Ask the Experts: What Can Agencies do to Improve Media Coverage?

Ask the Experts is an interactive section where readers can  ask direct questions to the experts at Kaulkin Ginsberg, the leading strategic advisors to the ARM industry – and a sister company of insideARM.com — as well as other seasoned industry executives.

Thank you to one of our readers for our latest question:

Question: What actions can collection agencies take to combat the recent negativity they are receiving from the media?

Answer: (from Mike Ginsberg, President & CEO of Kaulkin Ginsberg)

Negative press about collection agencies is not going to go away — especially in a down economy.  Here are 5 things that can be done to combat the negativity portrayed by the media.

   1. Be responsive to the press. When they call, try to respond as quickly as possible, as they are often rushed by their editors to hit a deadline so they can go to print.  Most journalists have not been tracking the industry and therefore they lack a fundamental understanding of the issues they are covering.  When a reporter reaches out, it becomes an opportunity for you to become an advocate for the industry. We need to correct any inaccuracies and challenge any misperceptions right away. Don’t assume someone else will do this. Get involved.  Of course, keep in mind that when you do talk to a reporter, whatever you say is “on the record” and may be quoted.  Be mindful of how your statements will look in print.

   2. Adopt a zero tolerance policy toward violations and stick to it. Bad press is a reflection of persistent misconceptions about the industry.  Don’t contribute to the stereotype. Agency executives must clearly define the rules with their entire staff and fully enforce them without exception.  Be consistent with enforcement when collectors break these rules — even with your top collectors.  Make sure that collectors and managers are consistently respectful toward to the consumer (Did you notice I did not say debtor?).  All violators must be reprimanded immediately and with severe action.  Credit grantors must stop rewarding violators with new placements.  Complaints should be addressed immediately. Complaints should be evaluated immediately and those with merit should be addressed with severe penalties such as loss of business or fines.

   3. Train and retrain. Regardless of the size of your collection operation, invest in training your collectors thoroughly before they interact with consumers and provide complete supervision when they make their way onto the collection floor for the first time.  Retrain to keep them fully informed on proper collection techniques.  Be sure to train your collection management also, and don’t simply assume your best collectors make the best collection managers.  Many don’t.  

   4. Support your local community. You are fighting negative perceptions each and every day.  This will not go away, but one of the best long-term approaches you can take is to become a bigger part of your community by participating in local charitable and neighborhood efforts.  Encourage your staff to get involved. Coach a team.  Sponsor one.  And don’t just focus on where you’re headquartered.  Many problems take place at remote call centers.  Build on your community awareness at a very local level in each of your call centers.  

   5. Support your association’s efforts. The industry’s leading associations must consistently and routinely regulate their members to prevent those who break the rules from maintaining their memberships or certifications.  Zero tolerance at the association level is essential and public reprimand will make executives think twice about breaking the rules.  It may cause some minor losses in membership dues but it will benefit the rest of the members and the industry at large.