Debt Collectors Move To Improve Their Image
Sydney Morning Herald
Wednesday September 16, 1987
Debt collectors, like parking officers and tax clerks, do not exactly enjoy popularity within the community.
The recent US film Repo Man did nothing to improve their image as the bully boys of a society that likes to spend money. But the Institute of Mercantile Agents is conducting a campaign to lift the image of its members.
Convincing consumers that debt collection is necessary is one of the unenviable tasks of Mr Norm Owens, the new national president of the institute and managing director of Accelerated Computer Collections, at Carlingford.
Mr Owens said that repossession was only part of a debt collector's job, albeit one of the most difficult.
"Some people would rather give you their right arm than their car," he said. "About five per cent of jobs require a certain amount of confrontation, but debt collectors see their role as mediators between creditors and debtors rather than aggressors."
A substantial part of a collector's work is to counsel people in debt and show them different ways of repaying debts. Collectors also advise businesses when accounts should be written off.
"Credit is a two-edged sword," Mr Owens said. "Used judiciously it can be a marvellous tool, but used carelessly it can bring misery.
"Some people say retail stores and credit companies should not give such a high degree of credit and that some consumers are finding they have to sell their souls for the rest of their lives to pay back their debts.
"But what do you do with those consumers? If you deny them credit you will have civil rights groups saying you are discriminating.
"Most stores try to balance creating sales from credit with the ability of the clients to pay it back.
"But people have to be responsible for the risks they take. There isn't enough being done in our education system to teach people about credit before they go out into society."
The Institute of Mercantile Agents, an umbrella association for debt collectors, process servers, repossession agents and private investigators, does not tolerate irresponsible or unscrupulous agents.
The Commercial and Private Inquiry Act was amended early this year to ensure that mercantile agents behaved ethically, Mr Owens said.
People wanting to become a commercial or private inquiry agent, from July 20 this year, must undertake a 12-month part-time TAFE college course. Subjects include law studies, accounting, business communication and surveillance.
To be granted a private or commercial inquiry agents' licence, the applicant must have practical experience with an approved company and take out a $20,000 indemnity premium.
There are about 6,000 licensed commercial and private inquiry agents throughout Australia.
© 1987 Sydney Morning Herald