled, “A Walk Down Memory Lane: A Fascinating Look at the Collection Industry as in was in 1995.”

In the article, Kaulkin Media president and insideARM.com publisher Stephanie Eidelman, encourages readers to download the 1995 Kaulkin Report to see the debt collection industry as it was back then.

This past weekend, I had an opportunity to travel back in time to1974 and read the legendary Chicago Tribune articles on debt collectors. If you are not familiar with the history of the FDCPA, the articles that I am referring to were part of a weeklong series covering the abusive collection practices of Chicago-area collection agencies. Although I have been in the industry for more than a decade, and was familiar with the story of how the FDCPA came about, I never had the opportunity to read the actual articles until I spent a couple of hours searching the online archives. Now, the articles are a prized possession (Hey, what can I say, I am a collections nerd.).

THE CHALLENGE

This week’s challenge is to fire up the DeLorean and travel back in time in order to see the debt collection industry from a different point of view.

You can:

1. Download and review the 1995 Kaulkin Report (it’s totally free).
2. Access the historical “gems” that Eidelman mentions in her article.
3. Talk with seasoned veterans and ask them how things have changed since they first came to the industry. (I personally enjoy talking with people who have worked in the industry pre-FDCPA and pre-computer. The stories are awesome.)
4. Access the Chicago Tribune’s online archive and review the articles that were instrumental in the development of the FDCPA.

THE REFLECTION

In her article, Eidelman encourages her audience to reflect on how the changes of the past 15 years have influenced business, and asks, “What do you think will characterize the next fifteen?”

Question: What do you think the future holds for the collections industry?

Please share your thoughts in the comment section below.

Gary Jensen
Editor | collector mentor

To download companion worksheets to use with The collector mentor Challenge, please visit www.collectormentor.com/thechallenge.

© 2011 collector mentor  All rights reserved.

By Stephanie Eidelman | President, Kaulkin Media

This week we officially opened our annual Best Places to Work in Collections program for registration!

Now in its fourth year, insideARM.com’s Best Places to Work program recognizes the most positive workplace environments in our industry.  Winners have enjoyed great benefits including enhanced reputation with creditors, morale boost, and recruiting support.

Compete against companies of your own size.  No need to feel that you can’t measure up against the benefits and resources of a large company, or the family feeling of a small company.  Rankings are determined within three size categories: small (15-74 employees), medium (75-249 employees) and large (250+ employees).

It works like this:

1. Employers complete a questionnaire on workplace policies, practices, philosophy, systems, benefits, and demographics. It can take about 8 hours to gather all of the info for this questionnaire – but hey, if it was totally simple, it wouldn’t produce meaningful results – and if you register now, you’ll have months to pull it together.

2. Employees are asked an in-depth set of questions — you choose online or via paper format; either way it takes about 10-15 minutes to complete.

That’s it. Within about 6-8 weeks of completion, our partner, Best Companies Group, will produce a list of winners and we start to make announcements.

Rest assured insideARM staff does not have access to employee responses; Best Companies Group has no connection to the debt collection industry (with the exception of their role in this program).  If your staff is — ahem — less than kind, nobody will know but you.  But YOU should know!

Participating companies will receive a free one-page “Employer Benchmark Summary”, and will have the opportunity to purchase the full “Employee Feedback Report” that provides valuable data including a spreadsheet summarizing employee feedback, written employee comments, and industry benchmark information.

These reports offer incredibly valuable information at an unbelievably fair price, regardless of whether you are selected as a winner.  The value in having a 3rd party conduct this survey is that you get candid information from your employees; your HR department could never gather this type of information.  And if you chose to do it independently, you’d pay thousands of dollars.

Please, take advantage of this great opportunity to learn what your employees really think.  After all, aren’t they the ones driving your revenue?  If your staff is unhappy, do you think they are as productive as they could be, or that they are representing you and your clients as they should be?

Yes, it will require some time to complete the company portion of the survey, but it’s not due until mid- summer, so you’ve got plenty of time to deal with it if you get started now.

Simply participating will show your employees that you care.  And just read what your peers have to say about the benefits you’ll enjoy if selected as a winner!

ABOUT THE AUTHOR

I’m the president of Kaulkin Media and publisher of insideARM.com. Our mission is to “shift the public conversation about the ARM industry.” When we started in 1999 this was a really niche topic. Today, our arena truly is the news of the economy and touches nearly every consumer. After a brief “first-job” stint with a regional accounting firm, I worked for Disney as a stage manager for a few years, then went to UCLA to get an MBA. From there I went to AlliedSignal Aerospace and had probably my most challenging and rewarding professional experience, as a materials manager for a manufacturing line. In the mid-90’s I joined Citysearch.com, one of the original Internet startups. After several years of opening new markets and working with newspaper companies on their local and classifieds strategies, I joined the family firm, Kaulkin Ginsberg.

Each week we bring you 10 of our most favorite stories from around the industry.

