Regulators’ reminders for consumers managing their debt show importance of the industry and how debt collectors can help.
4/27/2020 9:00
Federal regulators for the accounts receivable management industry recently issued guidance to consumers about communication with debt collectors that serve as reminder of the vital role can play in helping consumers manage their finances—especially in times of crisis.
Debt collectors within ACA International’s membership are here to help while also navigating temporary guidance for working with consumers and business operations related to the coronavirus, COVID-19.
One of the most important steps to take is to talk with a debt collector when they call.
In a blog post on the Federal Trade Commission’s website, Seena Gressin, attorney with the FTC’s Division of Consumer & Business Education, writes,
“Consider talking with the collector at least once, even if you can’t pay right away or don’t think you owe the money. That way, you can confirm whether it’s really your debt. If it is, you may be able to work out a payment plan or settlement.”
ACA members remain committed to assisting consumers.
“This commitment has been further demonstrated through industry-wide calls to action for compassion and empathy since the start of the COVID-19 pandemic,” CEO Mark Neeb said in an advocacy letter to U.S. Department of the Treasury Secretary Steven Mnuchin. “ACA members have training and hardship programs in place to help consumers make arrangements that best suit their unique financial situation, including implementing temporary suspension of collections for consumers directly impacted by the coronavirus."
ACA members are also complying with state guidance on garnishments and are not targeting stimulus funds, despite rhetoric being pushed by certain advocacy groups.
ACA members are working with consumers to help them understand their options and figure out a plan that best suits their individual situation.
ACA members are currently receiving an unprecedented number of inbound calls because consumers want and need to resolve their legally owed debt to maintain their financial health.
The Consumer Financial Protection Bureau also recently issued financial planning resources on its website to remind consumers of several options to manage their debt and work with collectors.
“It is important to understand that debt can represent a very real barrier to achieving goals and can be hard to face. But there are tools you can use to help you take control of your debt. Even small steps toward paying down debt can make a big difference in making it feel more manageable,” writes content specialist Erin Scheithe.
These regulatory messages show the value of the accounts receivable management industry and understanding of the role of consumers, agencies, and regulators to work together, which is just one of the goals of ACA as we advocate for the industry and its importance to our credit-based economy.
Additional on state, federal and education resources related to COVID-19 may be found here.
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.