mug_strausser

If you are like many of our readers, there never seems to be enough time in a day or a week or a month to get everything done. We handle multiple priorities sometimes with excellent efficiency and at other times with overwhelming misdirection. To quote an old adage, sometimes we feel, “like a chicken with its head cut off,” as we run around in circles with no resolution in sight!

On occasion I visit a local dog racetrack with friends and visitors for a fun afternoon of $2.00 race bets and socializing. The wagers are low and the outcome is relaxing. If you have ever attended a dog or horse race you know that you can bet on a runner to win (coming in first), place (coming in first or second) or show (coming in, first, second or third). Despite the placement, all runners start at the exact same spot and end at the same location too. But not all contestants get from start to finish in the same manner.

What entices the dogs at the racetrack to run is the “rabbit” that electronically races in front of the runners (the rabbit is often named lucky because it is never caught!). It is much like the culture in the collection industry in that we are all racing after that golden client, great opportunity, new revenue stream and creative business model. What is notable about racing is that the difference between a winner in first place and the loser in last place is often by fractions of a second. We run the race closely with our competition at our heels. Virtually all contestants finish the race. Some get winning praise upon their early arrival and the others just arrive behind the rest of the pack. Is your firm winning, placing, showing or just barely getting there these days?

One thing for certain is that the collection race of today is very different from the races of years gone by. The rules have changed. The race is longer and the track is riddled with landmines and obstacles. Unlike the dog races where a machine smoothes the sand on the track after each race, our industry’s track has developed more holes and dangers than at any point in our history. The only way to reach the finish line today is to know how to avoid the pitfalls in our daily race to business success, profitability and compliance. Additionally, the purse for the successful winners has diminished. Our fees are low and liquidations are often in the single digits.

In racing, when a contestant doesn’t show for the race as expected it is called a scratch. The parallel in the collection industry is that we have more and more operators that are calling a scratch. They are throwing in the towel and getting out of the race entirely. Many firms have found a reduction in their competition as some have not kept their enterprises in top shape and are no longer in the best condition to be competitive. They not only consistently finish last but are tripped up on the track’s obstacles due to lack of knowledge of new rules, regulations, cutting edge vendor relationships and industry best practices.

Moving forward there is no doubt that collection firms and departments will evolve into different organizations. To even have access to the proverbial race we will have to have layers of technology, education, security and compliance checks and balances like never before. The competitors will be fewer and the bar will be raised higher. The rules will change. But, we have survived these changes before. The FDCPA shook our foundation but we made the necessary modifications and became a better industry. HIPAA threw medical collectors off balance but we then got our bearings and created better, more secure standards with protected health information (PHI). Adversarial law firms have lambasted our corporations with frivolous suits and we have fought back. The CFPB is attempting to change the racetrack entirely but we will learn the culture and expectations and remain contenders.

For many organizations, the hope is not necessarily to win the race or place in the top three, but to survive the race. Simply staying in the game during the upcoming years might be a level of success in itself. One fact for certain is that keeping your eye on the rabbit, feet on the ground and taking one careful step after another will assure your arrival at the finish line each day, each week and each month into the future. Stay in the race and save the scratching for those nasty itches!

We encourage our readers to submit a “best practice” idea for inclusion in this column. I can be reached at This email address is being protected from spambots. You need JavaScript enabled to view it.. Until next time, I’m in a collection office near you!

Harry A. Strausser III is president of Remit Corporation/Interact Training & Development.