Week of August 22, 2010

1. BBB Warns About Bogus Debt Collectors; Local Woman Targeted

(KWTX.com, 08/27/10)

The Better Business Bureau issued a bulletin Friday warning about phony debt collection callers who claim to be from the Kentucky-based payday loan company U.S. Cash Advance.”

2. HEPSEN v. J.C. CHRISTENSEN AND ASSOCIATES, INC.

(Leagle.com, 08/25/10)

This appeal concerns an award of attorneys’ fees under the Fair Debt Collection Practices Act (“FDCPA”), 15 U.S.C. § 1692 et seq. After a one-day bench trial before a magistrate judge, Defendant J.C. Christensen and Associates, Inc. (“Christensen”), was found to have committed two violations of the FDCPA. The magistrate judge awarded Plaintiff Ahmet Hepsen (“Hepsen”) $500 in statutory damages. Having prevailed in his FDCPA action, Hepsen filed a motion for an award of attorneys’ fees under the FDCPA. At the time the magistrate judge ruled on the motion, Hepsen sought $54,273.50 in attorneys’ fees. Hepsen did not receive the requested $54,273.50..”

3. Debt collector accused of continuing to run an agency from prison

(Buffalo News, 08/25/10)

A Lancaster man imprisoned on a parole violation has been accused by Attorney General Andrew M. Cuomo of illegally operating his Buffalo debt collection agency from federal prison.

4. Ramos bill would set criteria for reporting outstanding health care debt

(NJ.com, 08/24/10)

Hoboken Assemblyman Ruben Ramos Jr. will introduce legislation that would require health care providers to notify patients with outstanding debt before reporting them to a private collection agency or consumer reporting agency.”

5. City approves new system to collect unpaid taxes

(Lancaster Eagle Gazette, 08/24/10)

Lancaster will enter into a new agreement with a tax collection agency in an effort to acquire money owed to the city, but not paid.”

6. Lawsuits Filed Against Agencies, Creditors Decline

(Credit & Collections Risk, 08/24/10)

The number of collection agencies and creditors sued between August 1-15 totaled 426, down from 488 sued in the July 16-31 period, but up from 389 in the first half of July, according to data from U.S. District Courts.”

7. Collection Agencies Maintain Growth Posture in Tough Economy

(insideARM.com, 08/18/10)

An increase in placements and portfolio supply has prompted collection agencies and debt buyers to hire people recently. Meanwhile, the performance outlook for the ARM industry remains strained.”

8. Kaulkin Gingsberg’s Michael Lamm asks, “What is Your “Plan of Attack”?

(insideARM.com, 08/24/10)

I love the summer. Who doesn’t?  It is a great time to be with your family and friends and to be outside if it is not 100 degrees and humid, like it has been in the Philadelphia area recently!  It is also a good time to reflect on how the year has been going with your debt collection agency, and to figure out your “plan of attack” for the remainder of the year and 2011.”

9. Final Changes Restricting Credit Cards will have Lingering Impact on ARM

(insideARM.com, 08/23/10)

The rules of the game governing credit cards are changing yet again, as the final provisions of federal legislation involving credit card interest rates and fees went into effect yesterday. The big buzz this is creating is centered on credit card interest rates reaching a nine-year high, expected to go up even further in light of these new restrictions.”

10. TOTAL U.S. BANKRUPTCIES IN FIRST HALF OF 2010 UP 14 PERCENT OVER FIRST HALF OF 2009

(American Bankruptcy Institute press release, 08/17/10)

The total number of U.S. bankruptcies filed during the first six months of 2010 increased 14 percent over the same six-month period in 2009, according to data released today by the Administrative Office of the U.S. Courts. Total filings reached 810,209 during the first half of the calendar year of 2010 (January 1-June 30), compared to 711,550 cases filed over the same period in 2009. The totals represent the highest number of filings for the first six months of a calendar year since 2005, when the Bankruptcy Code was amended.”

Each week we bring you 10 of our most favorite stories from around the industry.

Week of July 25, 2010

1. Facebook makes debt collection sweet for creditors

(Business Daily Africa, 08/02/10)

Collectors overseas harness the power of Facebook.

2. Lawsuits Against Agencies, Creditors Down In Early July

(Credit & Collections Risk, 07/30/10)

Is the decline in lawsuits only temporary?

3. CSA Diploma winners celebrate at awards day

(Business Credit Management UK, 07/29/10)

Seventy-two industry professionals successfully passed the UK’s leading accredited credit and collection training program.

4. Portfolio Recovery, Asset Acceptance Q2 Profits Beat

(Rueters.com, 07/29/10)

Two collection agencies beat expectations for second quarter earnings.

5. Laguna Beach hospital chief was also its debt collector

(California Watch, 07/29/10)

Conflict of interest, yes or no? You be the judge. Share your thoughts in the comments section.

6. Could the Bureau of Consumer Financial Protection be Positive for Collectors?

(insideARM.com, 07/29/10)

Kaulkin Media president Stephanie Eidelman shares her opinion on the highly anticipated BCFP.

