The New Debt Collection Industry Paradigm

When we started this blog, I promised a blend of opinion, humor, news, and "bric a brac" related to the debt collection industry.

Today, I'd like to spend a brief moment reflecting on the nature of the debt collection industry.

There is a glass half empty and a glass half full perspective, but whatever side of that fence you sit on, there is no denying, the collection industry is under a massive change in terms of regulation.

We look at the  huge change in legislation in our industry a few different ways.

1.  Abusive Debt Collection Promises, are an abomination and an embarrassment to the legitimate debt collection industry.  For the good of the industry, these "goons" have to be stopped.  Therefore, the massive volume of debt collection legislation we are facing, is good.

2.  Pendulums Swing.  We believe that the volume of massive changes in regulation have caused the pendulum to swing so extremely in favor of debtors, that legitimate debt collection businesses are being forced out of business, like Dolphins caught in a Tuna Fishing net.

3.  People have a moral obligation to Pay Their Debt.  The extension of credit by small and medium sized businesses is one of the backbones of building our economy.  It strikes us that there is much more attention put on protecting those who have borrowed without an ability to pay back, and far too little emphasis put on protecting those small businesses that can't pay their own bills, because someone can so easily get out of paying.

4.  It is too easy to get out of paying a debt, and the penalty for small to mid sized businesses for collecting on a debt 'improperly" are too stringent.  Let's say I'm a small business owner, maybe a contractor that grinds and polishes cement floors.   And I do a job for a few thousand dollars, where the client decides not to pay.   One miss-step in how I communicate with that customer, and all the sudden, I can find myself in court, facing not only  not getting paid, but possibly, maybe probably facing punitive fines.  Is that right?  I did the work and just want to be paid for it, and now as the provider of credit.. I'm forced to court for trying to collect the debt?

5.  Now, more than ever, the debt collection industry needs fresh new ideas.  Now, more than ever, small to mid sized businesses need to partner with a debt collection agency.  Now more than ever, debt collection agencies need a solid footing in law.. not just collections practice.  Now more than ever, debt collection agencies need an understanding of human psychology, and rely on persuasion, not duress to collect debts on their clients behalf.   Now more than ever, the debt collection industry is poised for a rebirth into a more vibrant industry as the old guard falls away.

This massive swing in debtors protection, will give birth to a new and more dynamic debt collection industry.  The skill and mastery of a debt collector in the coming months and years will be invaluable in making sure that the business owner gets paid, and not only gets paid, but stays out of legal trouble trying to collect on past due debts on their own.  The debt collection agency of tomorrow will have people with backgrounds in law, and psychology.  This industry will become a more efficient engine, working smarter to protect the rights that seem to have been left behind, the rights of the business person that extended credit in good faith, and is now struggling to get paid.

Of course, it is those fundamental beliefs that spawned Collectivity, LLC.   I am an attorney, licensed to practice in Florida.  I have a background in psychology, and I've been working with creditor and debtors to resolve collection issues for more years that I perhaps care to admit to.   It is my firm belief in the need for an agency to not only collect, but to protect the creditor from their own collections efforts that drives me to create this new agency, Collectivity LLC.  It is my firm belief that people should pay what they owe, and people that have difficulty doing so, should be treated firmly, but with respect.

We look forward to working with you and your debt collection needs.  We are a national collections agency, and focus the majority of our efforts here in our home state of Florida.


Thanks for letting me bend your ear.  Have a great week.


Mark.