2024- April
IACC Leaders Ready to Advocate for Industry
The proposed Minnesota Debt Fairness Act, under review in the Senate at the time this issue was published, relates to “consumer protection, modifying various provisions governing debt collection, garnishment and consumer finance; providing for debtor protections,” among other thirdparty debt collection topics. But in its early stages, it also included a provision that would have looped in small business debt. The legislation as introduced included language amending the definition of “debt” in a way that would have included small business debt as consumer debt. The original bill language (which has since been removed) stated: Subd. 7a. Debt. “Debt” means any obligation or alleged obligation to pay money arising out of a transaction in which the money, property, insurance, or services that are the subject of the transaction are primarily for personal, family, or household purposes, whether or not the obligation has been reduced to judgment. For purposes of this chapter, the term debt also refers to any obligation or alleged obligation arising from owning and operating a small business, as defined in section 645.445, regardless of the small business’s purpose. Additionally, the legislation proposed to redefine “collection agency” or “licensee” to include attorneys whose principal or exclusive practice involves debt collection.
IACC Advocacy
IACC always monitors legislation that might have a negative impact on its members or on their clients and customers. IACC President Valerie Ingold, managing director of Commercial Collection Corp. of NY, and IACC board member Wanda Borges, attorney at Borges & Associates, LLC, are prepared to advocate on IACC members’ behalf. Ingold said that any time legislators consider blurring the line between commercial and consumer collections, IACC will get involved. “The IACC staff and board are always looking out for our industry’s best interests,” she said. “We have channels to keep in-the-know and work with lobbyists to fight regulations that come up. When necessary, we request that our members call and write letters for our industry. You can rest easy knowing that the IACC has its finger on the pulse and is ready to fight on your behalf.” The Minnesota Debt Fairness Act, as proposed, was alarming to Ingold and Borges. “The original bill presented in Minnesota would have had several negative consequences for IACC members and their clients/customers,” Borges said. “It would have compelled commercial collection agencies to learn about the FDCPA, change their demand letters to comply with the FDCPA, and create new methods for collecting debts from small businesses because the original bill intended to treat small businesses as though they were consumers. Many commercial collection agencies do not handle consumer or retail collections in order to not have to get involved with additional compliance issues.” She added that most of IACC members’ clients are credit grantors that extend credit to small and large businesses. If small businesses were to be treated as consumers, there would be several negative impacts on these trade credit grantors, including:
- Trade creditors would be hesitant to extend credit to small businesses in order to protect themselves from the potential of future debts, which would be difficult to collect;
- Trade creditors would, in fact, have difficulty collecting past-due receivables from small businesses, which would be protected under the FDCPA; and
- Some trade credit grantors are themselves small businesses, and the inability to collect debts could be devastating to them.
While IACC does not engage an independent lobbyist, it actively works with ACA International on its lobbying efforts and has participated in a coalition of trade associations, including with ACA, the Commercial Law League of America and Commercial Collection Agencies of America, to voice opposition to bills that could have a negative impact on IACC members. Fortunately, after meeting with representatives from the Minnesota attorney general’s office, bill sponsors and other proponents of the legislation, and explaining this unnecessary expansion of debt collection regulations would harm businesses and consumers, both the commercial debt and attorney licensing provisions of the legislation were removed. “While there have been many amendments to the Minnesota Debt Fairness Act since those initial changes, and more are expected throughout the legislative process, we were pleased to see these provisions removed from the bill prior to the first hearing in the House Commerce Finance and Policy committee,” said Andrew Madden, ACA International’s vice president of government and state affairs.
Ingold and Borges want legislators to understand that commercial debt is very different from consumer debt and should not be compared to it. Small business owners are entrepreneurs who accept a certain amount of risk when opening a business. Compared to consumers, small businesses have superior bargaining power with their commercial suppliers and they have greater means of redress for disputes and grievances should they arise. Owners of small businesses that are incorporated or set up as limited liability companies are already protected by the corporate or LLC shell and cannot be pursued unless they have signed a personal guaranty.
The Future of the Minnesota Bill
ACA continues to work with a coalition of accounts receivable management industry partners to provide input on the proposed bill to legislators. Bill amendments passed out of the Senate committee on Commerce and Consumer Protection related to thirdparty debt collection include:
- Requiring health care providers to make their policy for collection of medical debt from patients available to the public.
- Preventing health care providers from denying medically necessary health treatments or services to a patient, any member of the patient’s family, or household because of outstanding medical debt.
- Creating several prohibited practices for collecting parties. These include “threatening wage garnishment, [using] sheriffs or officers to serve legal papers in connection with a claim, and [using] or threaten[ing] to use methods of collection [that] violate Minnesota law.”
- Setting the interest rate for medical debt at a rate of $4 upon $100 for a year.
- Exempting funds in a depository account up to $4,000.
- Exempting funds up to $4,000 in value during a bankruptcy.
If the legislation moves forward in its current form, it would make Minnesota the only state with a three-year statute of limitations coupled with a five-year nonrenewable judgment.
Excitement Awaits in San Diego
By Valerie Ingold, IACC President
What else can I say about mid-year conferences that I haven’t already? Well to start, the IACC mid-year event is in San Diego this summer! I’ve been to San Diego quite a few times, both for conferences and to see clients in and around the area. It’s a great area to have business in. The city has great restaurants, it’s right on the water and the weather is always fantastic. I recently had the opportunity to visit with my family, though, and experienced the city in a whole new way. Fourteen of us descended on the city for a long weekend and packed our days with adventure. Our group ranged in ages from under a year old to into our 40s, and we found something for everyone while we were there.
We spent time at Belmont Park, with the kids making themselves sick on the rides and the adults making ourselves sick on ice cream. We split a day up and spent the morning at Ocean Beach watching the teenagers attempt to surf and got a little retail therapy in the afternoon in Old Town. We spent a whole day at the San Diego Zoo and Balboa Park—and probably could have added another day there, to be honest. We spent a whole day at La Jolla, hanging out on the beach, shopping and golfing. And we ate like royalty! Every meal was better than the last. My time there gave me a whole new perspective on a city I thought I knew well.
