Setting the Record Straight: Bad Local Press for Collection Agencies

Hatchet jobs against the collections industry are a perennial favorite with staff writers for newspapers and magazines looking to connect with consumers.

It’s an easy recipe: take exciting stats, misunderstand them, throw in some anecdotal and highly subjective details from consumers, shake, and pour into a shot glass.

The great thing is — and by “great” I mean “not really; it’s sarcasm” — readers rarely care if the information is wrong because the conclusions always feel right: collection agencies are coming for your daughter, Chuck, and they’re going to steal all of your money.

What follows is an account brought to us — and shared with you — by Friend of the Site, Nick Jarman. Nick is the Chief Operating Officer and partner of Delta Outsource Group, Inc. a nationally licensed collection agency located in Lake Saint Louis, MO. He recently picked up a copy of a local magazine, Mid Rivers Newsmagazine, where he read an unflattering piece about the collections industry.

His call to arms at the end is an important one: “When you read something negative about our industry, don’t sit back and take it: fight back with your insight and set the record straight.” I’ll let Nick take it from here.

– Mike Bevel, Associate Editor

I recently saw a local weekly newsmagazine with a cover story “Bad Debts: Some Collectors Going After Fake Debts” and was intrigued at what the substance of the article could be.

Not to my surprise, it was another article with an attempt to utilize one instance of a rogue collection agency to generalize how “most” collectors operate. Also, and ironically, the story appeared in the magazine’s charity issue.

The article started off about how in “too many” cases, collection agencies hound unsuspecting consumers in attempts to get them to pay debts that are not theirs. It went on to state that collectors were essentially acting illegally when attempting to collect debts that were outside the statute of limitation, failing to mention that statute of limitation refers to legal action and not collection activity. The article then emphasized how debt collectors lead the list of consumer complaints, leading into how the debt buying industry is “booming” because portfolio prices were at all time lows and their profits are at all time highs.

The writer, of course, wanted to pack as much punch as she could by portraying debt collectors and the collections industry in a negative fashion. Along the way, she failed to substantiate or validate her allegations against “most” debt collectors. While this kind of press isn’t surprising, it is almost always dispiriting.

After reading this I was furious and felt compelled to address the article. I contacted the editor and wanted to write an op-ed; however, he refused, suggesting that he would publish a letter to the editor instead.

I addressed the entire article as “too broad and too vague” and not an accurate reflection of true collection agencies that are licensed, insured, and bonded. I clarified the definition of statute of limitations, along with providing a more accurate and up-to-date perspective on the debt buying industry.

My focal point was about complaints and the fact that less than a fraction of one percent of our consumer contact leads to a complaint, which is by far the lowest of any industry, and debt collectors should be applauded for that fact.

Ultimately, as with any industry, we are not perfect; but we are not nearly as horrible as the media like to imply. We have to take pride in what we do, who we help, and the positive economic impact we have. It is imperative as an industry we stand together with one industry and one voice when it comes to advocating for the good name of what we do.
When you read something negative about our industry, don’t sit back and take it: fight back with your insight and set the record straight.