ACA recently talked with Kirstin DeMaio from Paramount Collection Service about the company’s story and operations as a small agency in western Michigan.
1/19/2021 8:00
By Betsy Clarke
As a newcomer to the accounts receivable management (ARM) industry, I imagined collection agencies typically keep a low profile. I was intrigued during a recent trip when I spotted the Paramount Collection Service office with its well-lit marquee sign sitting proudly on the main street of small-town North Muskegon, Michigan. I called the agency to say hello from ACA International and was greeted by Operations Manager Kirstin DeMaio. Standing outside the building with masks on in the crisp December sunshine, Kirstin and I had a great conversation about the work of smaller collection agencies.
The story of Paramount Collection Service exemplifies the knowledge and experience that members bring to ACA. Founded almost 80 years ago in 1933 by DeMaio’s grandfather, Hans Homfeld, the agency began operations at the bottom of the Great Depression serving local businesses. Homfeld established the philosophy that still drives the agency today – “a firm but friendly approach.”
Homfeld operated the agency successfully for many years with his son Bill Homfeld who went directly into the business from high school, and eventually took over. When Bill died unexpectedly in 1982, his brother Bob, who had been a revenue officer for the IRS after attending college, and Bob’s wife Darlene, stepped in to keep the business running. DeMaio, their daughter, first began working at the agency part-time around 1982 while she was attending community college.
“When I started working at the agency, my job was filing the card files. Anyone that remembers the card files will know how labor intensive it was to write all of the notes on a card,” she said. “Starting at the bottom I learned the whole business, but my Dad felt it was important for me to attend college, so I began working on my business and marketing degree while working at the agency. After graduation, I took on the project of researching and interviewing computer software companies to upgrade our card file system to a cardless, computerized collection system. When we upgraded to this platform, it completely transformed our business. At the same time, this change was happening throughout the whole industry.”
After graduating from Western Michigan University, DeMaio continued working at the family business, and she took on an increased role when her father died in 2002. Her mom continued running the agency until the COVID-19 pandemic hit.
Here is an excerpt from my interview with DeMaio:
Q. How has ACA been helpful to the agency?
A. “I think the new mobile app is very helpful and well done. Every morning I check The Hub to see what is going on. I feel that ACA has done a lot for my company as well as the entire industry. They are very informative, relaying information to members through all the resources on the website and providing guidance through webinars.”
Q. Has ACA supported your agency during the many changes happening in 2020?
A. “I read the Daily Decision first thing every morning to watch industry trends. It is great for members looking for guidance, for example regarding the new FDCPA rules. I am closely following the guidance related to the limited content message and am looking into establishing a DBA name for the agency so that once the new rules go into effect at the end of 2021, we can use a LCM when contacting consumers.”
Q. What strengths do smaller agencies like Paramount bring to ACA and the ARM industry?
A. “We are known in our community for our good reputation, and we know our clientele. Because we are located within the business community that we serve, we can see the economic trends that are happening locally. All that information helps us be more effective in the percentage of funds we recover for the businesses we serve.”
Q. Are there issues that are especially difficult for smaller or local agencies?
A. “As a small agency, it is challenging to keep up with all the compliance requirements. That is where ACA is a big help. As the immediate past president of the Michigan Association of Collection Agencies, I have seen quite a bit of consolidation within the industry over the past 10 years. There will continue to be an important place in the industry for smaller agencies, but with all the regulatory and economic changes going on these entities really benefit from the guidance provided by ACA. When Ted Smith (ACA’s vice president and chief operations officer) came to our state collections convention last year, I was so impressed with his dedication to this industry.”
My conversation with Kirstin DeMaio demonstrates the value of the partnership between ACA and its member agencies. Using the education, advocacy, and product resources provided by ACA, both small and large agencies can operate successfully and maintain their operations at the front of industry standards. Does your agency have a story to share with members? Large or small, new or old, we would love to hear from you. Contact us at: [email protected].
Betsy Clarke is a compliance analyst with ACA International.
Pictured above: Kirstin DeMaio holds a picture of her grandfather, Hans Homfeld, receiving an award from ACA International.