I say all this to tell you that what I thought of as an in-and-out city to see clients or attend a conference is a trip that, when given the choice, I would extend into a family vacation in a heartbeat. If I say so myself, we at the IACC pick great locations: Miami most recently, Puerto Rico in January and San Diego in July. As I’ve said before, you can’t beat the mid-year conference to connect with colleagues in a more intimate setting, get to know each other even better and introduce first-time attendees to our organization and industry. And San Diego, with its vibrant culture, stunning coastline, and abundance of attractions, epitomizes the perfect setting for a mid-year conference. Beyond the first-rate education and great networking opportunities of the conference, you can immerse yourself in the dynamic energy of the city, leveraging the extra downtime to explore its offerings.
And I now know that blending a mid-year conference with a family vacation in San Diego would transform a pretty great business trip into a multifaceted adventure. The city’s family friendly amenities and activities cater to all ages, ensuring that while professionals are engaged in the conference, their loved ones can indulge in unforgettable experiences nearby. As demonstrated by my recent family getaway, San Diego proved to be not just a destination for business, but a destination for creating amazing memories. Attending a midyear conference in San Diego doesn’t have to just be about connecting with colleagues and getting up to date on the latest in the industry; it can also be about seizing the chance to blend work with leisure, creating a well-rounded experience that leaves a lasting impression on both personal and professional fronts.
So, when considering attending our mid-year conference, seize the opportunity to transform it into a memorable family adventure, enriching not only your career but also your life! We can’t wait to see you there!
Click to read in Spanish
¿Qué más puedo decir sobre las conferencias de mitad de año que no haya mencionado ya? ¡Bueno, para empezar, esta vez la conferencia de mitad de año se llevará a cabo en San Diego! He estado en San Diego varias veces, tanto para conferencias como para visitar clientes en la zona y sus alrededores. Es un área fantástica para hacer negocios. La ciudad cuenta con excelentes restaurantes, está justo en la costa y el clima siempre es fantástico.
Recientemente tuve la oportunidad de visitarla con mi familia y experimenté la ciudad de una manera completamente nueva. Catorce de nosotros nos aventuramos en la ciudad para un fin de semana largo (viernes a miércoles) y llenamos nuestros días de aventuras. Fuimos desde bebés de menos de un año hasta personas de más de 40 años y encontramos algo para todos mientras estábamos allí. Pasamos tiempo en Belmont Park con los niños divirtiéndose en las atracciones y los adultos disfrutando de los helados. Dividimos un día y pasamos la mañana en Ocean Beach viendo a los adolescentes intentar surfear y nos dimos un poco de terapia de compras por la tarde en Old Town. Pasamos un día entero en el Zoológico de San Diego y en Balboa Park y probablemente podríamos haber agregado otro día allí, para ser honestos. Pasamos un día entero en La Jolla, pasando el rato en la playa, de compras y jugando al golf. ¡Y comimos como reyes! Cada almuerzo y cena eran mejores que los anteriores. Mi tiempo allí me dio una perspectiva completamente nueva sobre una ciudad que pensaba que conocía bien.
Digo todo esto para decirte que lo que pensaba que sería una visita rápida a la ciudad para ver clientes o asistir a una conferencia es un viaje que, si me dan a elegir, extendería en un abrir y cerrar de ojos para convertirlo en unas vacaciones familiares. Si me permites decirlo, nosotros en la IACC elegimos excelentes ubicaciones: Miami, y ahora Puerto Rico en enero, y este año San Diego en julio. Como he dicho antes, no hay nada como la conferencia de mitad de año para conectarse con colegas en un entorno más íntimo, conocernos aún mejor e introducir a los asistentes por primera vez a nuestra organización e industria. Y San Diego, con su vibrante cultura, impresionante costa y abundancia de atracciones, encarna el escenario perfecto para una conferencia de mitad de año. Más allá de la excelente educación y las excelentes oportunidades de networking de la conferencia, puedes sumergirte en la energía dinámica de la ciudad, aprovechando el tiempo libre adicional para explorar lo que ofrece.
Y ahora sé que combinar una conferencia de mitad de año con unas vacaciones familiares en San Diego transformaría un viaje de negocios bastante bueno en una aventura multifacética. Las comodidades y actividades familiares de la ciudad satisfacen todas las edades, asegurando que mientras los profesionales participan en la conferencia, sus seres queridos puedan disfrutar de experiencias inolvidables cerca.
Como demostró mi reciente escapada familiar, San Diego resultó ser no solo un destino para los negocios, como había experimentado anteriormente, sino un destino para crear recuerdos increíbles. Asistir a una conferencia de mitad de año en San Diego no tiene por qué ser solo para conectar con colegas y ponerse al día con lo último en la industria; también puede tratarse de aprovechar la oportunidad para combinar el trabajo con el ocio, creando una experiencia completa que deja una impresión duradera tanto en el ámbito personal como profesional.
Entonces, al considerar asistir a nuestra conferencia de mitad de año, aprovecha la oportunidad de convertirla en una aventura familiar memorable, enriqueciendo no solo tu carrera sino también tu vida. ¡Estamos ansiosos por verte allí!
Click to read in French
Que puis-je dire de plus sur les conférences de mi-année que je n’ai pas déjà mentionné ? Eh bien, pour commencer, cette mi-année se déroule à San Diego !! J’ai été à San Diego plusieurs fois, à la fois pour des conférences et pour rencontrer des clients dans la région. C’est un excellent endroit pour faire des affaires. La ville possède d’excellents restaurants, elle est située en bord de mer et le temps y est toujours fantastique. Récemment, j’ai eu l’occasion de visiter la ville avec ma famille et j’ai découvert la ville d’une toute nouvelle manière. Quatorze d’entre nous ont débarqué dans la ville pour un long week-end (du vendredi au mercredi) et avons rempli nos journées d’aventures. Nous allions de moins d’un an à plus de 40 ans et avons trouvé quelque chose pour tout le monde pendant notre séjour là-bas. Nous avons passé du temps à Belmont Park avec les enfants qui se rendaient malades sur les manèges et les adultes qui se rendaient malades avec des glaces. Nous avons passé une journée à Ocean Beach le matin à regarder les adolescents essayer de surfer et l’après-midi à faire du shopping dans le Vieux San Diego.
