"The results of our poll get to the heart of how consumers feel about debt management today," said Robert Markoff, president of NARCA. "The dominant opinion in the media is that consumers are powerless victims. To the contrary, our data shows that consumers are empowered and taking positive steps to properly manage their finances. Consumers fully recognize the importance of accessing affordable credit - now and in the future - and are working hard to pay back the debts they owe. Our members see this every day as more and more consumers reach out to collection attorneys to set up payment plans."
Though most Americans see themselves as more likely to be contacted by a debt collector now than in previous years, they fully recognize the consequences - both personal and national - of not repaying debt.
Among the poll's key findings were these:
- By a 3-to-1 ratio, consumers say those who borrow and do not pay down their debts are a bigger problem than businesses trying to collect debt.
- Sixty-one percent of consumers say that people should pay what they owe and not try to get businesses to forgive debt.
- Most consumers think that the rules and requirements for getting a loan have gotten more restrictive (77 percent), not looser (5 percent), in the past couple of years.
- Ninety-two percent of consumers say that actively collaborating with the collection industry to resolve their unpaid debts is preferable to filing a lawsuit.
- Sixty-eight percent say that local and state governments would do a better job of protecting consumers rights than would the federal government.
The federal Fair Debt Collections Practices Act (FDCPA) regulates the debt collection industry and is currently under examination by the Federal Trade Commission (FTC). The FTC is embarking on a series of public workshops to evaluate potential reforms that could impact how consumers are able to resolve their debt issues.
"This is a critical time in our nation's economic history and we need to ensure that sound and effective public policies are in place to support Americans who are putting their financial lives back in order," Markoff said. "Above all else, it is critically important that any policy change does not jeopardize consumers' ability to access credit in the future. NARCA proudly considers itself a partner in the recovery process, and through responsible and ethical debt collection practices we will continue to do our part to ensure that credit remains available and affordable."
