California Collectors Amend Bylaws to Allow Choice of ACA Membership

The California Association of Collectors will allow its members to decide whether they want to be members of ACA International – a decision that may affect its state unit status and entice other ACA state units to follow suit.

The unanimous vote came last week during CAC’s annual Legal and Legislative Conference in Sacramento – and has as much, if not more, to do with economic pressures as a membership discontent with some of ACA’s recent actions (“Significant Actions Taken at CAC’s 2010 Legal and Legislative Conference,” April 23).

“There’s an economic end to this and as an executive body this is member driven,” said Brian Davis, president of CAC Inc. and Coast Professional, a firm specializing in education receivables. “This simply is allowing members a choice as we reviewed ACA bylaws. The vast majority of CAC members are still committed and proud members of ACA International despite any past disagreements in philosophy and approach to various issues.”

Jerry Greenblatt, president of Inland Capital Services, told insideARM that about 7 percent of CAC’s membership had already received membership cancellation notices from ACA for non-payment of dues.  He said CAC’s bylaw amendment ensures that collection agencies that operate in California are provided with the education, legislative representation, products and services that will allow them to continue to do business with integrity.

“It helps ensure the industry that agencies have a way of keeping up with the laws so they can stay in compliance,” said Greenblatt, who also is CAC’s President-Elect.

ACA has told insideARM that its bylaws require state unit members to be ACA International members. CAC, however, said it has studied ACA’s bylaws and legally determined that CAC’s bylaw amendment does not violate ACA rules.

ACA Spokesman Mark Schiffman told insideARM that the group is awaiting more information from CAC about its interpretation of the organization’s statute. He said the board of directors will decide if CAC’s bylaw amendment is compliant with ACA’s bylaws and consider what action to take when it meets in July.

CAC is ACA’s oldest and largest state unit, with nearly 350 members, down from about 400 six months ago.  CAC Executive Director Jan Stieger said mergers and closures have caused the membership to decline to nearly 350 from 400 a year ago. Still, CAC represents roughly seven percent of ACA’s total membership.

ACA still recognizes CAC as a state unit and it’s “business as usual,” Schiffman said. However, the board’s decision could affect CAC’s status as a state unit, if it determines CAC violated ACA rules. That decision also could have significant implications on the organization’s relationship with other state units.

If CAC’s amendment, however, is ruled in compliance, other state units may follow suit in allowing members to choose ACA membership. While ACA also generates revenues through training, insurance coverage, and state and federal compliance programs, allowing a choice of membership will impact the predictability of annual revenues, especially during economic recessions.

ACA hoped it had assuaged CAC’s decision to amend its bylaws regarding ACA membership. Last year, CAC members voted to table a similar amendment that was prompted by concerns that ACA was acting on major issues without membership consent (“California Association of Collectors Votes to Stand Pat on ACA Membership Ties,” September 25, 2009). CAC postponed the vote to give ACA a chance to address their concerns, which CAC said they were doing.  However, a simple motion at CAC’s winter conference was all that was needed to bring the amendment to a vote sooner – this time for economic reasons.

“There was no fist shaking at this point,” Davis said, who added that during the same meeting members approved a $15,000 contribution to support ACA’s effort to oppose the current proposal before the FCC which would severely limit member’s ability to communicate with debtor consumers via cell phones when using a dialer.

Greenblatt said going forward it will be up to each organization to provide the leadership and value that members seek if they want to retain them on their roles.

“A person should not be forced to belong to any association,” he said. “A person should be a member of an association because they see value to their business.”