I was reading an article the other day that was completely analogous to what’s been going on in the debt settlement industry. It was an article over at The Cranky Flier in which the US Airways Chairman and CEO made an honest and candid statement.
When asked about the new FAA regulations that imposed severe penalties against airlines for tarmac delays he said:
There absolutely will be cancellations that won’t be canceled otherwise. I don’t want to sound like we’re complaining, like some other airlines out there. Fact is, we [the industry] got ourselves in this mess. Fortunately it wasn’t us [US Airways] but in some of these siutations, maybe we’re just fortunate.
This has been going on for awhile and we’ve been warned that we needed to get it fixed so shame on us. If you don’t fix it you’ll get legislation. The legislation is not going to be perfect and there will be unintended consequences, but we just have to deal with it.
More than likely, it’ll be preemptive – we’ll start canceling flights. $27,500 per passenger is a little more than each passenger pays.
The really bad part of this legislation is that when you look at these events, almost every one of them landed somewhere – diversion or something. Let’s have fines for that, but let’s not have fines for people trying to get out of airports, but that’s the problem we’ve now created.
We’re going to have airplanes never depart that should depart and that’s unfortunate. But again, we did it to ourselves.
And if the debt settlement industry thinks they can lobby their way out of rising populist outrage, they would be wrong. Just like the regulation that grew out of airlines not able to do the right thing and not leave people stranded for hours on the tarmac, the debt settlement industry never did the right thing by reining in bad actors and getting behind fair and reasonable fees.
Ladies and gentlemen, take a cue from Doug Parker at US Airways and realize, your current troubles are not the result of other people doing something to you, you did it to yourselves.