One of the primary issues plaguing the HOA collection agency industry is the perceived lack of differentiation between said agencies and attorneys. This homogeneity can lead to a commoditization of collection services, which in turn poses several challenges for both HOAs and the collection agencies they engage. So the question is: What does Equity Experts offer in terms of service compared to a local attorney?
Defining the Difference
- Industry Standards: Attorneys often adhere to textbook standards and regulations, which can limit their ability to introduce unique approaches to debt recovery. This adherence is essential to maintain legal compliance but may inadvertently lead to a lack of innovation in service offerings.
- Established Methods: Many attorneys rely on tried-and-true methods for debt collection, such as sending letters, making phone calls, and reporting delinquencies to credit bureaus. While effective, these methods are not particularly innovative and can contribute to the confusion.
- Common Software Tools: Collection agencies commonly use software and technology platforms designed to streamline the debt collection process. These tools are not exclusive, but are not as accessible to attorneys, contributing to the lack of differentiation in service delivery.
The Implications for HOAs
The perceived lack of differentiation between collection agencies and attorneys can have several implications for HOAs:
- Difficulty in Selection: HOAs may struggle to choose the right “service” because they are more familiar with the old-school way of doing things. This can lead to a decision-making process based solely on comfortability, which may not always result in the best outcome for the HOA.
- Limited Innovation: HOAs may miss out on innovative debt recovery strategies and approaches that could lead to improved results because attorneys are not encouraged to deviate from the norm.
- Poor Member Relations: The use of uniform, aggressive collection tactics by many attorneys can strain the relationship between HOAs and their members, potentially harming the community’s atmosphere.
Differentiation is evident in industries like the entertainment, fast food, and fashion industries. Though the listed industries are heavily influenced by trends and branding techniques, there is always a core foundation when it comes to a company’s identity outside of branding. Example: Adidas separates itself from its’ rival, Nike by focusing on classic design and sustainability, while Nike focuses on performance and technology. Adidas has partnered with iconic designers over the years to stay true to their ideals even though Nike blows Adidas’ net-value out of the water with a staggering $50 billion to $16 billion. When it comes to choosing which sport wear is best, it’s simply preference, regardless of which brand is more valuable. Now let’s say a new sportswear company had the best of both worlds, making Nike and Adidas look outdated in the eyes of consumers, that’s what Equity Experts is in the eyes of HOA communities and management companies.
The Better Choice
Many attorneys rely on their “textbook” methods to do the job for them rather than developing new collection methods to help debtors get their debts paid. While Equity Experts squeezes every drop of value from its’ services for the sake of its’ partnered communities. Equity Experts covers all grounds by educating debtors on their current situation, establishing a communication method by surveying which form of communication is best for each debtor, creating a personalized payment plan for the debtor, differing the cost of collection back to the community, and more. The difference between Equity Experts way and an attorneys’ way is evident outside of branding, and are highlighted by its’ 98% success rate and 4.5 stars on Google. Innovation works, but it’s hard to recognize as the best solution because it brings change. Though, it’s time for the collection industry to change.