ACA Launches Consumer-Focused Web Site to Help Answer Tough Financial Questions

ACA International today unveils “Ask Dr. Debt,” a new Web site from its ACA International Education Foundation arm that will provide free, confidential information for consumers with debt and credit questions.

ACA, the association for credit and collection professionals, hopes to raise overall consumer awareness of the collection industry and show how agencies can actually help people in financial trouble.

“The financial illiteracy of folks and government is unbelievable,” said Bill Wilcox, chairman of the ACA International Education Foundation. “There are so many different charge and credit plans out there…60 days no interest, two years no interest, adjustable rates…”

The confusing array of debt, credit and investment choices is more than even many experts can handle, Wilcox said. So many consumers, even those with some basic financial skills, took on debt they thought they could live with. But the rapidly deteriorating economy, particularly in the real estate market — eliminating much of the available home equity and other credit — compounded by problems of job and investment losses, resulted in many consumers being in over their heads.

“Some people who never thought they would have a financial problem are in deep trouble today,” Wilcox said.

The financial problems are diverse, as are the solutions, according to Wilcox. “One size doesn’t fit all. Some people look at some financial advice as gospel.”

A family with four school-age children with $50,000 in debt would need to follow a different strategy than an older couple without any children with the same amount of debt, Wilcox noted.

Ask Dr. Debt will specifically answer collection questions (e.g., “what are my rights if…”). Consumers can e-mail questions or try to find the answers themselves through a frequently asked questions section.

The Web site will also offer advice on spending, complete with a budget calculator. The site advises that consumers should limit credit obligations to no more than 20 percent of monthly income. The site also offers savings recommendations and a link to a free online personal finance course.

The site recommends that consumers seeking credit counseling contact the National Foundation for Credit Counseling.

The ACA International Education Foundation has been running a beta test site of Ask Dr. Debt for more than a year. During the first 90 days of the pilot, the site had more than 50,000 hits despite the lack of any promotional effort.

Credit and collection firms can link to the site directly from their sites, though ACA recommends inserting a notice telling the visitor that the link will take him to a non-company site.

Creditors may include information about Ask Doctor Debt on correspondence mail, according to ACA. However, due to legal considerations, debt collectors should not put any information about the site on collection notices or other non-correspondence mail sent to the consumer.

Ask Dr. Debt can be found at www.AskDrDebt.com.