In a recent article published on accountsrecovery.net, it was reported that many state attorneys general are showing positive support for the Debt Buyers Association (DBA) certification process. While both government entities and the industry as a whole have a favorable view of the certification process, small businesses may be unable to participate in the debt buying market due to the high cost associated with obtaining DBA certification.
The certification and oversight requirements set forth by the DBA are both expensive and time-consuming, making it difficult for smaller debt buyers to meet the necessary criteria. Despite meeting the standards established by the DBA, these businesses may not have the resources to obtain the DBA-approved label due to the additional burden of obtaining certification. Small businesses already face significant costs in starting up their operations, such as equipment, personnel, licensing, and bonding, and the additional expense of certification only adds to the challenge.
The current certification process favors large corporations that have direct relationships with debt originators, but it limits the potential of the outstanding debt recovery market by limiting the number of smaller debt buyers that are able to participate. The absence of state-specific buyers and multiple trades of portfolios have only exacerbated the problem in the debt buying market.
To promote a more inclusive and productive debt buying market, the DBA should consider making the certification process more accessible and affordable for good businesses. This could be achieved by offering a more affordable path to certification and providing an online library of courses on debt buying, ethics, and due diligence. The DBA should also consider its role in contributing to the current challenges faced by the debt buying industry and take steps to improve its reputation and support the businesses it claims to represent.
In conclusion, the DBA certification process presents both benefits and challenges for debt buyers. While it may improve the reputation and productivity of certified businesses, the high cost associated with certification may limit the ability of smaller debt buyers to compete in the market. If you are considering becoming a debt buyer or need guidance on navigating the certification process, seek the assistance of professionals who can help you determine the best options for your business. With the increasing support from state attorneys general, it is crucial for debt buyers to prepare themselves for these new standards.