Advocating for the industry, ACA continues to weigh in with Congress as new legislation is rolled out. Editor’s note: This article is available for members only.
5/15/2020 8:00
As the next round of stimulus legislation negotiations begin, ACA International continues to lead efforts on Capitol Hill to defend the accounts receivable management (ARM) industry.
“I think it is important to point out that these bills are making some false assumptions about the work of the collections industry during the crisis,” Leah Dempsey, ACA’s vice president and senior counsel, federal advocacy, said in response to the proposals. “The broad restrictions and increased penalties added in these bills do not align with what we are currently seeing in the marketplace.”
ACA is working to remind Congress that consumers are looking to the ARM industry for help during the crisis and have taken actions such as deploying hardship programs to aid those facing financial difficulties. In fact, ACA members are reporting an unprecedented number of inbound calls. Consumers are seeking to communicate with ACA members so that they can control their own financial health.
Notably, a federal judge, Richard G. Stearns of the U.S. District Court for the District of Massachusetts, recently found many of the same concepts in the Health and Economic Recovery Omnibus Emergency Solutions (HEROES) Act to be problematic. This is evident in the memorandum opinion and order granting ACA’s motion for a temporary restraining order (TRO) in ACA’s civil action challenging Massachusetts Attorney General Maura T. Healey’s emergency regulation, 940 CMR 35.00 , (the “Regulation”), which halted almost all debt collection activities in the state, including agencies’ unsolicited calls to consumer debtors. The Regulation had been in effect since March 26, 2020.
For example, Stearns observed in his opinion that, “Given the plethora of protection provided to debtors by the laws and regulations the court has previously cited, the interest a debtor may have in the Regulation may not weigh as heavily as the threat of extinction faced by smaller collection agencies who have been effectively put out of business. Of perhaps greater concern is the impact the Regulation may have on hospitals and utilities who depend on collection agencies to remain solvent. Finally, the court recognizes the argument advanced by ACA that a capitalist society has a vested interest in the efficient functioning of the credit market which depends in no small degree on the ability to collect debts.”
ACA is delivering the message to Congress that many businesses throughout the country, financial services providers, and medical providers and hospitals standing on the front lines of the crisis are relying on ACA members. ACA members, for example, have reported that hospitals have asked them to continue to communicate with consumers to explain programs like charity care and other options for assistance.
“We believe many of the House bills introduced in response to the crisis are misguided and will continue to work with Congress to provide data about the marketplace and alternative ideas that would serve both consumers and businesses throughout the country,” Dempsey said.
As a reminder, ACA released a survey for members to help inform advocacy efforts on a package of bills in the U.S. House of Representatives. A summary of the HEROES Act from ACA is available here.
Members may also find more updates on advocacy efforts on ACA’s federal advocacy webpage and are encouraged to register for the Washington Insights Livestream June 3 to hear from regulators, members of Congress, ACA staff, and learn about opportunities to advocate.
For more information on how the ACA Licensing staff can assist with your licensing needs, please contact us at [email protected] or call (952) 926-6547.