Letter to the Editor
posted on 2009-01-21
I hate to shock your readership, but the collection program you highlighted in your recent article, "Slow Economy Sparks New Concept with Collection Agency" is anything but a new concept. In reality, agencies around the country, and probably the world, have been charging flat rate contingency fees for as long as I can remember - and I've been in this business for over twenty-five years.
Moreover, the implication of the article (or better yet, advertisement) implies a less-than-honest approach by other agencies to "sandbag" the accounts until they reach some magic point at which a higher fee is triggered. Truth is, sliding fee schedules based on age - which are quite appropriate - are entered into in a mutually-agreed to arrangement between an agency and its client. And that age is determined when the account is placed for collections, not as it ages in the agency files. Seriously - what creditor with any modicum of business acumen at all would fall for such an arrangement? As president of ACA International, The Association of Credit and Collection Professionals, I strongly resent the implication that ACA member agencies would stoop to such a deceptive practice. I suggest that some sort of clarification be made regarding this advertisement that your publication chose for whatever reason to portray as a news item.
Jay Gonsalves, President, ACA International