Do You Want a National Debt Registry?
This summer, ACA International's Board of Directors gave the A-OK for further discussions and additional research on a national debt collector registry.
Although the project is hovering in the idea stage right now, in theory, it would "require every individual debt collector as defined by the Fair Debt Collection Practices Act or applicable state law to be registered and pass an examination based on critical job benchmarks. Also, the registry would increase accountability by enabling industry employers to track complaints filed against individual collectors," according to the association's release.
ACA says it expects to know more about this registry idea in the next six to eight weeks.
I want to know what CT.net members think. Is a registry a good idea? Will it breed greater accountability? And how do you think it should work?
Although the project is hovering in the idea stage right now, in theory, it would "require every individual debt collector as defined by the Fair Debt Collection Practices Act or applicable state law to be registered and pass an examination based on critical job benchmarks. Also, the registry would increase accountability by enabling industry employers to track complaints filed against individual collectors," according to the association's release.
ACA says it expects to know more about this registry idea in the next six to eight weeks.
I want to know what CT.net members think. Is a registry a good idea? Will it breed greater accountability? And how do you think it should work?
Tags: acainternational, debt.registry
Replies to This Discussion
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Permalink Reply by Shawn Yates on -
Every agency should already be doing this internally so I do not see the issue. If the ACA wants to charge a hefty fee to participate then that is an issue. Otherwise, I do not see a problem.
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Permalink Reply by Gina McNaughton on -
Is is too late??
Congress may pass the proposed Consumer Financial Protection Agency (CFPA) headed up by Chair Elizabeth Warren of the Congressional Oversight Panel (COP). Debt Collection will fall under this new Agency that is being forced on Congress by POTUS.
More on CFPA..
http://www.financialstability.gov/docs/regulatoryreform/strengtheni...
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Permalink Reply by Jennifer Bellworthy on -
Yeah - right. Because Obama has been so successful "forcing" things on congress.
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Permalink Reply by DONALD F DALY on -
No! NO! NO! All this project amounts to is more goverment. MISSION IMPOSSIBLE~There is no way this could be accomplished without some very expensive fees to qualify to become a registered collector. Employers should know who their problem collectors are already. Our government has been writting laws to moniter and sterilize the third party debt collection industry since 1977 and it seems they still aren't done, enough is enough! Training and monitoring of employers is all that is needed. Why would the A.C.A. even give this a second thought? The A.C.A.has got alot more solveable problems they should be dealing with instead of cuddling up to some idea that their very own industry needs more monitoring. Who's side are they on anyway? How does the originator of this idea expect to be able to register, monitor, record and punish every individual debt collector? Every credit operation in the world has a "debt collector" to watch over their outstanding recievables so does this hair~brain idea cover everyone or do they propose to target only the third party collector? The idea is a CLUNKER and so is the originator! I quit A.C.A. a long time ago because of the lack of representatiion to their paying membership. A.C.A. has become nothing but a political group trying to appease every elected official to gain popularity instead of drawing a line in the sand and taking on our cause.
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Permalink Reply by Debbie Snyder on -
The proposal would supposedly be funded by requiring that every registered collector pay a fee of $100 per year. And, last I heard, the difinition of "debt collector" would include anyone who has anything to do with collecting a debt or who receives training in debt collection. In other words, every employee of every collection agency, law firm, and possibly every credit grantor would qualify. Such fees could put small agencies and firms out of business. And the "bad guys" will just keep changing names and addresses as they do now to avoid regulation. It will unfairly strap the ethical collectors and have very little effect on those who break the law.
As far as the new government agency, I will wait and see what the FTC recommends insofar as the FDCPA. I don't think that either the FTC or the Banking Regulators are going to willingly give up their oversight and I sure don't see the states willingly giving up their own control.
ACA has formed a committee to make a recommendation but the vote at national was narrow. Personally, I don't see any advantage to the average agency or collector and I don't think any of the regulatory agencies are going to give up their control to ACA any more than they would to Obama's suggested new agency.
Should be an interesting show to watch though and well worth keeping an eye on.
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Permalink Reply by S.L.G., LLC on
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Maybe if this was part of a total pre-emption of all state licensing laws, as the state and local schemes are starting to get too complex. Otherwise, it's just one other problem on the road to profitability. Really the market and industry is hurting so much at this point that there won't be many consumer collectors left if you throw any more schemes like this around--at least not at the fees that have been paid in the past. Ultimately if fees must rise, the consumer will again pay a high price for "protection" as the creditors pass on these costs.
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Permalink Reply by Lynne Izzo on
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Depends on how they go about it, but if it is going to be complicated and not serving an effective purpose for all, then forget it.
Lynne Izzo/Debt Collection Consultants
California
www.debtcollectionconsultants.com
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Permalink Reply by Michelle Dunn on -
I do not think this is a good idea. I also think Gina is correct and that congress is still looking at the proposed Consumer Financial Protection Agency and debt collection falls under the new agency (see Gina's reply). Also, with the FDCPA being looked at and restructured, rewritten and changes being proposed, just that in itself will be a hurdle for this industry to comply with once something is done. Being a member of the ACA for over 11 years I am surprised this is something they are suggesting or spending time and money on. Who would be in charge of this program, the ACA? This would be a huge project and how would it be enforced? It doesn't seem feasible or workable to me, but I may not have all the facts. Every business has a credit department, a credit manager, an A/R clerk and collector or collectors, never mind the 3rd party agencies out there. I am just not seeing how this would work, unless the ACA is going set up a new company or "non-profit" entity to possibly monitor, research, enforce, process, punish and compile information as people come and go as collectors in every business or agency out there, and would this be international or just in the U.S. Is the ACA proposing they should be in charge of such a thing?
Another fee to be on another list to make sure you are doing your job correctly? In this economy, can you afford to do this? I know many businesses are struggling and this added fee with no benefit, could put them over the edge. The good guys will sign up and the bad guys won't - who is going to go looking for the collectors who have not signed up? Who will monitor as collectors leave jobs and new collectors are hired in the position, will it be the agency owners responsibility or the business owners responsibility to report this information and what happens if they don't report it or don't want to participate, is there a choice?
I am interested to hear what the advantage to something like this is - I am not seeing any advantage at this point.
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Permalink Reply by Jennifer Bellworthy on
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Why would the ACA be in charge of such an organization? It is a debt collector's lobbying group. I serious doubt congress would let the fox guard the hen house. It would be like putting it in the hands of NACA. (www.naca.net). We would want that.
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Permalink Reply by Marvin Smith on -
If the national registry would supersede individual states registry requirements it would certainly make compliance easier but this is really a proposal to further marginalize state's rights and is nothing more than a money grab that will cost agencies millions.
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