President's Message
By: Stuart Blatt

• FINANCIAL REGULATORY REFORM BILL PASSES:
  U.S. Senate passes and President Obama signs into law: the Financial Reform Bill.
• DBA INTERNATIONAL SEARCHES FOR NEW EXECUTIVE DIRECTOR
  Executive Director Knauf tenders his resignation.
• DBA MOVES IT’S LONG RUNNING ANNUAL CONFERENCE AT THE MIRAGE TO ARIA - COMMENCING IN 2012.
• DBA EXECUTIVE RETREAT APPROACHING
  IN AUGUST, 2010
  

This year continues to be a year where DBA focuses both on industry and association challenges. Let me start by mentioning the New Financial Reform Law.

FINANCIAL REGULATORY REFORM

The newly signed legislation is a congressional attempt to cure problems that resulted from the 2008 financial crisis. While the law attempts to provide greater transparency and accountability for Wall Street, it has unintended consequences for the financial services industry.

An already over-regulated industry is going to be burdened by a law: a) that is so complex that its real clarity will not be gleaned until after regulations are passed that will implement provisions within the law, and b) by a provision that creates the Consumer Financial Protection Bureau (CFPB) which will have rule-making authority.

President Obama will now create a ten member Financial Stability Oversight Council to monitor the financial system to be chaired by the treasury secretary. The CFPB will be headed by a director appointed by the President. Considered for that position are reportedly: Elizabeth Warren who now heads the Congressional Oversight Panel, assistant treasury secretary Michael Barr and deputy assistant attorney general Eugene Kimmelman.

While the credit and collection industry did not cause the events that led to the financial crisis of 2008, DBA and the industry must stay on the alert to monitor any key changes or rule implementations that will adversely affect members.

DBA will continually keep you alerted to events as they become apparent. DBA is committed to helping you understand the myriad of challenges that will occur post-passage. I encourage each of you to attend the DBA Executive Retreat to learn more and read the DBA Quarterly Legislative Insider, emailed on July 27, 2010 and prepared by our Legislative Counsel, Bob Belair and our General Counsel, Barbara A. Sinsley. A copy may be obtained by contacting the DBA International headquarters.

DBA INTERNATIONAL BEGINS SEARCH FOR
NEW EXECUTIVE DIRECTOR

On June 29, 2010, the DBA Board of Directors received a letter of resignation from Executive Director, Roger Knauf. In his letter, Roger expressed his interest of returning to the industry as an investor in a debt buying entity. He offered his sincere interest and commitment to ensuring a smooth transition with any chosen successor.

We at DBA will all miss Roger as he departs from his position as Executive Director. Roger distinguished himself by serving as DBA President and then after the departure of our last executive director, Dennis Hammond, Roger stepped-up and became the Executive Director of DBA. His foresight, leadership, administrative and leadership skills served us well and on behalf of the Board of Directors, I heartily thank him for his service to the association.

In closing, it is not an end but another beginning for Roger and we look forward to his continued involvement with DBA as he pursues his new debt buying opportunities.

DBA ANNUAL CONFERENCE MOVES TO ARIA

After a “long run” at the Mirage, the DBA board, in 2009, authorized its management association, AMG, and Executive Director, to solicit other properties within Las Vegas to host our annual conference in the future. After considering an array of properties and the value they represent, the Board selected the ARIA in City Center.

The ARIA is a newer property with state of the art conference technology that provides a corporate, rather than a standard “vegas” hotel image. We know you will be impressed with our first 2012 annual conference at the site.

DBA EXECUTIVE RETREAT - AUGUST 16-18, 2010

Please join us at the Executive Retreat, being held at the Graves 601 hotel in Minneapolis, MN. This event will launch a discussion of recently enacted federal financial regulatory reform legislation and its impact on the credit and collection industry. Learn first hand and ask any questions you may have from our leading presenters. At the same time, enjoy the comradery of meeting with other attendees, enjoying the planned educational and social events and engaging in a meaningful discussion of industry issues.

Let me close by advising you that I have appointed an Executive Search Committee consisting of DBA Board Members Kaye Dreifuerst, Stacey Schacter, David Paris and Chaired by Vice President Mike Bendickson to conduct a search for a new executive director.

