The debt collection industry is a lot like George Castanza.

Fans of Seinfeld will no doubt remember when George, in a state of despair, lamented to Jerry that every decision he has ever made has been wrong and his life is the exact opposite of what he wanted it be. To try and help, Jerry implored that “if every instinct you have is wrong, then the opposite would have to be right.” This flash of insight set George on a path behaving completely opposite to his natural instincts:

• He introduced himself to a gorgeous woman by saying “My name is George. I’m unemployed and I live with my parents.” (She agreed to date him.)
• On the date he stopped shaving, stood up to hooligans disrupting the movie and refused to come up to the girls apartment when invited. (Landed him an interview with his favorite team, the New York Yankees.)
• During the interview he tells team owner George Steinbrenner that he’s not pleased to meet him, because “you’ve reduced my beloved Yankees to a laughing stock to serve your massive ego.” (Steinbrenner hires him on the spot.)

By acting completely against his instincts, George winds up with everything he wants. After a couple decades in the collection business I’ve come to believe that most debt collector’s natural instincts are about as on target as George Costanza’s.

Much of what they do in the name of “collecting debts” is counterproductive, with some bordering on the insanely self-destructive. If you went to kindergarten you learned the lesson of “you catch a lot more bees with honey than vinegar.” Apparently most of today’s debt collectors missed school that day, because their tactics seem to be designed to turn their customers into their mortal enemies – in record time.  How else can you explain their “bread and butter” business tactics:

• Swearing
• Screaming
• Harassment & Intimidation
• Incessant Non-Stop Calling (Collectors shouldn’t be able to have re-dial buttons)
• Contacting the debtors friends, family, employer and neighbors
• Embarrassing them on Facebook

Even Kramer (the author of a coffee table book about coffee tables) would see this is a nonsensical approach.

Legislating Manners & Good Judgement

The typical counter argument against business legislation is that companies today need less government, not more. Opponents argue that business legislation imposes new burdens on corporations, hurting their profits and hamstringing their ability to create new jobs.

But what if we actually lived in a Costanza world, where down is up, and up is down?

If debt collectors were required to regulate themselves by “doing the opposite,” here’s what their legislation might look like:

• No yelling or swearing
• Treat all with kindness, dignity, respect and good manners
• No dressing up as law enforcement
• No threatening jail time
• No lawsuits whatsoever, under any circumstances
• No lies, misrepresentations or pretending to be an attorney
• No more than one call attempt per day
• No contacting anyone accept the person who owes the debt
• No threats to dig up dead relatives until they pay

Voila! Thank you Senator Costanza, what brilliant legislation!

Here’s the real life irony, debt collectors like Baltimore, Maryland’s Access Receivables, that employ a “nice guy” strategy, collect nearly 40% more than those using fear based collection methods. This legislation would save debt collectors from themselves.

And, debt collectors won’t know what hit them.

Their staff will enjoy their jobs more. Their collection calls will get answered and messages even returned. They’ll stop getting bashed in the media. The CFPB, FTC and attorney generals will stop breathing down their necks. And, they’ll wind up making lots MORE money.

Sure, it’ll be awkward at first, but like George’s new and improved life I think they’ll find a way to get used to it.

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

More Posts - Website