Think Fresh

Collector, Sep 2008 by Dressen, Tim

Attendees at the 2008 ACA International Convention and Exposition gained new solutions and made new connections.

(ProQuest-CSA LLC: Text stops here in original.)

More than 1,200 credit and collection professionals from across the United States and around the world gathered in Hollywood, Fla., on July 23-26, 2008, as ACA International brought its 69th Annual Convention and Exposition to the beautiful beaches of Florida.

Attendees participated in the ACA Convention for a wide variety of reasons. Many sought to take advantage of numerous educational sessions available in a relatively short time. Some were hoping to make business connections at the various receptions, social events and ACA International Education Foundation Golf Tournament. Others return year after year because they have experienced the long-lasting benefits to their businesses in the past and hope to build on their success.

"We don't always operate in an easy environment," 2007/08 President-Elect Jay Gonsalves, IFCCE, told new convention attendees at the FirstTimers Reception. "So it's important to attend these educational sessions and get to know fellow attendees in order to overcome these challenges and take a lot back to your offices."

Whatever their reasons for attending, ACA Convention participants had many opportunities to expand their knowledge, make new connections and, ultimately, improve their businesses.

The Art of Vision

If a picture paints a thousand words, ACA Convention keynote speaker Erik Wahl can say volumes in just a few minutes. In the time it took to play a recording of the U2 song "Beautiful Day," he painted an incredibly accurate, artistic portrait of U2 singer Bono to begin his Opening General Session presentation, The Art of Vision.

Wahl discussed the importance of creative thinking, unlearning conventional ways of solving problems and avoiding being hampered by fear. These factors made his career as an artist possible.

He also spoke about companies that have found success by hiring for attitude and training for skill. Having employees with an attitude of flexibility allows companies to adapt quickly and build customer or client loyalty.

"The art of vision is couched in the science of freeing your mind and seeing challenges in ways you - and your competitors - never have," Wahl said.

Wahl's artistic talents and inspirational messages amazed attendees - many who immediately expressed interest in the two works of art he painted during the session. Fortunately, they were auctioned off, raising more than $5,000 to benefit the work of the ACA International Education Foundation.

The State of the Economy

Fuel prices are soaring. Home prices are plunging. The subprime mortgage crisis has led to large numbers of foreclosures in some regions. Consumer debt continues to increase.

During his ACA Convention general session, State of the Economy: Consumer Woes and Credit Quality, noted economist Dr. Ken Mayland made several observations about these factors and current economic conditions.

"The rapid rise in fuel prices is a show-stopper for the economy," Mayland said. Unfortunately, he doesn't see any indications that the price of oil will drop. Conservation efforts may decrease demand in the United States, but not enough to surpass the growing demand in China and India. Alternative power choices won't provide any significant relief for years or even decades.

Statistics indicate consumers are pulling the money to cover the rising fuel costs from only two areas -automobiles and savings. According to Mayland, the personal savings rate has dropped from about 3 percent to almost nothing. Unfortunately, this lack of savings leaves many people financially unprepared in the event of an emergency. As consumers see their savings shrinking, many are worried about their future. Their fears may well play a major factor when they vote in November.

Mayland believes the presidential election will come down to two issues: the war in Iraq and a solution for the 50 percent of tax filers earning $31,000 or less. He also foresees a major government expansion of programs, which he compares to President Johnson's 1964 Great Society goals, which sought to eliminate poverty and racial injustice.

While the economic picture remains bleak, Mayland offered hope. Something - expansionary policies, stock prices, exports, housing, autos, political change - will eventually spark a recovery. The United States has experienced a negative economy in the past, and it always recovers. There's no reason to believe this economic downturn will be the exception. For more information from Mayland's session, see page 42.

The State of the Industry

Dr. Ken Mayland's discussion was a perfect lead-in for another general session, in which NCO Financial Systems Executive Vice President of Global Services/COO Steve Leckerman discussed the state of the collection industry.

Leckerman outlined several factors affecting today's collection businesses:

* Delinquency rates are rising.

* Skip/no contact accounts are increasing.