I would like to extend to all of you our DBA wishes for a happy and enjoyable summer with friends and family.

back to top

Farewell and Thank You from Executive Director, Roger Knauf

Fellow Colleagues,

As you may have heard by now, I have elected to leave my position as Executive Director of DBA International in order to pursue other business opportunities. I will remain on board until a successor is selected and I will provide continued assistance wherever needed and whenever asked in order to ensure a smooth transition. You should know that I am proud to have served as your Executive Director these last three years.

My relationship with the DBA is long – I spent 10 years as a board member and president before becoming Executive Director – and I have seen a great deal of change in our industry and organization. Of all the things that have improved, the most important – and most welcome – change has been the increased level of activity by members in our industry’s business. It wasn’t that long ago, our profile in Washington, D.C. was razor thin. Nobody in official Washington – not the legislators, not their staffs, nor the industry regulators at the FTC – knew much about debt buyers or the value we provide to creditors and consumers. The little they did know came from groups that are hostile to our industry.

We were even strangers to some of the people who should have been our natural allies – the consultants, reporters and other industry related trade groups who were involved in other segments of the debt buying and collection industry.

Today, we are a respected voice for the debt buying industry with State Attorneys General, on Capitol Hill and in state legislatures. This is particularly evident in our legislative activities. (Figures on fly ins, etc.) Our members have been generous as well, contributing upwards of $1 million to our legislative fund and campaign contributions to legislators and other elected officials who support our positions.

Beyond our relationships with those outside the debt buying family, we enjoy a stronger relationship amongst ourselves. The annual conference has seen steady growth in attendance – even through tough economic times – and significant improvements in the quality of the content presented there. It has become THE marquee event, a place for debt buyers to network, build their businesses and discuss the most important issues facing our industry.

They say a team is only as successful as the players surrounding it. Well, I have been extremely fortunate to have a tremendous roster of players on the DBA team. We owe a debt of gratitude to Bob Belair and his team at Oldaker, Belair & Wittie and our General Counsel Barb Sinsley for their sound legislative and regulatory guidance. Ryan Wall, DBA Associate Executive Director, has kept a steady hand on the tiller while ensuring we continue to deliver on the DBA strategic plan and every one of our priorities. In addition to outstanding staff, I have also been fortunate to work with strong Board Members and outside vendors who give so generously of their time and talents. It has been remarkable watching our association grow and strengthen its membership base over the years.

Looking ahead, our organization still has much to accomplish, particularly in several states where legislators continue to introduce bills that would place a heavy burden on our activities and significantly curb our ability to do business. As this wave of potential legislation continues to break, our next Executive Director has his or her work cut out for them.

While intelligent and energetic leadership is central to the future success of DBA, it’s member involvement that gives us muscle. Whether you participate in a legislative meeting or simply attend our annual conference, your support and involvement makes DBA a better organization.

I encourage you to continue to fight the fight and to support the future efforts of DBA and its leadership. You can count on me to be with you every step of the way !

My best regards,

Roger Knauf

back to top

*New Section* - Economic Outlook

By Jeff Thredgold – July 2010

The Future Of Jobs In America

Job creation has been substandard during the past six months, with seemingly not much improvement ahead.  The following is an update of where we stand at this point.

Business owners and managers of any size company see a number of major impediments to new hiring over the next few years…

1) Higher and higher health care costs for their employees, with more and more complex and costly government mandates to come.  Almost weekly, new and higher estimates of the costs of Obamacare to the business sector are released, either by various government departments or via private sector studies. 

2) Potential “cap & trade” legislation to boost business costs.  This is one more issue to keep managers awake at night.  The good news here is that a weakened Administration and Congress are unlikely to move quickly in this area.  At the same time, however, talk of a Democratic “surprise” to pass new onerous “cap & trade” legislation, as well as other items in December—between the November 2 election day and the date new members of Congress take office in early January—continues to rise.  This could be particularly likely if Republicans regain control of the House of Representatives or the Senate, or both, in early November

3) Employers see sharply higher taxes on the horizon, one more impediment to new job creation.  Successful employers see higher income tax rates coming, higher dividend tax rates coming, higher capital gains tax rates coming, and a variety of new taxes on investment income.  Why bother to knock yourself out?

