Debt Collection and the CFPB

By on January 14th, 2016 in Compliance, Industry Insights
CFPB

Are you a member of the California Bar, or just interested in ethics in debt collection? Join and hear a talk by our General Counsel, Avital Gertner-Samet.

Date and Time: January 21, 2016, 11:45 a.m. to 1:00 p.m.

Committee secretary Avital Samet, General Counsel at TrueAccord, will lead the presentation covering potential ethical conflicts to be aware of and avoid while practicing debt collection law. The attorney’s loyalty and confidentiality duties to his client will be juxtaposed against the attorney’s duty as an officer of the court and duties owed to the consumer. These aspects are relevant both to third party and first party debt collectors as well as to counsels that advise to creditors and consumers alike.  She will be joined by Matt Loker (Kazerouni Law Group, APC) and Jeffrey Ehrlich (Consumer Financial Protection Bureau). 

To attend, please use the following dial-in number at 11:45 a.m.

Dial-in: (855) 520-7605

Passcode: 908 506 2381

The dispute process isn’t working for consumers – this is how we solve it

By on December 21st, 2015 in Compliance, Industry Insights

TrueAccord has been refining the debt dispute process since our inception in 2013. Offering digital disputes streamlines the conversation between consumers and collectors while also reducing compliance risk. Engagement of consumers in debt-related discussions have decreased complaints quickly leading conversations into debt resolution.

Read the excerpt and download the whitepaper for free.

Consumers who owe debts are often confused, angry and scared – sometimes unaware of the full details of what they owe and to whom. Though the FDCPA was written to protect the average American consumer, aspects of it, including the mini Miranda and debt validation notice are written in formal legalese. As a result, consumers filing a formal debt dispute tend to skip over reading the information or misunderstand the language, leading them to miss remedies immediately available to them. For example, consumers often miss the allotted 30-day dispute window after the initial communication, during which time they can dispute the debt, while asking for additional verification.

Three reasons your collection compliance officer will love machine learning based collections

By on December 8th, 2015 in Compliance, Industry Insights

We’ve discussed the advantages of machine learning based collections before, that’s because cost to collect drops significantly, the system’s flexibility allows more thorough and diligent handling of accounts, and—when done well—is better at liquidation than a call center. These systems have another advantage: they inherently provide better collection compliance than call centers. Why?
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CFPB enforcement paints a new world in data requirements: don’t be caught unprepared

By on October 12th, 2015 in Compliance, Industry Insights
CFPB

On September 9th the CFPB released consent orders for Encore Capital Group of San Diego, CA and Portfolio Recovery Associates (PRA) of Norfolk, VA following an investigation uncovering their attempts to collect debt that they knew or should have suspected were invalid. Hitting the US’s two largest debt buyers and collectors with a combined settlement of $72 million in refunds and penalties (as well as the inability to collect on an additional $128 million in debt) for using deceptive tactics, sends a clear message about best practices surrounding debt substantiation in the collections industry.

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The FDCPA dispute process isn’t working – here’s how to fix it

By on September 24th, 2015 in Compliance, Industry Insights

TrueAccord has been refining the debt dispute process since our inception in 2013. We’ve found that offering digital disputes streamlines the conversation between consumers and collectors while also reducing compliance risk. By encouraging consumers to stay engaged during the collections process, we’re creating an opportunity to discuss debt-related concerns. As a result, complaints decrease, leading conversations to move quickly into debt resolution.

Read the following excerpt and download the entire whitepaper for free.

The dispute process is as opaque to the collector as it is to the consumer. While respecting the 30-day window and not pressuring consumers to pay while the debt is in dispute, a collector is never quite sure whether a dispute is en route via the postal system. This leaves a long period – days and often weeks –in which the consumer knows that a dispute is “in the mail”– but the collector is still lawfully able to contact them. This creates an ambiguous situation that often leads to consumer complaints.

Debt Collection is Dead, Long Live Debt Collection!

By on August 8th, 2015 in Compliance

A gloom hangs over the debt collection industry. Between the recent FCC ruling and the decline of postal mail, there’s talk on the internet about the death of the debt collection industry, or at least its most popular tools. Now with the upcoming FTC-sponsored Debt Dialogue, the industry is preparing to get before regulators to discuss how business is being stifled amongst mounting costs and regulations. Sometimes we feel like an outdated robocall (*zing*) when we say that there’s a better way.
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Recap of ACA International Convention

By on July 30th, 2015 in Compliance
boston

Earlier last week, I, along with TrueAccord’s CEO, Ohad Samet and general counsel, Avital Samet, attended the Association of Collections and Credit Professionals International (ACA) convention in Boston. Even though it was my third time attending the ACA convention; it was my first time attending as Head of Business Development for TrueAccord.

If you work in debt collection, attending the ACA conference is worth it. In addition to informative panels and the exhibit hall, there are a ton of networking opportunities. The collections industry is based on relationships and it is only through hallway conversations and drinks at end of day receptions that these relationships can be built.
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The FCC is Saying: Give Consumers Communication Choices

By on July 24th, 2015 in Compliance
TrueAccord Blog

Choice is inherent in the way we, as 21st century consumers, interact with our world. The choice to eat whatever we want. The choice to take whatever form of transportation we like. The choice to marry whomever we wish. The concept of choice in debt collection isn’t revolutionary; debt collection has always been linked to the consumer experience. Yet, recent crack downs on bad actors in the debt collection space by the CFPB, as well as the July 10th ruling from the FCC feels like an affirmation of how TrueAccord approaches debt collection.
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CFPB Gets Tough on Debt Sales with a JPMorgan Chase Settlement

By on July 9th, 2015 in Compliance
CFPB

It’s taking a herculean effort to not title this, “We told you so.” Just a few months after our CEO, Ohad’s, Op-Ed about debt buying practices got strong responses from the industry, JPMorgan Chase & Co. is currently in trouble with the Consumer Financial Protection Bureau to the tune of at least $136 million. The reason? Problematic data management and debt sales practices.

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Debt collectors need the CFPB’s kick in the pants

By on June 2nd, 2015 in Compliance
CFPB

“Debt sales are broken. Brokers, buyers and sellers offer books of debt that may be double- or triple-sold, lack documentation, or even be illegally originated.

Some tertiary and junk debt buyers, also known as shifty “paper boys,” are guilty of these violations. But leading financial institutions are also implicated in the Consumer Financial Protection Bureau’s recent reports on debt sales and collection.”

This is how our opinion piece on American Banker starts. Interested? Read more here.