Dear ARM Industry Colleagues, As we approach the upcoming elections for the Debt Buyers Association (DBA) board, I am sharing my thoughts on how to improve the organization, particularly for small debt buyers.
One of my major suggestions is to revamp membership levels based on debt purchasing and asset classes, rather than company size or collections. Active buyers play a crucial role in the debt sales market, and their input and representation should be proportionate to their involvement. Currently, many board members are both buyers and third-party collection agencies, which can sometimes divert attention away from the needs and interests of debt buyers.
Switching to a certification-based membership standard could be detrimental to the DBA, and I propose a compromise that takes into account both certification and debt purchasing. The DBA is for Debt Buyers, and it's crucial to maintain the focus on their needs and concerns.
Another important change I propose is to discontinue individual certification and only certify debt buying companies. Individual certifications can expose individuals to liability and be costly. Companies, as a whole, should bear the responsibility and liability. Additionally, individual certifications tend to focus more on collections than debt buying.
The standards for debt buyers should primarily focus on information security and quantifiable data, rather than collections practices. Other organizations are better equipped to provide training on collections, whereas small debt buyers may not have internal collections departments and may rely solely on purchasing and placing debt.
Finally, I suggest raising the membership fee to fund certification training and make it more accessible through web-based training. The training should be geared towards information security and general collections guidelines.
The recent changes in the industry have come from genuine concerns in the collections market, and I support certification to some extent. However, it's crucial that the DBA remains focused on the needs of debt buyers, separate from debt collectors, and mindful of the impact of their decisions on small debt buyers.
Final Thoughts: : I hope this gives you a glimpse into my thoughts on how to improve the DBA for small debt buyers and other smaller companies in our industry. If you want to read more about my ideas. If you have any further suggestions on how to improve the DBA, I would love to hear from you.