Nous avons passé une journée entière au zoo de San Diego et à Balboa Park et aurions probablement pu ajouter une autre journée là-bas pour être honnête. Nous avons passé une journée entière à La Jolla, à traîner sur la plage, à faire du shopping et à jouer au golf. Et nous avons mangé comme des rois ! Chaque déjeuner et dîner étaient meilleurs que les précédents. Mon séjour là-bas m’a donné une toute nouvelle perspective sur une ville que je pensais bien connaître. Je vous dis tout cela pour vous dire que ce que je considérais comme une ville de passage pour rencontrer des clients ou assister à une conférence est en réalité un voyage que, si j’avais le choix, je prolongerais en vacances familiales en un instant. Je dois dire que nous à l’IACC choisissons de superbes endroits – Miami, et maintenant Porto Rico en janvier, et cette année San Diego en juillet. Comme je l’ai déjà dit, vous ne pouvez pas battre la mi-année pour vous connecter avec des collègues dans un cadre plus intime, apprendre à mieux vous connaître et présenter aux nouveaux participants notre organisation et notre industrie. Et San Diego, avec sa culture vibrante, sa côte magnifique et sa multitude d’attractions, incarne le cadre parfait pour une conférence de mi-année. Au-delà de l’éducation de première classe et des excellentes opportunités de réseautage de la conférence, vous pouvez vous immerger dans l’énergie dynamique de la ville, en profitant du temps libre supplémentaire pour explorer ses offres. Et maintenant, je sais que mêler une conférence de mi-année à des vacances en famille à San Diego transformerait un voyage d’affaires déjà génial en une aventure multifacette. Les équipements et activités adaptés aux familles de la ville garantissent que pendant que les professionnels sont occupés à la conférence, leurs proches peuvent se livrer à des expériences inoubliables à proximité.
Comme le montre ma récente escapade en famille, San Diego s’est révélée être non seulement une destination pour les affaires, comme je l’avais déjà vécu, mais aussi une destination pour créer des souvenirs incroyables. Assister à une conférence de mi-année à San Diego ne doit pas seulement être l’occasion de se connecter avec des collègues et de se mettre à jour sur les dernières tendances de l’industrie ; cela peut aussi être l’occasion de saisir la chance de mêler travail et loisirs, créant une expérience complète qui laisse une impression durable tant sur le plan personnel que professionnel. Ainsi, lorsque vous envisagez d’assister à notre conférence de mi-année, saisissez l’opportunité de la transformer en une aventure familiale mémorable, enrichissant non seulement votre carrière mais aussi votre vie ! Nous avons hâte de vous y voir !
Click to read in Chinese
关于年中会议，我还能说些什么呢？首先，今年的年中会议将在圣地亚哥举行！我去过圣地亚哥很多次，既参加过会议，也见过周围地区的客户。这是一个很适合做生意的地方。这个城市有很多很棒的餐厅，它就在水边，而且天气总是很好。 最近，我有机会和我的家人一起去圣地亚哥，以一种全新的方式体验这座城市。我们一共十四人，在一个长周末（周五至周三）里踏上了这座城市，并度过了充满冒险的日子。我们的年龄跨度很大，从不到一岁的孩子到四十多岁的人都有，而我们在那里时为每个人都找到了合适的活动。我们在贝尔蒙特公园和孩子们一起玩过那些过山车，而成年人则享受了美味的冰淇淋。我们分开了一天的时间，上午在海洋滩观看年轻人尝试冲浪，下午在老城区进行了一些零售疗法。我们在圣迭戈动物园和巴尔博亚公园度过了一整天，说实话，我们可能还能再加一天。我们在拉荷亚度过了一整天，在海滩上闲逛，购物和打高尔夫球。而且我们像王室一样享用美食！每顿午餐和晚餐都比上一顿好。我在那里的时光给了我对这座我以为很了解的城市一个全新的视角。 我说这些是想告诉你，我之前以为只是去城市见客户或参加会议的一次行程，现在却可以选择将其延长成一次家庭度假。我认为，我们IACC选择了很棒的地点 – 迈阿密，现在是一月的波多黎各，今年七月是圣地亚哥。正如我之前所说，你无法击败年中会议，以更亲密的方式与同事联系，更好地了解彼此，向首次参会者介绍我们的组织和行业。而圣地亚哥，以其充满活力的文化，令人惊叹的海岸线和丰富的景点，成为年中会议的完美场所。除了会议的一流教育和出色的社交机会之外，你还可以沉浸在这座城市的动态能量中，利用额外的休闲时间探索其各种活动。 现在我知道，将年中会议与圣地亚哥的家庭度假融合在一起，会将一次相当不错的商务旅行变成一次多层次的冒险。这座城市的适合家庭的设施和活动适合各个年龄段的人，确保在专业人士忙于会议时，他们的亲人可以在附近尽情享受难忘的经历。 就像我最近的家庭出游所展示的那样，圣地亚哥不仅是一个商务目的地，正如我之前所经历的那样，也是一个创造美好回忆的地方。参加圣地亚哥的年中会议不仅仅是为了与同事建立联系，了解行业最新动态；它还可以是抓住机会将工作与休闲相结合，创造一个全面的体验，对个人和职业生涯都留下持久的印象。 因此，考虑参加我们的年中会议时，抓住机会将其变成一次难忘的家庭冒险，不仅丰富了你的职业生涯，也丰富了你的生活！我们迫不及待地想在那里见到你！
Click to read in Arabic
سان دييغو!! لقد ذهبت إلى سان دييغو عدة مرات، سواء لحضور المؤتمرات أو لرؤية العملاء في المنطقة ومحيطها. إنها منطقة رائعة للقيام بالأعمال التجارية فيها. تحتوي المدينة على مطاعم رائعة، وهي مباشرة على الماء، والطقس دائمًا رائع. لقد كانت لدي الفرصة مؤخرًا لزيارة المدينة مع عائلتي وتجربتها بطريقة جديدة تمامًا. نحن أربعة عشر شخصًا نزلنا على المدينة لعطلة نهاية الأسبوع الطويلة (من الجمعة إلى الأربعاء) وقضينا أيامنا مليئة بالمغامرة. كانت أعمارنا تتراوح بين سنة واحدة وحتى أربعين عامًا، ووجدنا شيئًا للجميع أثناء وجودنا هناك. قضينا وقتًا في حديقة بلمونت مع الأطفال الذين جعلوا أنفسهم يشعرون بالمرض على الألعاب والبالغين الذين جعلوا أنفسهم يشعرون بالمرض على الآيس كريم. قسمنا اليوم وقضينا الصباح في شاطئ المحيط لمشاهدة المراهقين وهم يحاولون التزلج على الماء وقمنا بعملية شراء بعض الأشياء في فترة ما بعد الظهر في المدينة القديمة. قضينا يومًا كاملا في حديقة سان دييغو وحديقة بالبوا وربما كان يمكننا إضافة يوم آخر هناك بصدق. قضينا يومًا كاملا في لا جولا، نتمشى على الشاطئ، ونتسوق، ونلعب الجولف. ولقد تناولنا الطعام كما لو كنا ملوكًا! كان كل غداء وعشاء أفضل من السابق. أعطتني وقتي هناك منظورًا جديدًا تمامًا عن المدينة التي اعتقدت أنني أعرفها جيدًا. أقول كل هذا لأخبركم بأن ما اعتبرته مدينة تمر فيها لرؤية العملاء أو حضور المؤتمرات هو رحلة تُمدد إلى عطلة عائلية في لحظة اختياري. إذا قلتُ ذلك بنفسي، فإننا في IACC نختار مواقع رائعة – ميامي، والآن بورتو ريكو في يناير وهذا العام سان دييغو في يوليو. كما قلت من قبل، لا يمكنكم هزيمة منتصف العام للتواصل مع الزملاء في بيئة أكثر حميمية، والتعرف على بعضكم البعض بشكل أفضل، وتقديم الحضور لأول مرة لمؤسسةنا وصناعتنا. وسان دييغو، بثقافتها النابضة بالحياة، وساحلها الخلاب، ووفرة المعالم، تجسد الإعداد المثالي لمؤتمر منتصف العام. وبالإضافة إلى التعليم الممتاز والفرص الرائعة للتواصل في المؤتمر، يمكنك أيضًا أن تغمر نفسك في الطاقة الديناميكية للمدينة، واستغلال الوقت الفراغي الإضافي لاستكشاف ما تقدمه. والآن أعلم أن مزج مؤتمر منتصف العام مع عطلة عائلية في سان دييغو سيحول رحلة عمل رائعة إلى مغامرة متعددة الجوانب. وتتيح وسائل الراحة والأنشطة الموجهة للعائلات في المدينة لجميع الأعم
