Marked by Character: A Look at Credit Cards from a Debt Collector's Perspective

Mark Mathia

The character of an industry is defined by its contribution to the industry. Not merely profits, but a contribution that endures beyond business.

This kind of effort merits recognition.

It’s worthwhile to get an exclusive look at the credit card industry from a debt collector’s perspective.

Every industry has a benchmark segment that sets the standard for the rest. The debt collection industry has the various banks and credit card lenders to thank for its current systems and advanced technologies. While recent economic conditions have tightened credit worthiness standards, this circumstance does not suggest that credit card issuers have lowered their standard of doing business with collection agencies.

These high expectations continue to be enacted and mutually beneficial to those serving the industry in the recovery of past due accounts.

In recent weeks, my company had an opportunity to complete the RFP process and the associated corporate security checks for a nationwide credit card issuer. While we consider ourselves advanced in terms of data processing and security, we were able to harness insights from the audit process to strengthen our service offerings. The benefits of partnering within the credit card industry are numerous and recommendations made during these security checks add value very specific to the needs of the industry.

This is the practical benefit most never hear about when it comes to discussing the credit card industry.

The economic recession may have clouded public opinion about the industry, but the fact remains that the credit card industry has forever influenced the collections industry in positive ways. Simply put, the collection industry is better equipped to do the job professionally, ethically, and technically, having served them.

For years, the credit card industry has paved the way for innovative lending practices. Starting at the acquisition process on through to the collection of past due accounts this industry has pioneered efforts in communications, skip-tracing and information security. Thanks to the innovative efforts of the card industry, agencies have been able to take advantage of powerful ideas and technologies.

Take for instance the offerings that have spawned from industry leader First Data Resources, one of the nation’s largest Credit Card processors also known for its advancement of the skip tracing technology that many agencies utilize today. First Data Solutions continues to pioneer the way collectors secure location information quickly, accurately and effectively.

Because of the growing volumes of bad debt, it became essential for automated dialing systems to expand their capacity. This led to call center advancements and increased competition within the industry. Federal and state regulations also offered challenges for organizations to overcome, so that they could get increased connects without wrong party contacts. Who is behind this advancement? Again, the credit card industry and its desire to assist in the collection process.

Finally, when it comes to information technology no one compares to the level of scrutiny that the credit card industry requires. Data security is one of the most critical elements in launching a business to business relationship with any size of credit card lender today.

Personal experience has shown that not only have we grown as a result of having business relationships with credit card issuers but that many advances in collection technology can be directly traced back to this industry.

Mark L. Mathia is the Co-Founder and CEO of Tiburon Financial, LLC. Mark earned his undergraduate degree in Business Communications from Dana College and his Masters of Business Administration degree from Bellevue University. His tenacity and willingness to establish a leadership-driven organization has earned Tiburon Financial the respect and admiration from other industry leaders across the nation. Mark has more than 23 years experience in the debt collections industry and has been actively involved with ACA International the Association of Credit and Collection Professionals.