Collector - March 2018 - 31

war. While only 4 percent of respondents
said they chose not to pay their debts even
though they had the resources to do so, more
than 20 percent were using their credit cards
to help supplement their monthly earnings.
With the tighter job market and the need
to attain advanced education degrees, many
millennials find themselves delaying home
purchases or starting families because of
their debt levels. More astute consumers in
this generation have started to change their
spending habits and place more emphasis
on having good credit in order to find their
personal financial wellness.

CHALLENGES TO COLLECTIONS
Using traditional methods to collect from
Gen Xers and millennials often will not
lead to desired results-either payment
in full or even a partial payment. When
dealing with tech-savvy consumers who
only want to communicate through the
same technologies that potentially create
compliance issues for collectors, there needs
to be an increased emphasis on ensuring
that clear communications are established
with these generational consumers and that
collectors fully explain the need to obtain
permissions necessary to conduct business.
Again, because the Fair Debt Collection
Practices Act and various other statutes and
regulations do not account for the use of text
messaging, cell phones or other state-of-theart communication methods, it's critical that
collectors develop a rapport with consumers
that includes education about the safeguards
you are offering them by being compliant.

Average
Nonmortgage
Debt By Generation
BABY BOOMERS | $27,513
GEN X | $30,334
MILLENNIALS | $22,784
Source: Experian

COLLECTOR 03.18

Not only does relationship-building enter into
the equation for successful collection efforts, but
a counseling component to assist consumers in
understanding and managing their debts will
more likely lead to a positive outcome, especially
when they seek to have that knowledge and
need to connect with their collector.
Educating consumers about their payment
options and the value of establishing or rebuilding
credit can assist in ultimately resolving the
delinquent balances. These individuals often
need guidance in seeing the benefits of timely
resolution. In some cases, consumers may
have substantial debt and limited resources,
leaving them overwhelmed and at a point of
inaction in resolving their debts.
Collectors may also have to overcome the
mindset that creditors have "deep pockets"
and can afford not having consumers
pay their debts as agreed. In other cases,
objections about the quality of education or
services/products received can create stalls for
nonpayment of student loan or credit card debt.
If you encounter these objections, it is
important to listen to the consumer's concerns
and have the documentation available to
refute factual arguments. Although there
may not be a formal dispute of the debt, be
prepared to quickly respond to these inquiries
since members of these generations expect
immediate action and response.
Knowing your consumers and
understanding their background and
motivations remains the best tool for
maximizing collections on delinquent
accounts. Simply demanding payment in
full will not necessarily work when talking
to members of different generations. Taking
on the role of counselor and educating
consumers from younger generations will
more likely create a positive resolution and
facilitate recovery of outstanding balances
while also enabling the consumer to develop
positive payment habits-which will be
beneficial particularly when a longer-term
payment plan is needed to pay off the debt.
David R. Glezerman is assistant vice
president and bursar at Temple University in
Philadelphia. He can be reached at
david.glezerman@temple.edu.

KEYNOTES

1

Understanding the
characteristics of each
generation can provide
some insight into the hows
and whys of consumer
delinquency.

2

While baby boomers
respond well to
traditional communication
methods like letters and
phone calls, tech-savvy
Gen Xers and millennials
typically prefer to
communicate through email
and texts.

3

Thanks to financial
literacy gaps, younger
consumers may benefit
from collectors who act as
financial counselors.
31



Table of Contents for the Digital Edition of Collector - March 2018

From the Editor
Industry News
Best Practices
FYI
Collection Tips
Enriching the Diversity Conversation
A New Take on Skiptracing
Collecting From Different Generations
Calendar
Honor Roll
Are You an ACA Professional Collection Specialist?
Understanding the Credit Reporting Landscape
An Inside Look at ACA’s Judicial Advocacy Efforts
Break It Down
ACA Files Amicus Brief with Court of Appeals in Case Combatting TCPA Abuse
Compliance
ACA SearchPoint
Last Word
Collector - March 2018 - Cover1
Collector - March 2018 - Cover2
Collector - March 2018 - 1
Collector - March 2018 - 2
Collector - March 2018 - 3
Collector - March 2018 - From the Editor
Collector - March 2018 - 5
Collector - March 2018 - Industry News
Collector - March 2018 - 7
Collector - March 2018 - 8
Collector - March 2018 - 9
Collector - March 2018 - Best Practices
Collector - March 2018 - 11
Collector - March 2018 - FYI
Collector - March 2018 - 13
Collector - March 2018 - Collection Tips
Collector - March 2018 - 15
Collector - March 2018 - Enriching the Diversity Conversation
Collector - March 2018 - 17
Collector - March 2018 - 18
Collector - March 2018 - 19
Collector - March 2018 - 20
Collector - March 2018 - 21
Collector - March 2018 - 22
Collector - March 2018 - 23
Collector - March 2018 - A New Take on Skiptracing
Collector - March 2018 - 25
Collector - March 2018 - 26
Collector - March 2018 - 27
Collector - March 2018 - Collecting From Different Generations
Collector - March 2018 - 29
Collector - March 2018 - 30
Collector - March 2018 - 31
Collector - March 2018 - Calendar
Collector - March 2018 - Honor Roll
Collector - March 2018 - Are You an ACA Professional Collection Specialist?
Collector - March 2018 - 35
Collector - March 2018 - Understanding the Credit Reporting Landscape
Collector - March 2018 - 37
Collector - March 2018 - An Inside Look at ACA’s Judicial Advocacy Efforts
Collector - March 2018 - 39
Collector - March 2018 - Break It Down
Collector - March 2018 - 41
Collector - March 2018 - ACA Files Amicus Brief with Court of Appeals in Case Combatting TCPA Abuse
Collector - March 2018 - 43
Collector - March 2018 - Compliance
Collector - March 2018 - 45
Collector - March 2018 - ACA SearchPoint
Collector - March 2018 - 47
Collector - March 2018 - Last Word
Collector - March 2018 - Cover3
Collector - March 2018 - Cover4
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