Debt Collection - Improving the Industry

[mtw1980]

Hi All,

 

I'm new to this forum, but already it seems like a hive of knowledge and support for those in debt and how to deal with it.

 

First off, I should add that I do work for one of the larger debt collection agencies (in a management level position).... I may have made myself the most hated man on this site by now. However, I, like most people have debts myself (only small ones now which I'm dealing with), but have also experienced what it's like to experience debts into tens of thousands through one of my immediate family members and am aware of the difficulties it can pose: financial, relationship issues, depression etc. etc.

 

What's prompted me to post on here is that there are a lot of people who have a number of issues with debt collection agencies and the credit industry as a whole. I can understand many peoples frustration.

 

I think that we're all sensible enough to agree that the existence of debt collection agencies is required in order to recoup unpaid debts. Of course, some may disagree with me here by saying that the companies giving credit are big enough to fund all of this anyway without needing debt recovery tools. Two words 'Northern Rock'. Struggled with liquidity to fund itself and could have caused issues for thousands of customers.

 

The purpose of this post is that I'd like to know what those in debt think can be done to improve this industry as a whole and how to service those in debt better. There's a lot of experience and ideas on this forum that I'm sure would be useful, so I would like your ideas as to what could be done. Of course, I am talking at a high level here as opposed to peoples individual cases.

 

Why do I ask this? Well, my motives are simple. I've been in debt and had family in debt and experienced things from that side. I aslo work in the debt collection industry and have a voice where I believe I can make a difference to debt recovery practices. Of course, I still need to ensure that my clients get paid, so I am looking for sensible answers here.

 

Let me know your thoughts.

 

I am a voice within the industry, so use me. I'm open to ideas.

[spamheed]

only enforce when theyre legally entitled to do so

stop taking the p$$$ by telling lies to obtain a sale

take away the commission structure from DCAs employees

only allow a DCA top claim the price they have paid for a debt from the debtor.

Get retail sales training removed from the manual of DCAs

Only take a court approach when they have the paperwork to win the case, instead of wasting everybodies time.

 

If you can arrange any of the above, I'll be impressed

[mrmarmite]

1 play by the rules namely OFT DCA guidelines

 

2. treat people with respect when telephoning them (you might actually get some where)

 

3. when buying debts make sure you have the legal rights to enforce it.

 

4. when you receiver letters from debtors ACTUALLY answer them, not just send another template threat letter.

 

I'm sure there be more additions added to this list.

 

the reason why so many people refuse to talk on phone is the arrogance and intimidation from the DCA and result is debtors just putting the phone down. others is DCA's PROMISE things like reduced settlement, debtor agrees to this. next thing DCA claims they never made an agreement in the 1st place, so they lie, hence like shown on this site record ALL telephone calls.

 

i'm sure i'll add further later on.

[mtw1980]

Some good thoughts.

 

I totally agree with the legal issues. In fact, the DCA I work for wouldn't even look at working with a client if a debt couldn't legally be enforced. I personally think that it's a disgrace that companies start the legal process when debts can't be enforced, as this creates added & unfair pressure on those in debt to pay.

[mtw1980]

DCA's PROMISE things like reduced settlement, debtor agrees to this. next thing DCA claims they never made an agreement in the 1st place, so they lie, hence like shown on this site record ALL telephone calls.

 

i'm sure i'll add further later on.

 

Good idea on the call recording. As all reputable DCA's record all calls anyway, I'd like to see some way of providing access of recordings to the customer / debtor. Of course, this would need to be controlled access (DPA and the likes), and need some real thought as to how this should work.

 

Keep the ideas coming guys!

[mrmarmite]

like i said comuncate by letter only, then there is no arguments or missundertandings from either side

[spamheed]

I'm at a bit of a loss!!

 

how do you define a "reputable" company?

 

according to the banks, credit card companies and CRA, all of the debt collectors they use and represent are "reputable" yet the people on here say otherwise, so how would you define a "reputable" company?

[mtw1980]

 

only allow a DCA top claim the price they have paid for a debt from the debtor.

 

If a DCA was only allowed to claim the price they paid for a debt, they'd make a loss every time. We have to consider the man hours, trace costs, systems etc. put into chasing a debt.

 

If that was the case, then no-one would ever buy a debt.

[2Grumpy]

How about not attempting to make the person pay more than they can afford to pay

Refer clients to a (free) debt councelling service if they have more than 1 debt

 

 

Grumpy

[spamheed]

I think the simplest way of cleaning up the debt collection process is to remove the whole telephone contact thing, unless asked for by the debtor.

 

that way lying would all but be eliminated. so no further breaches of the data protection act would be made by DCAs and CRAs

[mtw1980]

I'm at a bit of a loss!!

 

how do you define a "reputable" company?

 

according to the banks, credit card companies and CRA, all of the debt collectors they use and represent are "reputable" yet the people on here say otherwise, so how would you define a "reputable" company?

 

Ok, that's difficult to define, but we have significant investement into processes, training, systems and the likes so we can ensure debtors are treated with respect, understanding and fairness.

 

The fact I'm on this forum trying to get peoples thoughts on how things can be improved from your perspectives should speak for something. I'll happily talk on this subject, but I want to keep this thread focussed on the industry as a whole, rather than digressing.

[mrmarmite]

to be honest what ever said won't change anything, DCA's are starting to get wet feet now and will catch a cold soon as they buy OC debt in the knowledge that majority is dead end

 

is this where i query your 1st post :

 

I'd like to know what those in debt think can be done to improve this industry as a whole and how to service those in debt better.

