Industry News: CFPB Report Outlines Debt Collection Violations
A recent report from the Consumer Financial Protection Bureau (CFPB) includes a focus on violations in the debt collection industry. This report serves as a reminder for creditors and for collection agencies that it is simply impossible to remain competitive at the present moment if appropriate attention is not paid to issues of compliance.
As passed along by ACA International, the report outlines the following practices as violations of the FDCPA and other laws and regulations:
- Unlawful imposition of convenience fees
- False threats of litigation
- Prohibited disclosures to third parties
This list raises important questions for collection agencies and creditors alike. What is your collection agency doing in terms of quality assurance? Do they allow their clients to listen to recorded phone calls and monitor conversations with their consumers? How do they document and address complaints? Do their collection floor supervisors actively monitor calls? Are recorded calls reviewed with collectors?
If an agency cannot answer those questions and does not have documented processes to account for regulations and laws, then they are putting themselves and their clients at risk to be one of the bullet points on the next CFPB report.