Collections & Financial Literacy: A Clear Connection

Financial literacy is a cornerstone of long-term financial health, yet many consumers struggle to fully understand their personal finances. In recognition of Financial Literacy Awareness Month this April, it’s important to highlight how even a collection agency can play a valuable role in supporting financial education. By helping consumers gain a clearer understanding of budgeting, debt management, and financial planning, we not only assist them in resolving their current obligations but also empower them to build a more stable financial future.

Introducing TJ Lee, Director of Operations at IC System
TJ Lee serves as the Director of Operations at IC System, where he oversees the daily processes that help connect consumers with practical solutions for resolving debt. With a focus on respectful, solution-oriented service, TJ emphasizes the important link between collections and financial literacy. He views financial education as a key tool that helps consumers better understand their options, manage their budgets, and work toward lasting financial stability. In this article, TJ shares his perspective on how financial literacy supports better outcomes—for both consumers and the collections process.

“I think of debt collections as recoveries of past due accounts,” TJ explains, “and financial literacy as the ability to understand and use financial skills like budgeting and money management. Those two things go hand-in-hand in what we do every day.”

Often, the solution to resolving a past-due account isn’t just about payment—it’s about understanding a consumer’s financial situation and working within their budget. This is where financial literacy becomes more than a concept—it becomes a practical tool for real-life problem solving.

Changing the Narrative Around Collections
Collections has long carried a negative reputation, but TJ believes that’s changing—and that financial literacy is helping to reshape the conversation.

“At IC System, we take the approach of being kind, respectful, and solution-oriented,” he says. “People go through tough times or unplanned situations. We want to be the ones who offer a solution that maybe wasn’t available before.”

One common misunderstanding is that as soon as an account goes to collections, it immediately hits the consumer’s credit report.

“That’s just not true,” TJ shares. “We try to reach the consumer first, explain the situation, and work toward a solution—often before any credit reporting happens.”

Educating Consumers & Supporting Their Journey
Helping consumers resolve their accounts means more than setting a due date—it means educating them on their options and helping them avoid future delinquencies.

“We explain what the bill is for and what their options are,” TJ notes. “We know that unrealistic arrangements create more stress. So, we focus on building a plan that fits their budget and sets them up for success.”

This approach not only resolves the account—it reinforces sound financial behaviors that consumers can apply in the future.

Empowering Through Respect & Transparency
A key component of building financial confidence is trust, and at IC System, that trust starts with transparency.

“Being respectful and transparent is so important. It builds trust with the consumer and holds us accountable,” TJ says. “The days of aggressive bill collectors are over. All of our calls are recorded, and we offer surveys at the end of each call so consumers can give feedback. That helps us keep improving.”

Looking Ahead: A Better Understanding of Collections
As financial literacy becomes a bigger societal priority, TJ sees a shift in how consumers view collections.

“I hope the bad stigma around collection agencies continues to fade,” he says. “Good players in the industry are showing consumers that we’re here to help, not to hurt.”

And the number one principle TJ hopes everyone understands before their first collections experience?

“Don’t avoid your obligations. Ignoring the issue doesn’t make it go away—and it usually creates more stress in the long run. Most agencies, including ours, are willing to work with you toward a solution.”

At IC System, we’re proud to be part of the financial literacy journey—not just during National Financial Literacy Month, but every day. We believe that with compassion, education, and a commitment to doing the right thing, we can help consumers take control of their financial future—one respectful conversation at a time.