With the massive amount of layoffs occurring during the present pandemic — the Federal Reserve estimates unemployment could reach 32% nationwide — debt collectors are going to need to make hard choices over the next few months. Our industry should consider whether continuing collections is both a positive moral and a positive business decision, particularly in regard to using aggressive collection methods.
The morality stems from the fact that many debtors with charge-off debt in collections are likely to have lost their jobs, making it much more difficult to pay for basic necessities despite government assistance. Kicking debtors while they are down and forcing them to pay during times when they can barely afford food and rent may not be a good moral choice. It would also put debt industry employees in difficult positions regarding work ethics and could lead to losing good collectors.