 

or it could be taken in different context. "help we loosing money now and want debtors advice on how we can get their money off them"

 

sorry but look on both sides of the fence here. the honest people on this site want to pay off there debts but they just cant afford the silly repayments you lot want so you send threat after threat after threat. on your side you pay 10-15% of total amount, and yet some dca still charge interest and instead of getting whats owed you make them go deeper into debt.

 

i can go on forever but i wont, i'm sure few other caggers will agree

[sosumi]

Hi MTW

Develop your approach to debt collection as a legitimate service to the people whose accounts you take on - they have effectively become your customers. Look to gaining and establishing real, genuine trust between yourselves and customers. Employ people trained in social skills. Stop looking to the short term 'results' - think long term loyalty from your customers instead. Learn about people - not as a trick or tactic, but to develop (and deserve) respect.

Help them, stop destroying them.

[mtw1980]

How about not attempting to make the person pay more than they can afford to pay

Refer clients to a (free) debt councelling service if they have more than 1 debt

 

 

Grumpy

 

I totally agree with you here. I think the likes of payplan and CCCS have a big role to play in the indsutry. This is something that I think all of us in the industry need to get hotter on - separating the can't pays (financial hardships) from the won't pays.

[spamheed]

would that be because their primary aim is the payment of debt, rather than assisting the customers as their bumf states?

[mrmarmite]

course it is spamhead buy a 2000 debt for 250, easy money

[mtw1980]

MrMarmite, I can understand your scepticsm here - I'd probably think the same as you. Let's think about it though, I didn't have to declare that I worked for a DCA, I just did that to be open and honest.

 

My thoughts are similar to those of sosumi - if people are treated with respect, as customers, and trust is built up, then everyone will be happy.

 

Think about it this way. If you could trust DCA's, those in debt would be more willing to speak to them & more people would at least pay what they could afford (without worry). Those that really can't pay would also have the burden lifted from their shoulders.

 

DCA's wouldn't lose out, and consumers would benefit.... That's my opinion anyway.

[monday blues]

Making sure when you purchase debts you have all the required paperwork, and stay within the law, like not trying to force payment or offer reduced settlements when you can't produce CCA's.

 

The buying of Statute Barred debts. DCA's know the rules. If they are unenforcable don't buy them.

 

The threatening of baliffs, door knockers and the general harassment, when you haven't completed the court process.

 

The one is is the worst is the rude calling centre staff you only know the the law of the DCA's not the law of the land. Educate them properly.

[mrmarmite]

My thoughts are similar to those of sosumi - if people are treated with respect, as customers, and trust is built up, then everyone will be happy.

 

Think about it this way. If you could trust DCA's, those in debt would be more willing to speak to them & more people would at least pay what they could afford (without worry). Those that really can't pay would also have the burden lifted from their shoulders.

 

 

100% agreement, lets take 4 DCA's we all know, Cabot, Robbingson way, wescot & moorcroft.

 

so far my dealings with in order best to worst:

Cabot, they have been plesent, non threatening.

Wescot. bless them but like to threat people.

Robbingson, treat customers like **** and shout down the phone at you.

Moorcoft, laughable on 1st letter "This letter is notice of littigation whether or not it's read by the intended person, never heard so much rubbish in me life,

[mrmarmite]

ooops soz, forgot capquest in there, odd threat letter, they love to send letters out where they just tick the box to the relevant question

[mrmarmite]

all that grumping set to one side my question to you is :

 

What do you think you can do to improve how DCA's work?

[mrmarmite]

you must know or have ideas that could be worked on so beneficial to both parties

[Belaflat]

The problems with some (most in fact) DCA's is that primarily they regard debtors as an asset to be realized, not people with homes, children and other worries.

 

I understand that it is a business and that they have costs to cover but the way that those who are making efforts to clear themselves are relentlessly pursued to make up for the debts that have been bought but are proving difficult to collect, is not fair and the methods used are unethical.

 

Companys are only too quick to dump defaulters for the tax breaks even if they have entered into and are maintaining a reduced payment plan. the DCA's then throw all courtesy, sympathy and understanding out of the window and start the mental torture of harrassment by letter and phone together with threats which are in the main, illegal if carried out as stated.

 

You are only too quick to use the Law in the form of CCJs etc when not needed and now when the consumer bites back and uses the Law against you, you start running scared and presenting a supposed decent face with numerous DCA calls for revisions of the Law.

 

Wolf in sheeps clothing comes to mind.

[mtw1980]

Keep you thoughts coming all!

[mrmarmite]

The problems with some (most in fact) DCA's is that primarily they regard debtors as an asset to be realized, not people with homes, children and other worries.

 

I understand that it is a business and that they have costs to cover but the way that those who are making efforts to clear themselves are relentlessly pursued to make up for the debts that have been bought but are proving difficult to collect, is not fair and the methods used are unethical.

 

Companys are only too quick to dump defaulters for the tax breaks even if they have entered into and are maintaining a reduced payment plan. the DCA's then throw all courtesy, sympathy and understanding out of the window and start the mental torture of harrassment by letter and phone together with threats which are in the main, illegal if carried out as stated.

 

You are only too quick to use the Law in the form of CCJs etc when not needed and now when the consumer bites back and uses the Law against you, you start running scared and presenting a supposed decent face with numerous DCA calls for revisions of the Law.

 

Wolf in sheeps clothing comes to mind.

 

 

yet again total agreement