Collection Companies Turn to ACH for Speed and Ease
Companies are increasingly moving away from paper checks in favor of electronic payments like ACH. An ACH payment transfers money between bank accounts using the Automated Clearing House Network. The system has been around for decades, but when internet-initiated electronic check applications were introduced in 2001, ACH use started to take off. Nacha, the entity that governs ACH, reported that the ACH Network securely handled 31.5 billion payments valued at $80.1 trillion in 2023, and that B2B payment volume on the ACH Network saw double-digit growth last year. Lee VandenHeuvel, president of Ross, Stuart & Dawson Inc., said that his company has significantly reduced its use of paper checks over the past few years. In fact, it now encourages debtors to pay via ACH or credit card in lieu of checks.
As for vendors, 95% of incoming invoices are now paid with a credit card on file or ACH. ACH payments make up about 50% of the company’s total debtor payments, followed by credit cards at 23% and checks at 24%. VandenHeuvel said that it was the U.S. Postal Service’s mail delivery delays that led his company to start promoting electronic payment methods like ACH. “I never thought that as a collection agency we would be paperless and not accepting checks,” VandenHeuvel said. “And now here we are in 2024 and we’re doing both: we’re paperless and we don’t take checks.”
Benefits of ACH
Switching to ACH payments brings multiple benefits, including lower administrative costs. The median cost of initiating and receiving an ACH payment for businesses is between 26 cents and 50 cents, according to an Association for Financial Professionals survey, compared to a median cost of between $2.01 and $4 for paper checks. VandenHeuvel pointed out that even if you do remote capture with paper checks, you still have staff running the remote capture machine and reconciling checks with the bank. “And I would add the expense side goes down with ACH because we’re not paying collector resources as much to chase debtors down for their missing checks—it’s fewer calls and fewer emails, because once you do ACH it’s kind of on autopilot,” VandenHeuvel said.
ACH transactions are also faster than waiting for delivery from the U.S. Postal Services, resulting in reduced collection and remittance times. “There’s a pretty significant appetite for people to be paid sooner,” said Joe Batie, president and chief commercial officer at Caine & Weiner. “There’s no advantage for us to have the float.” Batie said his company decided to transition from paper checks to ACH five years ago in part to reduce fraud exposure due to stolen checks. Checks have long been the payment method most vulnerable to fraud, according to the 2023 AFP® Payments Fraud and Control Survey, with 63% of respondents reporting their organizations faced fraud activity via checks. Criminals have been increasingly targeting the U.S. Postal Service to commit check fraud since the COVID-19 pandemic.
The Financial Crimes Enforcement Network recently alerted banks that there’s been a nationwide surge in check fraud. Batie acknowledged that there are some security risks with ACH—for example, payments could be intercepted if account security measures are not in place. It’s important to implement multi-factor authentication for ACH transactions to protect against unauthorized payments leaving an account. He also recommended having approval processes for auto-drafts from vendors to prevent funds from being released without confirmation.
Changing Payment Behavior
It’s hard to change a habit, especially one as longstanding as checks. Caine & Weiner started pushing ACH payments by focusing on client remittances since that was where they had the highest volume of paper checks. When new clients came on, the company told them that its standard remittance was ACH. Batie estimated that 98% of new clients in the last five years have used ACH remittances from the start. After successfully transitioning clients to ACH, the company then focused on vendors with recurring payments. Setting up vendors for auto-draft or sending them ACH payments created efficiencies for both parties. Batie said vendors are happier receiving payments via ACH since the money is immediately available in their bank account. Sending invoices and payment details electronically along with ACH payments reduces paperwork for both the collection company and vendors.
“From there, it’s sort of grown as we thought of other ways we can utilize ACH to minimize the risk of checks floating out in the world,” Batie said. “Now we are polling all of our attorney partners to ask, ‘What does it look like for you to accept ACH?’ That’s an ongoing project.” VandenHeuvel’s company updated all its demand letters and email templates to give debtors simple instructions on payment methods. The letters now state: “You can pay online at [payment portal link] via credit, debit or ACH.” “We’ve made an effort to discourage debtors from mailing us a check,” VandenHeuvel said. “We don’t want checks anymore. We treat them like obsolete objects. We don’t want to write them and send them to our vendors. We don’t want debtors to send them to us because we don’t know if we’ll get them. It takes a lot of time and resources to chase checks down.”
