Press Piling on Collectors ? In a Good Way

More of this, huh? Weekly business magazine BusinessWeek is running a laudatory article on the debt collection industry on its web site today. Maybe “laudatory” is a strong word … it just isn’t negative, a change for collectors of course.

The article looks at the growth opportunity for the accounts receivable management community in light of a sour economy and strained credit; not exactly breaking any new ground, but definitely a positive mention.

It follows a small string of positive mentions in mainstream media for the account receivables management industry. The New York Times has run two great articles on debt collectors in the past month: A local piece on Buffalo-area collection agencies supplying much-needed jobs to the region and a front page feature on collectors improving their image. USA Today then ran a letter to the editor from NARCA president Bob Markoff which explained the collections business from the industry’s point of view.

All of this positive press is not an accident. Industry trade groups have been engaged in a deliberate campaign to bolster the image of collectors, as insideARM reported this week (“Debt Collection Industry Invests in Capitol Hill Campaign,” April 9). In the article, we mentioned the lobbying efforts of ACA and the public relations push from NARCA, but they’re not the only ones working for the industry.

Gary Wood, past-president of debt buyers’ group DBA International, emailed me yesterday noting that they have also been active on Capitol Hill lobbying for ARM interests. DBA has had a relationship with a Washington-based law firm for more than two years that has taken the group’s case to members of Congress and various relevant government agencies.

While influential trade groups are working on the entire industry’s behalf, I think there is an opportunity for individual collection agencies and debt buyers to make their mark locally.

As the “credit crunch” expands – and the economy contracts – there will be a lot of press concerning consumer credit and past-due bills. ARM firms should take this opportunity to pitch stories to local media about how they are helping consumers during these difficult times. The stories are going to be written anyway, we might as well get our voices in them.