Debt Collection is a highly regulated industry, where debtors and collectors follow the letter of the law. It is in fact a highly litigious one, drawing attention to dry technical terms rather than the intent of a certain rule or another. Compliance with debt collection laws is therefore paramount to any debt collector, and an issue that creditors deeply care about (because they can get in trouble, too!).
At TrueAccord, we analyze laws, follow litigation cases, enforcement actions and bills to make sure we, and our customers, are compliant. Our legal team works diligently to make sure that we know what’s the latest in rule making, and stay compliant and ahead of the curve. Of course, this also works well with our values and why we started the company.
What Are The Major Debt Collection Laws?
This is a non-exhaustive list of the type of rules that govern our actions in debt collection. There are many others, including licensing requirements, that we are required to meet.
- The Fair Debt Collection Practices Act governs debt collection practices at the Federal level (there are others for the state level). The FDCPA defines prohibited and allowed practices in debt collection. It tells us when, how and how often we are allowed to contact consumer debtors, what disclosures need to be made in that communication, and what cannot be done (although we are much more strict than the law).
- The Telephone Consumer Protection Act defines legal practices for making business phone calls. It defines the tools to be used and avoided, how to disclose the purpose of a call, what’s considered consent to being contacted and more.
- The Fair Credit Reporting Act regulates the collection and use of consumer credit information. It governs when and how we can report debtors to credit bureaus and impact their credit score. It also allows dispute of reports under certain circumstances, and how data needs to be handled.
This is just a glimpse into the complex world of debt collection laws and regulation. Our job is to make sure we stay compliant while getting customers to talk to us and settle their debt. You don’t need to worry about compliance – our experts navigate this topic for you, so you can focus on growing your business.