Ross, Stuart & Dawson Inc. will make an exception, such as if debtors tell the company they don’t have credit cards and absolutely refuse to use ACH, but it’s used as a last resort to get the payment. “I won’t reject a payment just because they don’t want to give us money in our preferred way,” VandenHeuvel said. “We will take a check when we must. We’re just not going to promote or encourage it.” He estimated that 80% of IACC agency members would say they are taking payments by ACH, credit cards and checks, “but I would think they would all say that the percentages are skewing higher towards the electronic side—ACH and credit cards—and less on the checks.”
While there will probably always be a small percentage of clients and vendors who prefer to use paper checks rather than fully transitioning to ACH payments, as younger generations enter the business world, ACH use will likely increase. “There are probably some holdouts in every corner of our industry,” Batie said. “But I think that over time, the percentage of people who prefer ACH will continue to grow.”
New Members as of March 11, 2024
Associate Membership
The Moore Group Santa Ana, California
Gantoi Furculita Si Asociatii Bucharest, Romania
Lippman Recupero Tucson, Arizona
New Member-Get-A-Member Program
IACC is committed to growing its membership. We are excited to announce that we’re now offering a referral credit bonus to anyone who refers a new member and is accepted into the IACC.
Program Benefits
- For every approved new member you refer, you will receive $250 in IACC credit.
- If that new member renews for a second year, you will receive an additional $100.
- There is no limit to the number of referrals you can submit—we welcome as many new members as you can provide.
- You can use this credit toward membership dues, education programming, convention registration, or directory upgrades.
The Fine Print
- You must be listed as the referral source on the prospective member’s application to receive the credit.
- Credits expire after two years.
- You must email IACC or call (952) 925-0760 to redeem your credit.
- If the credit is used for registration to an event or educational programming, please contact the IACC staff before you register to ensure application of your credit.
- You cannot split a credit. For example, you can’t take a $250 credit and apply $125 toward a convention registration and $125 toward dues. The full value must be applied.
Let CIA Protect Your Business
Collectors Insurance Agency provides IACC members exclusive access to world-class commercial insurance products, including bonds and licensing services tailored to each member’s specific needs. Our staff offers the highest degree of professional care and ethics.
Insurance
Collectors Insurance Agency is staffed with licensed professionals dedicated to helping IACC members succeed. We provide 24-hour turnaround for certificates of insurance, assistance with your applications, a proactive review of your losses and corrective measures, a review of your clients’ contractual insurance requirements, coverage audits, and exposure analysis of your outside-the-box professional services.
Licensing
Our professional staff works with proprietary automation to bring you the finest, most affordable licensing service available. We offer:
- Qualifications
- Initial Licensing
- License Renewals
- Amendments
- Withdrawals
Bonds
Collectors Insurance Agency’s renowned surety Bond Program offers automatic renewals, expedited on-site document preparation, highly competitive rates, and a thorough knowledge of your bonding requirements.
To learn more about our industry specific commercial insurance, surety programs and licensing services, call (952) 926-6547 and ask for the Collectors Insurance Agency.
Former IACC Executive Director Ted Smith to Retire
Smith's career, both with IACC and ACA International, is marked with many achievements.
IACC’s former executive director Ted Smith announced that he will retire from his role as chief operations officer of ACA International on June 7, 2024, after serving the third-party and commercial collection industry for close to 40 years. Notably, Smith led IACC for 20 years, from 1990-2010.
IACC Leadership Highlights Smith helmed IACC during a key time in its history, with the association moving toward a more expansive and forward-thinking mindset. During his tenure, IACC launched the Certified Commercial Collector Program and unveiled its Agency Certification Program. It also redefined its membership, breaking it into four categories: agency, associate, law list and affiliate.
IACC experienced many changes under Smith’s leadership. For example, in 1994, the board voted to change the name of the association from the American Commercial Collectors Association to the International Association of Commercial Collectors. Later, it moved into the digital age, holding its first-ever teleseminar in 2000 and launching its website in 2003. Smith played a pivotal role in promoting the commercial collection industry to a variety of audiences. Whether he was hosting an IACC booth at a credit industry event or making connections between IACC and ACA members, Smith has always been a passionate collection industry supporter.
In 1995, when Steven Hoffenberg of Towers Financial Corp. was in the headlines for defrauding investors out of $475 million in what the SEC called “one of the largest Ponzi schemes in history,” the commercial collection industry received a wave of negative press. Smith and some IACC board members publicly advocated for the industry and were quoted in articles about the industry’s ethics in The Wall Street Journal and The Bureau of Business Practice.
ACA Leadership Highlights
At ACA International, Smith has worn many hats. He joined the association’s public affairs department in the 1980s, working to help members understand the new reality of the Fair Debt Collection Practices Act and planning ACA’s Legislative Conference, which eventually evolved into the Washington Insights Fly-In. He has been a steady hand in the leadership of Collectors Insurance Agency, which offers cyber insurance, E&O insurance, bonding and licensing, among many other products, to ACA and IACC members. Smith also leads the information technology team at ACA and has been an integral component of ACA’s Affinity Program, which identifies and brings on service providers that have special offerings for ACA members.
Retirement Announcement Brings Well Wishes
“Ted Smith hired me in 1998 to serve as the communications specialist for IACC when he was the executive director. I had never worked for an association before. Honestly, I had no idea what associations were about! Under Ted’s mentorship, I learned incredible lessons about how to care for members—how to really listen to their needs and to always make their positive experience with IACC the highest priority. While our roles have shifted over time, I have worked for and with Ted in some way or another for the last 25 years. I’m so appreciative of the guidance he provided when I was new in my career and of the supportive colleague he’s been through the years.” -Jessica Hartmann, IACC executive director.
“I was very happy to have served on the IACC Board of Directors for many years while Ted was the executive director. As a new attendee, Ted always made me and my wife Mary feel welcome and accepted. Then I let Ted talk me into serving on the board, where I got to work with Ted and other leaders of the association. Ted was always prepared for every meeting, and he was the guiding light for all things IACC. In addition, he was also a hell of a golfer, and a lot of fun to be around.