7. Debt collection firm Affiliated Group to add up to 60 employees

(Post-Bulletin, 07/28/10)

A Rochester, Minnesota collection agency lands large municipal government contract; has plans to hire 30 new employees by the end of September.

8. New York Debt Collector Settles Wrongful Collection Charges

(Credit & Collections Risk, 07/27/10)

New York Attorney General Andrew Cuomo settles with yet another collection agency. This time: $125,000.

9. Terminally ill Jupiter Farms woman behind on home loan alleges collector taunted, harassed her

(The Palm Beach Post, 07/25/10)

Collection calls regarding a past due mortgage cause woman terminally ill with brain cancer to collapse in front yard.

10. insideARM.com Appoints Forward Thinking Editorial Board

(insideARM.com, 07/28/10)

With its eyes set on shifting the public conversation about the ARM industry, insideARM.comrecently unveiled a 16 member editorial board to help ensure a balanced perspective.

Each week we bring you 10 of our most favorite stories from around the industry.

Week of July 4, 2010

1. State yanks license of collection agency

(SJ-R.com 07/09/10)

A Springfield, Illinois collection agency has been fined $55,000 in addition to having its license revoked.

2. Debt collectors get nasty

(CNNMoney.com 07/10/10)

CNN staff reporter Blake Ellis uses statistics from the FTCs 2009 annual report on the FDCPA to make the claim that debt collectors are “getting desperate and dirty.”

3. Debt Collector Shot Dead While Riding Scooter in Front of School

(GetOutofDebt.org 07/08/10)

A Malaysian debt collector was shot twice from behind in what appears to be an act of revenge.

4. Lawsuits Filed Against 471 Agencies, Creditors

(Collections & Credit Risk, 07/09/10)

In the second half of June it is estimated that 471 collection agencies and creditors were sued. Hopefully your’s wasn’t one of them.

5. New Colorado Collection Agency Requirements Misguided, Say ARM Leaders

(insideARM.com, 07/09/10)

Is it possible that Colorado is enacting legislation to deal with a problem that doesn’t even exist? Some think so. Do you agree?

6. Kaulkin Media Appoints Stephanie Eidelman President to Drive Change

(insideARM.com, 07/08/10)

Kaulkin Media has appointed a new president who is ready to shift the public conversation about the industry.

7. Collection Agency Runs Free Baseball Camp for 50 Kids

(insideARM.com, 07/08/10)

Former Brewers baseball player and current owner of National Recovery Service, Brad DeKraai, recently hosted a free baseball camp for Kansas children.

8. Susan Smith Recognized as “Woman of the Year” by the National Association of Professional Women

(MKS Financial Services press release, 07/08/10)

MKS Financial Services’ executive vice president Susan Smith receives honor of as The National Association of Professional Women’s “Woman of the Year.”

9. MicroBilt Corporation Launches New Blog, Newsletter and Forum Resources

(MicroBilt Corporation press release, accessed 07/05/10)

MicroBilt recently unveiled a new blog, newsletter, and forum which will provide useful information to members of the credit and collection industry.

10. FDCPA Plaintiff Attorney Suspended from Practicing Law by State

(insideARM.com, 07/02/10)

The Minnesota Supreme Court has suspended Thomas Lyons from practicing law in the state.

 InsideARM.com is currently running a contest for the Best Collection Story! And, get this…the winner will get their hands on a crisp $50 bill! Cha-ching!But, you gotta hurry. The contest closes on April 30th! Here are the details c/o of InsideARM.com: 

 Debt collectors: We’re looking for the best collection stories in the industry. They can be inspiring, funny, poignant…whatever you’ve got. 

 We’ll pick the top submissions and then showcase the finalists on insideARM for a reader vote to determine a winner.. The story with the most votes wins a $50 gift certificate to Amazon.com. 

 This is the first contest in a series we will be running for ARM professionals. We want to show the world that collectors approach their work basically the same way as everyone else, even if our stories are unique to the collection industry. Be on the lookout for more contests, complete with prizes, very soon. 

 So send in those stories where you helped someone with a long-running debt, or received payment in full in nickels, or had a consumer speak to you in Scooby Doo’s voice. There are no guidelines, just please keep the stories clean and respectful. 

 Submissions will be accepted until April 30, with voting beginning the following week on this page. 

 Email editor@insidearm.com or use the form here http://www.insidearm.com/go/story-contest to submit your story. Remember: you only have until April 30.

The folks at Kaulkin Ginsberg have put together an excellent search engine specifically designed for the ARM industry.

According to the site:

“Searchreceivables.com is a “vertical”, or domain-specific, search engine. This is a relatively new tier in the Internet search industry, consisting of search engines that focus on specific slices of content in order to deliver the most relevant results in the most efficient manner.

For instance, a Google search on “collections” yields more than 316,000,000 results, many of which cover things like museum or baseball card collections.

An ARM Sites search yields just about 35,000 results that are far more targeted to what a Searchreceivables.com user is likely to be looking for”

Be sure to stop by and add this to your “favorites.”

Gary Jensen
Editor collector mentor