To a large degree, events and trends that happen outside the accounts receivable management industry shape what happens inside the industry. What trends, milestones, hazards, and circumstances will determine the path of the ARM industry in 2022? AccountsRecovery.net asked veterans from across the country to share their predictions for the events and trends that will ultimately determine whether 2022 is a good year for the industry or not. Here is what they said.
Michael Lamm, Corporate Advisory Solutions
What a roller coaster ride of a year! Between Covid-19/variants, remote working, labor shortages, M&A activity and the implementation of Reg. F, our industry has seen a lot of change. I am always amazed by how ARM industry participants are able to quickly adapt to changing economic and business conditions. Going into the New Year, I am excited about how technology will positively impact company’s operational and financial performance and drive an increase in profitability. With all that said, I am concerned that we will see an uptick in lawsuits by consumer attorneys who see Reg. F as a feeding ground for easy settlements.
Additionally, with the recent news that came out about the student loan moratorium being extended, I am hopeful that the Q1 21 tax season will see better liquidation performance as a result of student loan borrowers having more cash available to pay down outstanding debt. M&A activity will continue to be alive and well in the industry (expect more consolidation by large industry players), especially if the anticipated capital gains rate changes continue to stall out in Congress. Overall, I am bullish on next year and confident that our industry will continue to “adapt”, as they always do, to new opportunities and challenges that come our way!
David Reid, RMA International
At the state level, I expect 2022 will look a lot like the prior year. In 2021, we saw a four-fold increase in laws adopted impacting the receivables management industry compared to pre-pandemic years. This trend will likely continue with the hot legislative and regulatory issues focusing on consumer communication requirements, consumer privacy, wage and bank garnishment, and bills related to medical debt. However, the good news is if the industry can maintain the same level of advocacy as we did in 2021, our collective voices will be heard, resulting in amendments that will produce more reasonable statutory and regulatory requirements.
Harry Strausser, Applied Innovation
I believe 2022 is aptly defined as the “Catch 22” year. Many operators are feeling no matter which direction they turn challenges await them.
It will be the year of business alignment With the impending deadline for Reg F on November 30, 2021 operators started assessing all of their technologies (or lack thereof) and in many cases have replaced their legacy collection platforms.
Leveraging technology will be the mantra and successful firms will provide an array of opportunities for consumers to be more self-serving. Creative technological use will propel the industry through the next decade. Those organizations not willing to think outside the box cannot survive the ARM industry’s progressive movement.
Kelsi Hamilton, Dynamic Collectors
Our industry will continue to be shaped by technology and legislation. I think in 2022 specifically, after Regulation F implementation, it will likely also be shaped by court cases.