4) Many states and local communities are imposing or will impose greater costs on local businesses as a means of generating greater “fee” income to help offset declines in sales taxes, property taxes, and income taxes.  Many already high-cost states will simply drive their most valued businesses across state borders to more “business friendly” environs

My simple definition of economics is “people respond to incentives.”  The disincentives to add jobs in this country remain formidable

Still Gaining
The estimated net worth of the American household rose again during the first quarter of this year.  This marks the fourth quarter in a row that total household wealth increased…following seven consecutive quarters of declines. Total household net worth now stands at $54.6 trillion, an increase of $1.1 trillion ($1,100,000,000,000) versus the prior quarter’s $53.5 trillion total.

Net worth is derived from the Federal Reserve’s quarterly flow of funds report.  The total represents the difference between all household assets, including stocks, mutual funds, real estate, CDs, etc., minus all debts, including home mortgages, consumer debt, bank loans, etc

Household net worth for the second quarter (to be released in September) will be negatively impacted by the poor performance of the stock market during the April to June period.

Real estate owned by American households declined in value by 0.4% during the first quarter, shaving $65 billion from total net worth.  Household real-estate holdings had been gaining in value during the previous three quarters and had added $888 billion to net worth before the first quarter decline.

In addition, households reduced total debt at a 2.9% annual rate during the first quarter, with reductions in both mortgage debt and consumer credit.  Consumers have been aggressive, where possible, in paying down debt during the past few years in response to serious recession, painful job cuts, and higher levels of anxiety.

The rise in net worth is a positive sign and will likely be followed by more gains in coming quarters as the housing and stock markets rebound.  Still, the $54.6 trillion total is 17% below the peak of $65.9 trillion during 2007’s second quarter, just before the Great Recession hit.  It may take “awhile” to get back to that level.

back to top

Don't Miss Rep. Erik Paulsen (R-MN) and FTC's Joel Winston at the Executive Retreat!

There are over 80 industry leaders registered for the Executive Retreat in Minneapolis.  Standard and Professional DBA members are invited to attend. 

Rep. Erik Paulsen (R-MN) is the keynote speaker and following his opening session will be Joel Winston, Associate Director of Financial Practices Division at the Federal Trade Commission (FTC).  Mr. Winston will enlighten attendees about how the new Consumer Financial Protection Bureau (CFPB) will affect FTC enforcement policies.  During the National Legislative Update session DBA’s Legislative Task Force will provide a thorough analysis of how the new CFPB will affect your business and the industry as a whole.  In an unprecedented legislative climate it is very important that you stay up-to-date on everything happening in Washington, D.C.  These are just a few highlights from the many critical sessions we have scheduled. Click Here for the Full Agenda.

This event will also provide networking opportunities through the following events:

• Golf Outing at Troy Burne Golf Club
• Dinner Cruise aboard a luxurious yacht on the Mississippi River
• Tailgate Party at Murray’s Steakhouse & Minnesota Twins Game at the brand new stadium, Target Field

Click Here for the retreat website for details on all these events and to register today!

back to top

The DBA Legislative Fund Needs Your Help!

The Legislative Fund of DBA International is continuing to seek donations to support the work of the Legislative Committee.

The current legislative firestorm may cripple our industry with regard to statute of limitations and stringent requirements to litigate. In addition, the FTC has indicated its intent to redesign major regulation of our industry.

To protect our investments, our businesses and our future livelihood, we must support the work of this Committee.

Please make your donation today by clicking here.

Mike Bendickson
DBA Vice President
Chair of Legislative Fund Raising Committee

back to top

2011 Annual Conference

The 2011 Annual Conference Exhibit Hall is over 46% Sold Out!

Come be a part of what is sure to be the highest attended DBA Annual Conference ever! The 2011 Annual Conference will have the largest exhibit hall in DBA history and 1400+ attendees.

It is not too early to be thinking about the best industry conference of the year.  It’s only 6 months away!  Reserve your Exhibit Booth today!  Click Here for all exhibit information.

Sponsorships are another great way to get your company more exposure!  Click Here for sponsorships information.

Below are some links to help you recap the 2010 Annual Conference:

Click Here for the 2010 Attendee List.

Click Here for the 2010 Photo Gallery.

We look forward to seeing you in February 2011 at the last conference in The Mirage.  In 2012, DBA is moving to the Aria! 

back to top