Collecting Past Due Accounts & CFPB Compliance - 2020
Recorded on October 20, 2020 — 2 hours
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In 2019, the CFPB received 75,200 complaints about first-party and third-party debt collection, making collections the second most prevalent topics of consumer complaints the Bureau received last year; and, due to the novel coronavirus and the Bureau’s proposed debt collections rules, you should expect the collections industry to continue undergoing changes in 2021!
In this program, we will look at how the Covid-19 pandemic has altered the regulatory agenda and enforcement actions over the last six (6) months and discuss what future impacts your bank can expect. We will cover Congressional actions that are related to debt collections, and what effects the Presidential Election may have on your collections activities.
Last May, the Consumer Financial Protection Bureau (CFPB) issued a Notice of Proposed Rulemaking (NPRM) relating to debt collection. The rule addressed issues such as communications practices and consumer disclosures. We will take an in-depth look at the NPRM and discuss what effect the NPRM will have on first party creditors. Regardless of the extent to which the new rules impact first party collectors, your bank is still liable for unfair, deceptive or abusive acts and practices (UDAAP); and, until these new rules are issued, however, creditors must rely on prior enforcement actions and various guidance documents to determine what (potentially) qualifies as an unfair or deceptive abusive act or practice (UDAAP); which carry steep penalties —up to $1 million per day for knowingly violating the law.
As required by the Dodd-Frank Act, the CFPB and the Federal Trade Commission (FTC) coordinate their efforts to protect consumers from UDAAP violations. As part of this coordination, the agencies regularly meet to discuss ongoing and upcoming law enforcement, rulemaking, and other activities; share debt collection complaints; cooperate on consumer education efforts in the collections arena; and, consult on debt collection rulemaking and guidance initiatives. By reviewing these joint agency activities, this webinar will provide concrete steps that your bank can take to identify and mitigate UDAAP risks.
In this session, we will examine the CFPB's broad application of its UDAAP authority. Taken together with an exploration of the CFPB's various informal guidance documents addressing debt collection issues, we will determine what constitutes a potential UDAAP violation according to the Bureau. We will also dive into recent verdicts and rulings that affect how your bank handles slow-paying accounts.
This webinar will also address the Federal Deposit Insurance Corporation's (FDIC's) debt collection recommendations for first-party collectors, as well as compliance points related to the Fair Credit Reporting Act (FCRA) and the Fair Debt Collection Practices Act (FDCPA). Reporting charge-offs and Fair and Accurate Credit Transaction Act (FACTA) red flag compliance points will also be covered. Discover the importance of vendor management in the collections arena and how to protect your bank from third-party liability suits. In addition, we will explore protections for servicemembers (including the FTC's February 2018 Staff Perspective, which highlights key takeaways from the CFPB & FTC's "Military Consumer Financial Workshop"), bankruptcy auto-stay provisions, skip-tracing, and much more!
Finally, we will review steps to make successful collections calls & letters, and discuss best practices for effective & compliant scripting. You will learn how to make motivational appeals that compel your debtors to pay-in-full.
This webinar will equip you to implement best practices for collecting past due accounts in 2021.
Overview of Credit & Collections
Collection Letters & Written Communication
Phone Scripts: Calling the Consumer
Who Should Attend:
This informative session will best suit the following personnel:
Questions and Answers