Nice Guys Don’t Always Finish Last – The Americollect Story

February 22, 2012 By Leave a Comment

CEO of Americollect in Wisconsin wins award

I was very pleased to learn that this past week a debt collector, Americollect of Manitowic, Wisc., won the Chamber of Commerce award for Large Business of the Year award.

Rarely do debt collectors get praised for anything, so this is notable right out of the gate. Upon closer examination, Americollect should not only be praised for running a successful business, but for running it in the right, “nice,” way.

Here’s what jumped out to me when I learned of Americollect and their CEO, Kenlyn Gretz:

  • They call the people they are collecting from “customers.”
  • They preach a win-win collection model.
  • The company and employees donated to 52 non-profits last year.
  • They have a A+ rating from the Better Business Bureau.
  • They CEO attributes their growth the their quality personnel and corporate culture.

Americollect has been in business since 1964. This is obviously no accident. When you run a debt collection operation ethically, it can be both a profitable and honorable profession. Honorable because one of the “Wins” in Win-Win means that the customer gets a helping hand out of debt. This is a great thing for all concerned…including society at large.

Well done Kenlyn & Americollect!

Bill

Hi, I'm Bill Bartmann and I am on a mission to reform the debt collection industry in America. Please join with me as we bring a petition to Washington D.C., and make Congress close all the legal loopholes in debt collection practices. It's time to stop these debt collection abuses and stop these criminals. Join with me! Sign the petition today! http://stopthesecriminals.com/petition

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Filed Under: Debt, Debt Collection

What If…

February 20, 2012 By Leave a Comment

What if…. the neediest among us were treated with dignity and respect. What if debt collectors got better results from treating people with dignity and respect, than harassing, intimidating and insulting. What if debt collectors had to be licensed, like other professionals. What if there were financial penalties when debt collectors behaved improperly?

What if… consumers were allowed to record debt collector calls? What if those recordings were able to be used as evidence in a court of law? What if banks were financially liable for the misdeeds of the collectors they selected to work with?

What if… having complete and accurate records increased the amount a bank could sell a delinquent loan for? What if Congress passed a law making it illegal for debt collectors to call a consumer more than once in a 24 hour period? What if misdeeds are more financially rewording to debt collectors than behaving legally and humanely?

What if we do nothing?

what if debt collectors

What if...

Bill

Hi, I'm Bill Bartmann and I am on a mission to reform the debt collection industry in America. Please join with me as we bring a petition to Washington D.C., and make Congress close all the legal loopholes in debt collection practices. It's time to stop these debt collection abuses and stop these criminals. Join with me! Sign the petition today! http://stopthesecriminals.com/petition

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Filed Under: Debt, Debt Collection

CFPB Causes Debt Collectors to Shudder

February 17, 2012 By Leave a Comment
Consumer Financial Practices Bureau cracks down on debt collectors

Consumer Financial Practices Bureau

In it’s first expansion of powers, the Consumer Financial Practices Bureau (CFPB) (also @CFPB on Twitter) has set it’s regulatory sites on debt collectors (and credit bureaus), privately sending shock-waves throughout the industry.

“Debt collectors and credit reporting agencies have gone unsupervised by the federal government for too long,” CFPB Director, Richard Cordray, told reporters

While no industry wants to be regulated by the government, if ever there was an unregulated industry that needed government supervision, it’s debt collection. According to the FTC, no industry has more complaints from consumers then debt collection.

The CFPB proposal includes the bold act of sending regulators into the offices of the largest debt collectors to observe their practices first hand. While an aggressive move, that will no doubt receive industry opposition, it’s is also wise one. As my mother would say, “an ounce of prevention is worth a pound of cure.” Levying charges for debt collector violations — after the fact — is nowhere near as helpful to consumers as preventing the violations from occurring in the first place.

Today, ten states do not regulate debt collectors, with regulations in the other 40 states varying greatly. This has created a “patch-work quilt” where consumers are treated differently based solely on their state borders. This action by the CFPB is the first, sorely needed, step in providing a uniform set of rules.

With this quick and bold action Richard Cordray is proving he’s up to the CFPB Directorship. (And I suspect, somewhere in Massachusetts, Elizabeth Warren must be smiling too.)

Bill

Hi, I'm Bill Bartmann and I am on a mission to reform the debt collection industry in America. Please join with me as we bring a petition to Washington D.C., and make Congress close all the legal loopholes in debt collection practices. It's time to stop these debt collection abuses and stop these criminals. Join with me! Sign the petition today! http://stopthesecriminals.com/petition

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Filed Under: Credit, Debt Collection, Government

OK Senator Stanislawski Speaks Out on the Need to Pass The Bartmann Bill

February 16, 2012 By Leave a Comment

State Senator Gary Stanislawski, the force behind introducing The Bartmann Bill for Ethical Debt Collection, shares his thought on the legislation, it’s status and the current likelihood of passage in this video interview with The AARP:

 

Bill

Hi, I'm Bill Bartmann and I am on a mission to reform the debt collection industry in America. Please join with me as we bring a petition to Washington D.C., and make Congress close all the legal loopholes in debt collection practices. It's time to stop these debt collection abuses and stop these criminals. Join with me! Sign the petition today! http://stopthesecriminals.com/petition

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Filed Under: Bartmann, Debt Collection, Government

Momentum Grows as AARP Throws Weight Behind Bartmann Debt Collection Bill

February 15, 2012 By Leave a Comment

I am incredibly heartened and touched by the vocal support my bill has received by one of the largest and most influential organizations in the U.S., the American Association of Retired Persons (AARP).

