The struggle to stay on top of the mound of compliant collection will never cease. It is constantly shifting, often revealing formations that seem to defy reason and frequently impossible to determine its summit. A law firm must meet this challenge with courage and poise to be successful. It is for this reason that this issue’s law firm spotlight is shining on Blitt and Gaines, P.C. Collection Advisor spoke with Blitt and Gaines’ partner, Fred N. Blitt to learn about their start and what they are doing to achieve success.
How did you decide on pursuing the legal profession and the collection area of law?
I received my undergraduate degree in Accounting from the University of Illinois and wanted to pursue an advanced degree. I thought that a law degree was the best option for me as I was initially pursuing a career as a tax and corporate attorney. As for collections, I don’t think anyone really pursues debt collections going into law school. I had a great deal of experience in the area of debt collections as my family had a furniture store that extended credit on the south side of Chicago. I grew up working for that business through law school. I sold furniture; delivered furniture; made collection calls for late payments and actually picked up payments from our customers. Now my dad is retired and opens the mail at my office every day.
When and how did Blitt & Gaines open its doors?
I first worked in public accounting after law school then spent another year as corporate counsel for a large international advertising agency. I always wanted to own my own business, so I simply quit a good situation and asked a friend if I could share office space with him almost 23 years ago. This office was located on the north side of Chicago near Wrigley Field; and believe it or not was above a funeral home! I was doing general practice work like wills, real estate closings and tax returns. I was also doing debt collection work for my family’s furniture store. I began doing more and more collection work for local banks and finance companies. My sister Jan Gaines joined my little firm above the funeral home after a few years. At that point, the vast majority of the work we handled was debt collections. We moved to nicer office space in downtown Chicago and continued to expand. Now we are located in suburban Chicago and have over 100 employees.
How does technology assist you in processing legal cases for collections?
Technology is a huge component of our legal debt collection law practice. In its simplest form, it allows us to accurately monitor our cases. In today’s environment, technology is a huge part of our dedication to compliance. For example, technology is used to monitor collector phone calls for adherence to policies and procedures and training. It is also used to ensure steps are taken to properly review files. A big example of that would be using technology to determine if a consumer/defendant was in the military.
What is the most significant legal mistake agencies new to collections make?
I am confident law firms new to this area of law would underestimate the resources needed for proper compliance.
What are some things your leadership team does to keep your collectors driven and happy?
We are a big believer in the saying that “attitude reflects leadership”! Our management team has a great attitude and we work diligently to infect our collectors with that attitude. For our firm, good collectors are not only those collectors who collect the most money. Compliance is equally important. We regularly evaluate our collectors on their performance and provide them with feedback. The goal is not to “beat up” the collectors for what they did wrong; rather; to “coach up” the collectors in a way to improve performance.
What are the most dangerous pitfalls in legal collections and skip tracing and how do you avoid them?
The most dangerous pitfall today in legal debt collections is making sure your staff is well trained and understands the importance of compliance. Bottom line, if you cannot follow policies and procedures, you cannot work here!
Have you been required to adapt your legal practice due to the growing prominence of the CFPB? How?
Absolutely. Our practice has changed significantly over the past few years due to the regulatory environment. We have staff that is devoted to areas of compliance such as call monitoring, complaint monitoring, and policies and procedures.
What should agencies be doing to prepare for the 2014 collection year in terms of litigation to collect debt?
Debt collection law firms need to continue to work diligently to be able to adhere to enhanced compliance standards. This commitment can be quite costly. In my opinion, the leaders of debt collection law firms need to be aware that their law firm is still a small business. It is imperative that they allocate the resources necessary to comply with client and regulatory policies while finding ways to maintain profitability. That means law firm leadership needs to embrace changes to staff and technology to help the firm in the future.
What do you do with your free time?
The majority of my office is comprised of Chicago Bears fans. We have tailgated at Bears games for years. The tailgates have gotten larger and larger over the years (think 75 people) and so has our tailgate truck. I own a 10-seat tailgate truck that seats 10 people plus all the tailgate supplies. It has a huge sound system with indoor and outdoor TVs. The tailgates are a meeting place for many employees, friends, business associates, clients and local politicians. The menu is also very diverse as we serve items like lamb chops cooked on our trash can grill, jambalaya, and jalapeno cheddar brats.