Financial literacy and communication between collectors and consumers are closely connected. Here are a few training resources as well as educational materials to share with your employees and consumers.
4/15/2021 11:30
April is Financial Literacy Month, which is a great time for the accounts receivable management (ARM) industry to remind consumers about resources available to help them manage their finances, avoid payment and identity theft scams, and learn new financial education tips.
The April issue of Collector magazine features an article on how poor financial literacy can play out in several ways during interactions between consumers and collectors. In some cases, lack of understanding contributes to a debt remaining unpaid and going to collections.
Collectors are well positioned to serve as an educational resource for consumers, reports ACA Communications Consultant and former editor of Collector magazine Tim Dressen in the article.
During the COVID-19 pandemic, ACA members have experienced an unprecedented number of inbound calls. Consumers are seeking to communicate with ACA members so they can control their own financial health.
Here are a few resources members can access to learn about financial literacy and share with consumers during these calls:
- National Financial Educators Council: This site has complimentary training resources and online learning for financial education.
- Federal Trade Commission: Checking Your Credit: This site has back-to-basics steps on checking credit reports, which consumers are encouraged to do often to track payment arrangements and their credit score.
- Federal Trade Commission: Managing Your Bills During the Pandemic: This site has steps for managing debt and bills, including encouraging consumers to contact creditors and debt collection agencies to work out manageable payment plans and financial assistance programs. The FTC also has tips to avoid payment scams while rebuilding your finances.
- Consumer Financial Protection Bureau Guide to COVID-19 Financial Relief: The site offers information on eligibility for Economic Impact Payments from the American Rescue Plan and claiming payments.
- Consumer Financial Protection Bureau: Unemployment Benefit Scams: This site has information on how consumers can protect themselves from scammers fraudulently filing unemployment claims using personal identity information. The CFPB also has a financial literacy website with resources to help consumers in partnership with other federal agencies that are part of the Financial Literacy and Education Commission.
As a part of the ARM industry, ACA members are directly involved in consumers’ financial decisions. That’s why Financial Literacy Month is an important time for members to learn more about how to support consumer education on topics such as identity theft, scams and incorrect information on credit reports, all while talking to them about resolving debts.
Get involved with Financial Literacy Month to learn or improve how you and your business can help consumers by promoting educational materials and training your staff to assist consumers with important financial topics.