Compliance is top of mind for the debt collection industry. Highly regulated at the State and Federal levels, collectors are subject to dozens of laws and regulations that govern every aspect of their operations. A highly litigious culture based on strict liability laws means a constant threat of lawsuits, resulting in shifts in courts’ interpretations of various statutes. To pile on, debt collectors are subject to active enforcement and rulemaking activity and attention by lawmakers, leading to ongoing updates in debt collection laws. What can debt collectors do to get ahead of them curve? At TrueAccord, we know code driven compliance is the answer.
While compliance pressure mounts, the industry hasn’t changed its traditional operating model. Hundreds and thousands of human operators use dialers to continually ring up those in debt. They spend hundreds of hours discussing sensitive issues with customers, and are oen compensated with a commission on debt repayments. This model has survived TCPA rulings, enforcement actions, class actions and dramatically soaring legal and compliance costs. Its combination with a rapidly changing regulatory environment is a challenge that many lenders and collectors are struggling with. Compliance officers at these companies are trying to solve an extremely hard optimization problem: how to design and implement a control structure that effectively detects and mitigates compliance exposure, while optimizing on compliance resource allocation and exposure.
Code driven compliance: a fundamental change in compliance management
In this white paper, we review a code-first approach to compliance. Developed as part of a machine learning-based alternative to debt collection via large call centers, it solves the major pain points the industry is facing with regulators and legal experts. We discuss how this model works for TrueAccord, a machine learning based collection service, and for its clients. If you’d like to learn more about our service, check out our website.
To read more, download the free white paper here.