In 2008, The Bessenbacher Co. was celebrating its 75th business anniversary and we had nice gathering of folks in town for a celebration dinner and remarks. Ted was invited and he attended in person, presenting a plaque to Jim Bessenbacher Sr. and myself on behalf of the IACC. It was a very kind gesture and a fun time. At the end of the celebration, I drove Ted and Tom Hamilton for a quick tour of downtown Kansas City. We ended up at a well-known KC bar on Broadway St. While we were sitting at the bar, Ted started complaining that he was in Kansas City but had yet to see any of the famous KC barbeque, and he would be flying out the next morning. As the night went on, and Ted continued to whine to the bartender, the bartender decided he had heard enough from the northerner, so he grabbed a package of barbeque potato chips from the bar, and threw them at Ted, saying, ‘Fine, here’s your barbeque, now stop complaining.’ It was hilarious, and we were not charged for the chips. Happy retirement, Ted, and now go ice fishing and play golf!” -Jim Bessenbacher Jr., president, BARR Credit Services
“We congratulate Ted Smith on his well-deserved retirement with both fondness and admiration. I first met Ted at a conference in Monterey, California, when IACC was first called ACCA. I had been invited to that ‘members only’ meeting as a speaker. Over the years and many conferences later, Ted became an integral part of the IACC community, serving for 20 years as executive director with unparalleled dedication and expertise. During his tenure, Ted exemplified the qualities of an outstanding executive director. His leadership, professionalism, and unwavering commitment propelled the organization forward to what it is today, earning him the utmost respect and admiration from colleagues and members alike. As an IACC board member (2006 to 2022), I had the privilege of witnessing firsthand Ted’s exceptional talents and passion for advancing the mission of IACC by acting as a statesman, bringing all sides together for the organization’s good. In my experience serving on various boards, Ted stood out as the ‘best of the best,’ consistently going above and beyond to ensure the success and prosperity of our association. For example, Ted traveled to Kansas City to help an IACC member, The Bessenbacher Co., celebrate its most significant anniversary. Beyond his professional accomplishments, Ted’s warmth, kindness and genuine friendship have left a lasting impact on all who have had the pleasure of working with him.
The IACC has always been known for its camaraderie and welcoming nature. That started under the leadership of Ted Smith. He will be greatly missed, but we take comfort in knowing that his legacy will continue to inspire us for years to come.” -Tom Hamilton, executive vice president, American Lawyers Company.
Want to Reach Out?
We invite the community and our valued members to join us in celebrating Smith’s remarkable achievements and his enduring impact on the ARM industry. You can send your well wishes to Ted at tsmith@acainternational.org.
Top 10 Benefits of Bringing a Younger Team Member to IACC Events
Thoughts from the Emerging Leaders Committee
Joe Batie, Caine & Weiner
Rebecca Robitaille, Franklin & O'Brien
Michelle Lindsay, ABC-Amega
As 2024 recipients of the Robert P. Ingold IACC Emerging Leader Award, Rebecca Robitaille and Michelle Lindsay are honored to share their experiences with the hope that, as an association, we can continue to attract and retain young members.
Rebecca Robitaille shares:
When David Franklin encouraged me to attend my first-ever IACC conference, it was somewhat intimidating. Although I had worked with many of the coattendees, it was another thing to be put into the same room as the owners and presidents of so many successful agencies and firms. However, being entrusted with the responsibility and receiving a warm welcome by the co-attendees made me feel valued and motivated to become more engaged, not only within the IACC but within the industry in general. On a personal level, creating relationships with our client contacts and especially with our International partners (many of whom I work with on a daily basis) has had a notable impact on our success and profit. I know that I can rely on them to give our clients their best efforts and they are always ready to share their knowledge and experience with me. For these reasons and many others, I am grateful to the IACC and its members for their positive influence on my career.
Michelle Lindsay shares:
Before attending the 2023 IACC Conference I had a difficult time envisioning a future of career advancements in the field of commercial collections. Having only met a small number of the attorneys I have been working with for nearly a decade in person, I did not fully understand the scope of the commercial collections network, and how close-knit of a community it is. Returning to work after the conference, I had a much clearer view of the paths available for me to explore and a renewed passion to help my team succeed. I gained confidence in my networking skills and felt inspired to engage in the IACC committees. This engagement continues to strengthen my ties to the field of commercial collections and has helped me identify areas to focus on to improve my leadership skills. I can easily see a future for myself in this field, and I look forward to seeing where my career goes with the support of an amazing network of people.
Here are the top 10 benefits of bringing along someone new to the IACC Mid-Year Conference (and beyond):
Investing in the Future
- Leadership Pipeline Development: Foster the next generation of collection agency leaders, ensuring long-term stability and growth for your industry.
- Fresh Perspectives & Ideas: Younger leaders bring innovative thinking and new approaches to industry challenges, driving progress and adaptability.
- Increased Engagement & Retention: Invest in your future leaders, they’ll feel valued and more likely to stay engaged with the association and the industry.
Boosting Performance
- Cutting-Edge Knowledge & Skills: Equip them with the latest industry trends, compliance updates, and best practices from leading experts.
- Networking & Mentorship Opportunities: Connect them with industry veterans, fostering valuable relationships and accelerating their development.
- Collaboration & Problem-Solving: Encourage cross-generational collaboration, leading to more effective solutions and knowledge sharing within companies.
Building a Stronger Association
- Diversifying Your Membership: Attract younger talent and increase the breadth of perspectives represented in your association.
- Volunteer & Leadership Recruitment: Expose future leaders to the association’s work, leading to more engaged volunteers and future leaders.
- Industry Advocacy & Public Image: Showcase the future of the industry with a vibrant young generation, enhancing your public image and advocacy efforts.
- Member Value Proposition: Demonstrate your commitment to future leaders, adding value to your membership for company owners.
By investing in younger and emerging leaders, we’re not just securing the future of our respective firms, but also playing a integral role in the future of the entire commercial collection industry.
Announcing New Initiatives
The IACC Board of Directors is pleased to announce the following incentives:
- Offer scholarship opportunities to make attendance more accessible for younger leaders.
- Create dedicated sessions or networking events specifically for them.
- Highlight their contributions and successes during the conference to amplify their impact.
