Collector – June 2019 - 23

If your clients sent you a wave of new
accounts, would you have the capacity
to quickly scale up? Technology can help
you adapt to changing account volume,
and once you get it in place you'll want to
let your clients know you can meet their
needs now and in the future.
But implementing new technology is
not necessarily a quick project. Granger
pointed out a full-scale technology refresh
could take a year to implement, but even
smaller scale plug-and-play tools need a few
months to get up and running smoothly.
The bottom line? Start planning now.
In a recession, account volume increases
while propensity to pay decreases. New
technology enables agencies to rely on
automation rather than rushing to hire
staff, which can expose your agency to risk
from inadequately trained collectors.
Consumers have gotten increasingly
comfortable with the intersection of
finances and technology in the last 10
years. Self-service options abound, and
agencies are focused on providing a good
"consumer experience."
How do consumers want to be
contacted? What kind of choices can you
give them? Increasing and modernizing
consumer engagement now will help you
down the road.
Hand in hand with offering a multipronged approach to communication is the
education you can give consumers on why
paying their delinquent debt matters, and
how they can do it in a way that fits with
their current lifestyle.
"From an agency's perspective, you want
to engage with consumers on the terms
they set, and also move away from this
being perceived as a negative experience,"
Komos said. "Obviously the days of very
aggressive collection techniques are long
gone. Now we view debt collection as an
opportunity to drive loyalty and provide a
positive customer experience for someone
who may be experiencing financial
hardship. I think the single biggest change
in the industry from 2008 to now is the
rise of consumer empowerment and focus
on providing financial education. Today


agencies realize this is an opportunity to
help the consumer."

It's not all doom and gloom out there. In
fact, Lamm says a correction could bring
new opportunities to the market. For
instance, big banks were hit hard by the
Great Recession, and many drastically
slashed their agency vendor network,
in some cases by 80 to 90 percent. If the
default volume picks up, banks will need
more internal and external resources to
manage it. Get your sales team ready.
This shift applies to all markets, Lamm
said, not just financial services.
"Health care, student loans, government-
everyone will need more vendors in some
capacity when the economy changes," he
noted. "If I was an agency trying to figure
out how to prepare for this, I'd be making
sure I'm in front of whatever target market
that I was terminated from or may have had
trouble penetrating earlier because they are
more likely to be receptive."
Big economic shifts can also open the
playing field to brand-new market segments.
Ginsberg noted that banks were the most
impacted asset class of the Great Recession,
but their pullback led to the rise of credit
unions, fintech and peer-to-peer lending.
"I think owners and executives of
businesses in the accounts receivable
management industry, small to large, should
take a breath and think about where they
want to be and how long they want to be in
the industry, and start preparing themselves
more proactively than reactively," Ginsberg
said. "This tends to be a reactive industry.
That's not unusual even in other industries
when you have many smaller, mostly
privately held companies. But this is an
opportunity, and if they can prepare for it
they might be less impacted. Preparation on
the front end won't eliminate the risk, but it
will reduce the impact of volatile changes in
the market."
Anne Rosso May is managing editor of
Collector magazine.



Plan for the next
recession. Modernize
your approach to consumer
communication now and
make sure you're accounting
for macroeconomic trends in
your forecasts and budgets.


The best time for the
ARM industry is when
the economy emerges from
a recession. Placement
volumes remain high
but increased consumer
confidence boosts
propensity to pay.


A recession can
introduce business
opportunities, including
new market segments and
creditors looking to increase
their vendor network.


Collector – June 2019

Table of Contents for the Digital Edition of Collector – June 2019

President’s Page
Industry News
Best Practices
Collection Tips
Adapting to a New Environment
“Today agencies realize this is an opportunity to help the consumer.”
ACA International’s 2019 Convention & Expo
Close the Revolving Door
Honor Roll
Education Spotlight
Ask the Experts: Small Talk
Growing into the Industry
CFPB Releases Proposed Debt Collection Rule
Industry Advancement Program Helps Member Defeat FDCPA Claim in Ninth Circuit
ACA SearchPoint
Ad Index
Last Word
Collector – June 2019 - Cover1
Collector – June 2019 - Cover2
Collector – June 2019 - 1
Collector – June 2019 - 2
Collector – June 2019 - 3
Collector – June 2019 - Industry News
Collector – June 2019 - President’s Page
Collector – June 2019 - 6
Collector – June 2019 - 7
Collector – June 2019 - 8
Collector – June 2019 - 9
Collector – June 2019 - Best Practices
Collector – June 2019 - 11
Collector – June 2019 - FYI
Collector – June 2019 - 13
Collector – June 2019 - 14
Collector – June 2019 - 15
Collector – June 2019 - Collection Tips
Collector – June 2019 - 17
Collector – June 2019 - Adapting to a New Environment
Collector – June 2019 - 19
Collector – June 2019 - 20
Collector – June 2019 - 21
Collector – June 2019 - Close the Revolving Door
Collector – June 2019 - “Today agencies realize this is an opportunity to help the consumer.”
Collector – June 2019 - ACA International’s 2019 Convention & Expo
Collector – June 2019 - 25
Collector – June 2019 - 26
Collector – June 2019 - 27
Collector – June 2019 - 28
Collector – June 2019 - 29
Collector – June 2019 - 30
Collector – June 2019 - 31
Collector – June 2019 - 32
Collector – June 2019 - 33
Collector – June 2019 - Calendar
Collector – June 2019 - Honor Roll
Collector – June 2019 - Education Spotlight
Collector – June 2019 - 37
Collector – June 2019 - Ask the Experts: Small Talk
Collector – June 2019 - 39
Collector – June 2019 - Growing into the Industry
Collector – June 2019 - 41
Collector – June 2019 - Exploring STIR/SHAKEN
Collector – June 2019 - 43
Collector – June 2019 - CFPB Releases Proposed Debt Collection Rule
Collector – June 2019 - 45
Collector – June 2019 - Industry Advancement Program Helps Member Defeat FDCPA Claim in Ninth Circuit
Collector – June 2019 - 47
Collector – June 2019 - ACA SearchPoint
Collector – June 2019 - Ad Index
Collector – June 2019 - Membership
Collector – June 2019 - 51
Collector – June 2019 - Last Word
Collector – June 2019 - Cover3
Collector – June 2019 - Cover4