Here’s an excerpt of an email the AARP has just sent to their members in Oklahoma:

AARP Applauds Committee Approval of Debt Collection Bill; Urges Senate to Pass Measure that Would Require Collection Agencies to be Licensed

AARP Oklahoma today asked state senators to support a bill it says would allow the State Department of Consumer Credit to oversee the debt collection industry and levy penalties for violations.

Senate Bill 1430 by Senator Gary Stanislawski, R-Tulsa, was today approved by the Senate Judiciary Committee and now advances for consideration by the full Senate. The proposal, which is known as the Bartmann Bill for Ethical Debt Collection, would require every collection agency in Oklahoma to be licensed by the state, said AARP State President Marjorie Lyons.

“The Bartmann Bill for Ethical Debt Collection provides important consumer protection for Oklahomans,” Lyons said. “We applaud the Judiciary Committee for passing this bill and now urge the full Senate to approve the measure and send it to the House.”

In addition, SB 1430 would also ban debt collectors from using obscene language or continuing to contact a debtor after the time limit for filing a lawsuit has expired. In Oklahoma, that means three years after a consumer defaults on credit card debt or five years after defaulting on a written contract. The legislation also requires connection agencies to be sure they have located the correct person before taking legal action.

“This bill goes a long way toward protecting individuals, especially the elderly, from unethical debt collectors,” said Stanislawski. “Seniors should never feel intimidated by debt collectors and I want to make sure they know that abusive practices in debt collection will stop in Oklahoma if this bill becomes law.

AARP urged its members to contact State Senators at 1-800-865-6490 and ask them to support SB 1430.

Thank you AARP! 

 

Join us in our fight against unethical debt collection practices by signing out petition!

Bill

Hi, I'm Bill Bartmann and I am on a mission to reform the debt collection industry in America. Please join with me as we bring a petition to Washington D.C., and make Congress close all the legal loopholes in debt collection practices. It's time to stop these debt collection abuses and stop these criminals. Join with me! Sign the petition today! http://stopthesecriminals.com/petition

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Filed Under: Bartmann, Debt Collection, Government

Bartmann Bill Clears Committee – Heads to Senate Floor

February 14, 2012 By Leave a Comment

Bartmann Bill Passes SenateThe Bartmann Bill for Ethical Debt Collection (Oklahoma Senate Bill 1430) took a step closer to becoming law by clearing the senate judiciary committee today.

The bill, introduced by Senator Gary Stanislawski, will make Oklahoma the leading state in the country in protecting their citizens against debt collector abuse.

More importantly it was written to serve as a legislative template for other states and Congress to replicate.

A journey of a thousand miles begins with one step. Looks like we’re moving on to step 2!

Join us by signing our petition today!

Bill

Hi, I'm Bill Bartmann and I am on a mission to reform the debt collection industry in America. Please join with me as we bring a petition to Washington D.C., and make Congress close all the legal loopholes in debt collection practices. It's time to stop these debt collection abuses and stop these criminals. Join with me! Sign the petition today! http://stopthesecriminals.com/petition

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Filed Under: Bartmann, Debt Collection, Government

Is the $26B Foreclosure Fiasco Foreshadowing?

February 9, 2012 By Leave a Comment

banks and state settle home foreclosure disputeToday, news outlets are reporting that roughly 42 states have agreed to an arrangement for banks to pay a purported $26 billion to settle alleged misdeeds such as  improper foreclosures based on “robosigning” and property seizures made without proper paperwork.

In return, banks would get immunity from future state servicing and originating claims. One can only imagine the liability penalties at stake to be able to get this kind of massive settlement agreed to.

Key players like Iowa’s Attorney General Tom Miller, HUD Secretary Shaun Donovan and Wells Fargo’s Mike Heid should be commended for finding consensus and getting this done. Consumers were really hurt by this debacle and what they’ve crafted is not some kind of meaningless, window dressing solution. $26B will provide real help to real people

It also doesn’t take a genius to see the same dynamics at play with banks debt collection practices. Tens of thousands of “robosigning” and other violations of the Fair Debt Collection Practices Act (FDCPA) have already been reported. Who knows what lurks unreported, beneath the surface? And, when you consider Attorney Generals are now pursuing banks for violations incurred by the debt collectors they have sold their delinquent debt to….talk about opening the proverbial Pandora’s box.

Once this foreclosure deal is put to rest, unfortunately for banks, it might be “back to the future” all over again.

