Thanks NYTimes. Now, Let?s Get Down to the Tough Part

Many in the ARM industry have spent the last few days cheering themselves for a generally positive article in the New York Times on Friday that presented a balanced view of collections and collectors.

The headline “Debt Collectors Try to Put on a Friendlier Face,” summed up the piece. Some in the industry are moving away from an antagonistic approach to debtors, shifting instead to an approach where the collection agency works with the borrower, according to the Times.

The story notes that this change is occurring as many agencies find this ‘tough-love’ style often works, and because regulators are threatening the industry due to ever rising complaints about collector behavior.

How can the industry build on this generally fair story? The Times reports that ACA International is going to conduct a national consumer education campaign, and NARCA has hired a lobbyist to better present its views on Capitol Hill.

That’s great. But a better way is to create an aggressive self regulating organization that finds and flushes out the jerks that break the rules and make the entire business look bad. The industry needs to do this to gain credibility with the public and with regulators.

Tough Love can be a smart approach. Maybe its time the industry practices it on itself.