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

A few weeks ago I attended ACA’s Convention in Washington, D.C. and sat in on the session by Leslie Bender and Valerie Hayes explaining the facts surrounding the new Bureau of Consumer Financial Protection.

The two attorneys offered a clear and relatively judgment-free account of the scope of authority it seems this Bureau will have over the accounts receivable management industry. Clearly most in the room arrived steeled for bad news and prepared to view the facts as negative.

I have mixed feelings.

As a consumer, I like a lot of what the Bureau is supposed to do – reign in the big banks and avoid the kind of finger pointing and lack of accountability that my five year old twins display: "It’s her fault…no, it’s his fault!"

It also seems to me that with all the complaining by our industry about the Fair Debt Collection Practices Act (FDCPA) over the years, it would be useful to have an organization that could act to clarify/update/improve on important regulations guiding the business of the industry. Of course, if you make the assumption that any action taken will be negative for collectors, then this is scary. At least the devil you know isn’t subject to change without notice.

What if we took a positive view? What if tighter controls on creditors mean that processes become more standardized? That could really reduce costs and help to level the playing field, wouldn’t it? It could also mean that better data will be provided to collection agencies and debt purchasers, which can only help to reduce complaints down the line. That would be good, wouldn’t it?

At the moment, it seems to me that debt collectors are the ones hung out to dry because they’re the ones making the phone calls. More often than not, creditors and debt buyers have run under the radar. I see the new order as a way to help ensure that everyone carries their load.

As a publisher of information for debt collection agencies, of course it’s important to me that the industry remains robust and healthy. It would certainly be helpful to me if the world had a positive view of my audience and if my audience enjoyed great profitability. It would also be great if the rules of publishing would stay the same so that my revenue streams wouldn’t be a moving target. But we all know this is not reality. We’ve all got to adapt to a changing world, and rise to the challenge.

We need to get creative. We need to re-think our businesses. We need to respond to the real needs of the customer…not just what we have to sell them. And we need to look at ourselves and not make the assumption that the problems are caused by "the other guy."

Stephanie Eidelman is the the President of Kaulkin Media and the Publisher of insideARM.com. She can be reached by email.