The New York Times Praises Collectors on Front Page

Hold on to your hats … the New York Times is running a positive story on the debt collection and ARM industry on the front page of its Friday edition.

The national paper of record offers a featured article entitled “As Debts Pile Up, the Collectors Try to Put on a Friendlier Face.” The article explains that as the ARM industry grows at a rapid pace – a 23 percent projected growth rate from 2006 to 2016 – collection executives are increasingly looking to soften the image of collectors and adopt a “catch more flies with honey” approach in dealing with debtors.

The article includes quotes from representatives from all over the industry, including ACA International, DBA International, and the National Association of Retail Collection Attorneys (NARCA).

The rare positive story in a venerable national paper like the Times caught the industry a little off guard.

“This is not your typical article on debt collections,” said Manuel H. Newburger, an attorney with Barron, Newburger, Sinsley & Wier, a law firm in Austin, Texas that represents creditors. “It’s nice to see recognition of the efforts the industry has been making to ensure compliance with the FDCPA and other consumer laws and to build good consumer relations.”

Cynthia White, executive director of NARCA, said the organization had worked with reporter David Streitfeld on the story but wasn’t sure how it would turn out. "It was a surprise. It was generally pretty positive," said White.

The Times article notes the difficulties that collectors face as they attempt to collect debts from strapped consumers in the midst of an economic downturn. Streitfeld points out that collectors generated nearly 70,000 complaints to the Federal Trade Commission last year, and that many consumers contend that collectors harass them with continual calls that can become abusive.

Consumer protection attorney Cary Flitter, with law firm Lundy, Flitter, Beldecos & Berger, contended the article did not adequately emphasize the the amount of consumer complaints. "Collection aggressiveness is as heavy-handed as it ever was," he said. "The notion that collectors care about consumers is absurd."

The piece offers the collection industry’s long held view on consumer complaints – for every one complaint there are millions of consumer contacts that are businesslike that help the debtor get even on a bill.

Barbara Sinsley, the general counsel of the Debt Buyers Association, said the article accurately portrays the everyday approach to collections that has become the industry norm.

“If you treat people like a customer it makes you more money. A lot of companies work this way. It’s just good business practice,” said Sinsley.

She said that the DBA is in the process of revising its ethics rules, conducts out reach efforts with consumers and their attorneys, and works with the FTC to address its concerns.

This month, trade organization ACA International will launch an national education campaign designed to help consumers that have fallen into debt, said Rozanne Andersen, senior vice president and general counsel. "This will cover ‘What to do when you find yourself in financial difficulty, What to do when a collector calls, and How to work with a collector to solve their problems,’" said Andersen. "We see a problem and want to be part of the solution."