Bill

Hi, I'm Bill Bartmann and I am on a mission to reform the debt collection industry in America. Please join with me as we bring a petition to Washington D.C., and make Congress close all the legal loopholes in debt collection practices. It's time to stop these debt collection abuses and stop these criminals. Join with me! Sign the petition today! http://stopthesecriminals.com/petition

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Filed Under: Bartmann, Debt Collection, Government

Twist of Fate — Collector Who Must Pay

February 7, 2012 By Leave a Comment
Lawrence Wasden fights abusive debt collection

AG Lawrence Wasden

 

I love the poetic irony of this one. 

Idaho Attorney General, Lawrence Wasden, has gotten a debt collector, NCO Financial Systems, to pay up (yes, pay, not collect)  for deceptive practices such as misleading borrowers into paying excess interest and paying on debts they didn’t owe.

AG Wasden’s settlement with NCO includes a $50,000 set aside for affected consumers and an additional $26k to reimburse Idaho taxpayers for his departments legal expenses in the investigation.

I tip my hat to Mr. Wasden on this achievement and just hope Idaho residents don’t need to call NCO every 45 minutes to get them to pay up.

Join the fight against abusive debt collection practices by signing our petition today.

 

Bill

Hi, I'm Bill Bartmann and I am on a mission to reform the debt collection industry in America. Please join with me as we bring a petition to Washington D.C., and make Congress close all the legal loopholes in debt collection practices. It's time to stop these debt collection abuses and stop these criminals. Join with me! Sign the petition today! http://stopthesecriminals.com/petition

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Filed Under: Debt Collection, Government

Shoddy Record Keeping & 3rd Party Collectors Expose Big Banks to Mortgage-esque Liability Mess

February 6, 2012 By Leave a Comment

poor record keeping debt collectionMichelle Weiner, a supervisory attorney at the Legal Assistance Foundation of Metropolitan Chicago says she’s taken on nearly 100 consumer debt cases and lost only one.

Law STUDENTS at the University of Maryland’s consumer protection clinic claim a nearly undefeated record defending debt collection suits.

Why are banks and debt collectors losing so much in court these days?

Two words: Record Keeping.

Because of well documented “robo” signing abuses, courts in many jurisdictions are no longer accepting 3rd party collectors own business records as evidence.

Ms. Weinberg was quoted in American Banker saying “Debt buyers know they cannot prove [their claims] if there’s someone making proper legal objections on the other side.”

This is because the attorney filing an affidavit doesn’t have personal, first hand knowledge of the records. When challenged on this point in court, the debt buyer/collector usually won’t be able to prove they have personal knowledge, resulting in a dismissed suit. What creditors continue to bank on is that defendants rarely show up in court, resulting in default judgements in their favor in most cases.

An even more troubling sign on the horizon for banks is that they could be forced to defend themselves against charges that they knowingly sold poorly documented accounts to 3rd party collection firms and, as a result, are responsible for these collection firms worst abuses.

If banks don’t get their record keeping in order, the prices debt buyers pay them to acquire their delinquent debt will plummet. And, if they are open to a bottomless pit of civil and criminal penalties from the frequently fraudulent and abusive collection activities of the firms they sold their debt to, the combination will put a number of banks under, while severely weakening many others.

As the U.S. faces the recession that won’t end, weakening the banking sector is the last thing we need.

Bill

Hi, I'm Bill Bartmann and I am on a mission to reform the debt collection industry in America. Please join with me as we bring a petition to Washington D.C., and make Congress close all the legal loopholes in debt collection practices. It's time to stop these debt collection abuses and stop these criminals. Join with me! Sign the petition today! http://stopthesecriminals.com/petition

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Filed Under: Bartmann, Debt Collection

Attorneys General Should Do Their Jobs AGGRESSIVELY

February 1, 2012 By Leave a Comment
Pam Bondi Florida Attorney General

Florida Attorney General, Pam Bondi

An Attorney General’s job is to protect citizens by enforcing the laws of the land. This SHOULD mean not just being passive and dealing with cases that arise in the normal course of business, but to PROACTIVELY investigate conduct that may not be visible to the naked eye.

The poster child for AG pro-activity should be Florida’s State Attorney General Pam Bondi. (@myfloridalegal)

After learning of a $2.5M settlement between Michigan and debt purchaser & collection firm, Asset Acceptance Capital Corporation, AG Bondi has begun investigating whether they violated Florida’s Unfair Trade Practices Act. Leopards don’t change their spots and I wouldn’t be surprised that Ms. Bondi finds the same illegal practices in Florida that Asset Acceptance used in Michigan.

Cleaning up the mess that is today’s debt collection industry can only occur when the financial cost of unethical and illegal collection activities is greater than the cost of proper conduct. Making this happen requires our nations Attorney General’s to not just be vigilant, but to be aggressive. They don’t need to reinvent the wheel, just follow Ms. Bondi’s lead….

Bill

Hi, I'm Bill Bartmann and I am on a mission to reform the debt collection industry in America. Please join with me as we bring a petition to Washington D.C., and make Congress close all the legal loopholes in debt collection practices. It's time to stop these debt collection abuses and stop these criminals. Join with me! Sign the petition today! http://stopthesecriminals.com/petition

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Filed Under: Debt, Debt Collection, Government
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