New York Eliminates Certificates of Conformity
New York will update its previous archaic statute with an amendment going into effect Jan. 1, 2024
By Wanda Borges, Borges & Associates Syossett, NY
The requirement by New York courts to have a Certificate of Conformity to support a commercial debt collection case has been a bane of existence for many collection agencies, trade credit grantors and attorneys alike. For those who have never had the pleasure (or displeasure) of dealing with them, here is the explanation. New York’s Civil Practice Law and Rules 2309(c) states:
Oaths and affirmations taken without the state. An oath or affirmation taken without the state shall be treated as if taken within the state if it is accompanied by such certificate or certificates as would be required to entitle a deed acknowledged without the state to be recorded within the state if such deed had been acknowledged before the officer who administered the oath or affirmation.
This is adapted from New York Real Property Law 299-a, which mandates that an oath or affirmation taken in a state outside of New York for use within New York must be accompanied by a certificate signed by an attorney stating that the oath or affirmation conforms with New York state or local law.
If I am Not in New York, Why Do I Care?
Here’s the rub! Whenever a debt collection matter was to be commenced or continued in New York, no matter where the plaintiff/creditor was located, that creditor had to either verify the complaint or sign an affidavit as to the facts of the case. If that affidavit was taken outside of New York state, the affidavit had to be notarized, and then an attorney in that sister state had to sign a certificate stating that the notarization was done in conformity with the laws of that state. Well, not every creditor has an attorney readily available to sign such a certificate, and this has been a problem. Some New York attorneys have gotten into the habit of verifying the initial pleading/complaint for out-of-state creditors in order to avoid this requirement. Nevertheless, if a motion for judgment needs to be made at a future date, then an affidavit of the actual creditor has been required and that affidavit must have been accompanied by a Certificate of Conformity.
CPLR 2106 Amendment
The Memorandum in Support of the amendment stated that “the requirement that litigants and other court participants have documents notarized is unduly burdensome, and federal law removed such requirements for federal courts decades.” This amendment “will align New York with the over 20 states that follow federal practice. It will relieve unnecessary burdens on litigants, nonparty witness, county clerks, and courts.” The amended CLPR 2106 now states: “The statement of any person, wherever made, subscribed, and affirmed by that person to be true under the penalties of perjury, may be used in an action in New York in lieu of and with the same force and effect as an affidavit. Such affirmation shall be in substantially the following form:
I affirm this ___ day of _______, ___, under the penalties of perjury under the laws of New York, which may include a fine or imprisonment, that the foregoing is true, and I understand that this document may be filed in an action or proceeding in a court of law.”
Effective for New and Existing Matters
The amendment specifically states that it is effective on Jan. 1, 2024, and that it shall apply to all actions commenced on or after that date as well as all actions pending on that date. Therefore, creditors, collection agencies and law firms can now breathe a sigh of relief as New York updated its previous archaic statute.
Global Debt Ripple Effect: How Rising Delinquencies in the Middle East Could Impact the US Economy
By Ayman Al Wadi, AW Holding
A looming debt crisis is mounting in the Middle East, particularly in countries like Egypt, Lebanon, Tunisia and Jordan. Here, I break down the various factors that have contributed to this crisis.
Geopolitical Tensions
The conflict between Ukraine and Russia prompted the Federal Reserve System to implement unprecedented measures, including raising interest rates for banks. These actions were taken to mitigate the inflationary effects stemming from the war and the soaring prices of energy and grains exported from both countries.
Fluctuations in Oil Prices
The fluctuations in oil prices prompted several major oil-producing countries to scale back unconditional financial support. This was done to encourage fiscal consolidation within the economic systems of certain countries in the same region.
Economic Diversification Challenges
In the Gulf region, countries such as the United Arab Emirates, Saudi Arabia, Qatar and others are diversifying their economies away from reliance on a single source of income. This shift involves investing significant funds into various industries and economic activities, which can present considerable challenges. Many are undertaking large-scale projects aimed at maximizing profitability, with some relying on debt programs to finance them.
Interconnectedness of the Global Economy
In recent years, the global economy has become more interconnected than ever before, with nations increasingly influencing each other’s economic activities. This is primarily attributed to the movement of goods, capital investments and people across borders, which has had profound effects on global production, consumption and financial markets. A decline in international trade has a negative impact on all of us. This translates to reduced demand for exported goods, resulting in decreased consumption of oil and gas to operate factories. Consequently, oil-producing countries experience a decline in income, potentially leading to reduced spending on projects they pursue. This, in turn, reduces opportunities for hiring service providers, employment chances, income, and may lead to difficulties in meeting debt installment deadlines and interest payments. Ultimately, this creates a cycle of reduced spending by people, perpetuating the same challenges over and over.
You may feel there isn’t much of a link between your business interests in the U.S. and such delinquencies, but I would encourage you to think again.
The Potential Impact on the U.S.:
- Increased Loan Defaults: U.S. banks may experience increased defaults from borrowers in the Middle East, which could affect their profitability. This situation may result in delays in receiving debt payments on time, prompting the need to reschedule payment dates, offer discounts for one-time full settlements, or lower interest rates to incentivize early repayment. These actions could lead to delays in profit sharing and other financial implications.
- Market Volatility: According to Statista, the Middle East accounts for 31.3% of global oil production. If volatility hits the market in the Middle East/North Africa region, this may lead to disruptions in oil production and exports that could cause a spike in oil prices, especially for American consumers. This would have a ripple effect on the U.S. economy. As discussed earlier, when people spend less, the economy wheel spins less, leading to higher inflation and slower business growth.
- Disruptions in Supply Chains: The Middle East plays a pivotal role in global supply chains. Delinquencies could disrupt the flow of goods and services, impacting U.S. companies’ profits and income. It’s essential for collaborations between the Middle East and U.S. governments to always be in place for the benefit of everyone. Timely B2B debt collection is crucial for the health of businesses, economic growth, job creation, housing stability and overall prosperity.
IACC Emerging Leader Spotlight
Get to know Michelle Lindsay, legal team lead at ABC-Amega.
Where did you grow up?
I grew up in Orchard Park, New York, and graduated from Alfred State College in 2008 with a degree in architecture.
Who have been your strongest influences in your life?
My parents. Both were strong leaders in their careers and put 110% into their jobs, while also managing to parent three children and provide us with meaningful life experiences. They handled it with grace, and now I get to watch them enjoy a well-deserved retirement!
How would you describe yourself using 3 to 5 words?
Compassionate, Authentic, Curious
Do you have any hobbies or outside-of-work passions?
I love being creative and I enjoy exploring new ways of expressing creativity. My favorite hobbies are crocheting, drawing and painting.
What was your first job?
I worked as a sales associate at Famous Footwear.
