"I've received numerous calls from credit managers and customers referring to the article, 'Unscrupulous Debt Collectors Inflict Damages on Small Businesses.' I want to give another prospective--the impact unscrupulous debt collectors can have on a company such as ours which is considered an ethically run, professional agency!

"Over the last several months, I've read with frustration articles in Cranes and The Wall Street Journal referring to Diversified Credit Corporation and the antics of debt collector Steven Hoffenberg. This situation has had a direct impact on our corporation--Diversified Credit Service, Inc. We fell victim to Hoffenberg and Diversified Credit Corporation because of the similarity in our names. When articles refer to Diversified Credit Corporation as 'Diversified,' many people who read the article are led to think this unscrupulous company and our company are one and the same.

Editor's Note: This article originally appeared in the Credit & Collection Manager's Letter, which Credit Today purchased in 2006.

"Therefore, not only are corporations that are solicited by the unscrupulous debt collectors impacted, but so are the ethical and professionally run collection agencies. Obviously, this situation has been compounded by the closeness of the two names; but I want everyone to know that there will never be any hint of impropriety in the handling of customers' claims or funds as long as I am president of Diversified Credit Service, Inc.

"My background is as a Fortune 500 credit manager and during the ten years Diversified Credit Service, Inc., has existed, we've not had a hint of legal problems or a question of how we handle customers' checks, let alone complaints or inquiries about unethical practices. We hope there will be no question in anyone's mind about the obvious distinction between two companies with similar names."

Alan N. Butterbaugh, CCE

President

Diversified Credit Service, Inc.

Warrensville Heights, Ohio

Education, Authority, and TQM

"In our industry--exploration and production of natural gas and crude oil--credit departments are typically small, but exposure is high. Many accounts carry multimillion-dollar credit limits, and a 'small' account may carry a six-figure balance. Therefore, the credit professional must be empowered to act quickly, authoritatively, and be able to take action to protect company interests and assets. This empowerment, however, should not be given or taken lightly.

"My company, like many others, offers training, workshops/seminars, continuing education classes, etc. on many topics. Seminars on leadership, negotiation skills, and effective communications have been offered and are worthwhile. However, credit department personnel require additional training as well. They must stay abreast of changes in the industry, financial analysis techniques, local and global economics, legal issues, etc.

"Credit authority is normally delegated from management to those in the department who have authority to make decisions. When credit education/authority is coupled with total quality management programs, an effective credit department is the end result."

Connie A. Turner

Credit Analyst

OXY

Tulsa, Oklahoma

Editor's Note: The above article originally appeared in the Credit & Collection Manager's Letter, a newsletter purchased by Credit Today in 2006. This article originally appeared prior to 2000.