How the Fair Debt Collection Practices Act Works.
The FDCPA does not protect debtors from those who are attempting to collect a personal debt. If you owe money to the local hardware store, for example, and the owner of the store calls you to collect that debt, he is not a debt collector under the terms of this act. FDCPA only applies to third-party debt collectors, such as those who work for a debt collection agency. The law covers credit card debt, medical bills, student loans, mortgages, and other household debt.
The Act prohibits certain types of "abusive and deceptive" conduct when attempting to collect debts including the following:
- Hours for phone contact: contacting consumers by telephone outside of the hours of 8:00 a.m. to 9:00 p.m. local time. Additionally, if certain hours are inconvenient for consumers during the allowable time (those who work at night and sleep during the day) they may not be contacted during those times
- Failure to cease communication upon request: communicating with consumers in any way (other than litigation) after receiving written notice that said consumer wishes no further communication or refuses to pay the alleged debt, with certain exceptions, including advising that collection efforts are being terminated or that the collector intends to file a lawsuit or pursue other remedies where permitted
- Causing a telephone to ring or engaging any person in telephone conversation repeatedly or continuously: with intent to annoy, abuse, or harass any person at the called number.
The Act requires debt collectors to do the following (among other requirements):
- Identify themselves and notify the consumer, in every communication, that the communication is from a debt collector, and in the initial communication that any information obtained will be used to effect collection of the debt
- Give the name and address of the original creditor (company to which the debt was originally payable) upon the consumer's written request made within 30 days of receipt of the §1692g notice
We will be discussing the do's and do'’ts of collections thereby assuring that collectors and collection management teams are best prepared to achieve their goals in safe and sound ways.
Why you should Attend
Collections practices have always been an integral part of financial services. There are many regulations impacting practices, policies and procedures. Consumer advocates, as well as governmental staff are constantly adjusting those regulations, in order to ensure fairness and sensitive treatment of clients. This means that it is imperative that we stay abreast of changes, not only in policies and regulations, but also in the social conscience.
So if you are concerned about what can and cannot be done when trying to collect moneys owed this webinar is for you. If you are planning on changing processes, policies or procedures or simply require just an update about the temperature of collection activity today, then you should plan on attending this webinar.
Areas Covered in the Session
- Collections Regulations
- Application of regulation to process
- MIS and Reporting
- Best Practices
- The Do's and Don'ts of Collecting Debts
- Best Ways to deal with Customer Complaints
Who Will Benefit
- Risk Managers
- Directors of Internal Audit
- Enterprise Risk Managers and Staff
- Quality control staff
- Compliance Officers
- Operations Leaders
- Operational Risk Leaders
- Business Executives
- Collections Staff and Management
Daniel A Clark has over 30 years experience in the financial industry. 19 of that in Risk Management and Internal Audit where he established risk based internal audit processes. He is an active speaker and contributor to industry conferences, publications and think tanks. His book, Dare to Be Different, An Auditors Personal guide to Excellence has been well received in the industry.
Dan has been a CAE for international banks, regional banks and was Director of Operations for Internal Audit at GE Capital. He now is providing Audit and Risk Advisory Services to various sectors of the market place.