How long have you been in the collection industry?
I’ve been in the industry for 11 years. I started in collections in 2013.
How did you end up in this industry?
I was working in retail at the time and was looking for my very first 9-5 office job. I worked for YRC Freight as a collector, and later as a team lead.
What is your current role in your company?
Legal Team Lead
Do you prefer to work alone or with a team?
I like a little bit of both. Working from home allows me to focus in a place away from distraction. In those moments where I need the quiet, it’s a saving grace. I also enjoy the opportunities I have to engage with my team through messaging and Zoom calls. We’re one team with one goal, and we do our best to support each other.
What do you enjoy most about the collection industry?
My favorite part of my job is problem solving and working to find the best solution for our clients. There are always problems to solve in collections, and every day brings a new learning opportunity.
What might someone be surprised to know about you?
I taught myself how to play the ukulele!
IACC's Certified Commercial Collector Program
For over 40 years, IACC has promoted excellence through the training and education of commercial collection professionals. IACC believes that collectors must be knowledgeable about a wide variety of issues for their agency to compete effectively in the challenging commercial collection industry. Whether you have new collectors to train or experienced collectors to motivate to higher levels of performance, the IACC Certified Commercial Collector (CCC) program is an affordable tool to help you reach these goals.
IACC is pleased to recognize the following member who has achieved their CCC recently:
- Troy Wesley, Commercial Collection Corp of NY
To begin the process of becoming an IACC Certified Commercial Collector, register on our website at www.commercialcollector/certification.
Questions? Send us an email at iacc@commercialcollector.com.
IACC Shifts Conversation From LinkedIn to Listserv
IACC is always striving to make sure we are offering the best tools available to our members. For the last few years we have offered a few different LinkedIn groups for members to collaborate, network and ask questions. However, they have not been used to their fullest potential so we are making a few changes. On March 1, 2024, we closed the IACC LinkedIn groups. We direct you to follow our one-and-only official LinkedIn page for all updates on the IACC, the industry, and member news.
For a more collaborative communication platform, we will now be offering an opt-in listserv: IACC Connect. For those unfamiliar with the concept of a listserv, by emailing your question or comment to a custom email address, the message will be distributed to the email box of anyone who has opted in to the group. This will allow for more convenient and expedient conversations for members to get answers to questions or discuss industry topics.
Once you have opted in, our team will send you an email inviting you to the listserv. Follow the instructions to save the designated email address in your contacts and set up whether you would like to receive every email in real time, daily digests, or abridged emails. Then you are good to go!
We genuinely hope that these tools will allow you to maximize your connectivity with the IACC and its members. We want to do everything we can to facilitate a collaborative and welcoming environment for everyone.
Pro Tip: If you are concerned about the number of emails this may add to your inbox, we recommend creating a rule that sends all of those emails to a designated folder so your main inbox is not inundated. Just remember to check that folder on a regular basis.
Fortifying the Future: Navigating Cybersecurity and Compliance in Commercial Collections
By Jonathan Goldberger, senior vice president of security practice & strategic sales at TPx
In the dynamic world of commercial collections, efficient operations rely on robust cybersecurity and compliance. As your financial transactions and sensitive data make their way across digital networks, the landscape of potential threats grows, putting your business high on the radar of cyber adversaries. It’s a reality of the digital age, but with the right strategy, it’s one you can navigate with confidence. Today, more than ever, the transition from reactive defense to proactive cybersecurity and governance is not just advisable—it’s imperative.
Navigating Cybersecurity
Navigating the cybersecurity currents in the commercial collection sector demands a strategic pivot from conventional security measures to a robust, proactive defense mechanism. This industry, marked by its handling of sensitive financial data, stands particularly exposed to cyber threats like ransomware—a form of malware that can encrypt a company’s data, crippling operations and eroding client trust. In 2023, 51% of financial service organizations were targeted by ransomware, highlighting the acute vulnerability and potential for severe financial repercussions in this sector. Traditional cybersecurity tactics, which primarily rely on perimeter defenses like firewalls and antivirus software, are increasingly inadequate in this fast-evolving digital arena.
Being proactive about your cybersecurity is key. This involves continuous monitoring and analysis of the cyber environment to identify and mitigate potential threats before they materialize. Think of it as having a smart security guard who’s always on the lookout, ready to spot and stop trouble before it even starts. It’s complemented by the deployment of sophisticated threat intelligence and the adoption of a zero-trust security model, designed to not just anticipate but neutralize threats preemptively. Keeping up with top-notch IT practices is equally important; it’s like making sure the foundation of your house is strong so everything else stays upright.
This holistic cybersecurity strategy extends beyond technological solutions, emphasizing the critical role of employee training and awareness programs. Educating staff on the nuances of cyber threats and safe practices forms a human firewall, significantly reducing the risk of security breaches from within. Such a comprehensive approach to cybersecurity, marrying proactive measures with a stringent adherence to IT standards, is akin to fortifying a digital fortress. It safeguards the essential lifelines of communication and data exchange with clients, ensuring that the commercial collection sector can navigate the turbulent waters of cyber threats without compromise.
Simplify Compliance: Virtual Compliance Officer
This evolution from traditional defenses to a proactive cybersecurity posture not only demands advanced technology but also a strategic approach to compliance and governance. That’s where the Virtual Compliance Officer service (VCO) emerges as a critical ally. The VCO service provides businesses with a clear roadmap to not only meet but exceed regulatory requirements, leveraging TPx’s expertise in both cybersecurity and regulatory compliance. The service encompasses regular gap assessments, continuous monitoring, and expert quarterly review to help you meet regulatory standards, all while minimizing the burden on internal resources. Organizations adopting proactive compliance strategies, as facilitated by the VCO, can reduce their regulatory compliance costs by up to 30%. This is crucial in a world where financial institutions have seen a 38% increase in cyberattacks and the average cost of a data breach in the financial sector has reached $5.97 million.
Join Us for an In-depth Exploration
For commercial collectors, the journey toward proactive cybersecurity and governance is a strategic imperative that integrates cutting-edge technology, regulatory foresight, and a culture of cybersecurity awareness. It’s about building a resilient infrastructure that can weather the storm of cyber threats with ease. We invite you to delve deeper into these issues and discover how your company can elevate its cybersecurity and compliance posture. Register for our upcoming free webinar right here to create a proactive, secure, and compliant future for your business.