Boise, Idaho, USA – Jeffery Hartman is one of the top financial industry’s leading Strategy Consultants. He is renowned for providing unbiased and innovative advice to his clients. In the light of recent COVID-19 outbreak, he has presented his views in an article in FORBES, titled Should The Debt Collections Industry Stop All Collections In Times Of Crisis?
The closure of businesses throughout the country has caused a huge number of people to lose their jobs. The Federal Reserve estimates that unemployment levels in the country could reach a whopping 32%. Now is the time for debt collecting industries to decide whether they should opt-out for aggressive collection methods.
Morally speaking, in these tough times, forcing a debtor to pay off his debt along with sustaining his family without a source of income is outrageous. Mr. Hartman is trying to convince the relevant agencies to Stop Harassing Debtors and Rethink of Alternative Methods in a Pandemic.
He further argues that employing aggressive collection methods will not only present moral dilemmas but will also be much costly to the Debt Collection Industries. In other words, the resources invested in collecting the debts will be far greater than the collections. According to him, a smart choice in this scenario for such agencies would be to appreciate the concept of the time value of money and accept whatever returns people are voluntarily making because, in the long run, they would be collecting more or less the same amount but with unnecessary efforts wasted too. His main point is too urgent the industry to rethink Debt Collections in the Cov19 pandemic.
Mr. Jeffery is of the view that aggressive collection methods, whenever used, have brought about legal actions in history. For example, the Fair Debt Collection Practices Act, or FDCPA, was birthed in the late 1970s in response to heavy-handed tactics used by collection agencies. The Consumer Financial Protection Bureau was also born in 2011 out of similar circumstances. He advises that it would be a better choice for such agencies to stay calm.
He presents a workable solution to Collection groups saying that “Organizations should also utilize less invasive options such as omnichannel for communications and work with the debtors and provided settlement discounts on previous payors. Having easy access to mobile and online payment options via smartphone and PC should be standard procedures for collection businesses. When customers can easily make payments, they are more inclined to do so, in my experience.”
All in all, Jeffery Hartman has tried to present a case from the US Consumer’s point of view who is struggling to stay sane and barely survive this horrible pandemic. He is urging Debt Collection Agencies to Stop traditional collection tactics in these difficult times.