Fightin' Words: MSN Money Sucker Punches Debt Collectors

The debt collection industry found itself on the receiving end of two black eyes last week, each blow delivered at the hands of a major mainstream media outlet. And although the enduring, collective harm done to the reputation of ARM companies in the two instances will vary in degree and kind, both events merit a response from anyone reading this blog.

Tomorrow I’ll address the second—and arguably more lethal—wound. For now, let’s focus on the less complicated of the two.

Last Thursday, national consumer finance columnist Liz Pulliam Weston published an article on MSN Money entitled (variously) “Debt collectors get help from police” or “Debt-collector bullies at it again.” If your defenses aren’t up already from reading those titles alone, they should be.

I read the article several hours after it was published and wrote a somewhat lengthy response in the article’s comment post. Shortly thereafter I referenced the article and my objections to it on various credit and collections LinkedIn groups. In addition I sent an email to Ms. Pulliam Weston, briefly noting my concerns and requesting a call to discuss the matter with her. (Ms. Pulliam Weston kindly responded, saying that her current travel schedule was rather hectic but that we could talk at some future date.)

By my cursory accounting of the article, Ms. Pulliam Weston commits no less than five basic factual errors about collection agencies in her text, including (but not limited to): confusing or conflating third party contingency agencies with debt buyers, suggesting that collection agencies (themselves) commonly file lawsuits against consumers, claiming that debt collectors manipulate law enforcement officials into arresting debtors, and, by extension, preventing police and the U.S. judicial system from apprehending and prosecuting “real criminals.”

Note the spurious logic of this last claim carefully. Ms. Pulliam Weston argues that you, as a collection industry professional, are complicit in allowing shoplifters, murderers, and jaywalkers to run wild on the streets of America.

Beyond the article’s factual blunders, Ms. Pulliam Weston—who let us remember “hates bullies, and too many collection agencies these days are big, fat bullies”—engages in a string of schoolyard name calling. I suppose Ms. Pulliam Weston believes herself immune from being a bully herself when she preaches from the bully pulpit.

About now I imagine many of you are thinking: so what? This kind of stuff happens all the time. If in fact that’s your current frame of mind, allow me to shed some light on the rare opportunity in front of you.

Ms. Pulliam Weston’s bio on MSN Money describes her as “the Web’s most-read personal-finance writer.” This claim is authenticated by a 2008 Nielsen NetRatings study that showed Ms. Pulliam Weston receives “20 times the readership of any other personal finance column on the Web.” The numbers are reportedly in the millions.

And so I say: you have been given a blessing and a curse. The curse is the black eye. The blessing is a national platform on which to respond. To passively take your lumps and refuse the chance to contest these claims is irresponsible.

And so I pose a direct challenge to you:

Read Ms. Pulliam Weston’s article here.
Then read my comments under the username MichaelRK.
Then take 5 minutes out of your day and complete the simple registration required to post a comment of your own.
And, finally, post a comment based on your own experience and industry knowledge.

Consider the power of 10, 50, or 100 ARM industry professionals’ reasoned commentary on this stereotype-laden diatribe. Consider the impression you could make on 25 or 25,000 consumers. Consider the message you could send to Ms. Pulliam Weston or the editor of MSN Money by making your voice heard.

Or consider the alternative: sitting idly in your office with a rapidly melting bag of frozen peas on that ugly black eye.

Michael Klozotsky is Managing Editor of insideARM.com. He can be reached by email.