Aron Tomko wants to be guy who wants to make it easier for new participants to start up an collection agency or debt buying operation.
Tomko, who runs Bayview Solutions, LLC, is starting a mentoring program that aims to help inform and educate individuals about how to establish a collection agency or debt-buying operation. His first project is a free kick-off call tomorrow that will share highlights of the program and answer questions about the industry. More information about the program is available here.
Starting a collection agency or becoming a debt buyer can be a daunting decision. The increased compliance burden, coupled with the difficult tasks of finding clients and setting up a merchant account can make the barrier to entry too high for some.
“I feel like regulation has shut the doors to new people entering the space,” Tomko said. “I want to be able to provide people with a place where they know they can go for guidance and mentorship without an ulterior motive. If I can coach them in the right direction and present them from making every mistake I’ve made, then our industry has a better chance of thriving.”
There can be a reluctance on the part of some in the industry to share information because they don’t want to give away their “secret sauce,” Tomko said. He said he is looking at it from the perspective of possibly training someone who will become a partner.
“Regulation is scary and intimidating,” Tomko said. “If I had someone to help me, I wouldn’t have had the FTC knocking on my door. That was a wake-up call.”
Along with coaching individuals who are looking to start new agencies, Tomko is planning on rolling out a series of products and services for not just companies in the mentoring program, but any collection agency or debt buyer. Among those programs will be a product that will provide state-specific letters to companies, a product that helps craft policies and procedures, and a product to help score portfolios for collectability.
“I feel that attitude is 90% of this business,” he said. “If you feel hopeful, you’re going to be be hopeful. If you feel like your business is going to explode, then it’s going to explode.”