The FDCPA Proposal – Why you Can’t Ignore it! - August 13, 2019With Andy Zavonia and John Burnett
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For starters, the Fair Debt Collection Practices Act as we know it today doesn’t apply to your bank when collecting its own debts. But we’ll tell you why, as a practical matter, that will change under the CFPB’s proposed rule. Yes, the Bureau planned on this rule and another applicable to first person collectors, like your bank. Yes, it’s dismissed the second version (at least for now), but there is adequate language in the proposed rule that will apply to first person collectors indirectly, under UDAAP. At the end of the day, you will need to understand this FDCPA regulation as it gets approved.
The Fair Debt Collections Practices Act was enacted in 1978. The 530 plus page proposal published in the Federal Register on May 21, 2019, is the first substantive modification to update the application of this antiquated law. That sounds like its time has come, but recognize that the CFPB sees debt collection as its number one complaint issue based on the volume of complaints from 2015 to 2018. And the proposal is not intended to make life easier to collect money owed to your bank.
The purpose of this webinar is to familiarize you with the proposed rules. History tells us this will be the final rule but with a few tweaks based on comment letters. That’s another purpose for our presentation -- does your bank want to comment? – you need to know what impact this will have to make that decision. And lastly, when the rule is finalized, your implementation process will be much easier being more familiar with not just the revised law, but the spirit and intent of what it is meant to accomplish.
During the webinar, we will discuss:
- Limitations on call attempts,
- How this can impact your bank when there are multiple debts owed,
- Clarity on the use of today’s technology for debtor contacts,
- Voicemail, text messages and emails are key,
- Required disclosures so debtors know what is being collected and options available,
- Many complaints and lawsuits involve erroneous amounts owed and the ability to even collect the debt,
- Required disclosures to report debts to the credit bureau by a collector,
- What a bank needs to do prior to assigning a debt to a third party,
- And so much more.
WHO SHOULD ATTEND:
Compliance, audit, lenders and collectors including those pursuing overdrafts, safe deposit box fees, and any other debts to the bank.
John Burnett is a 1979 alumnus of the ABA National Compliance School, and served on its faculty for several years. He graduated with honors with the Class of 1990 from ABA's Stonier Graduate School of Banking, and is also a graduate of the BAIs and the Massachusetts Banker Associations Schools of Banking.
John began his banking career in high school when he started as a teller at a $15 million bank that didn't have account numbers for its checking accounts (he says they actually filed by signature!) He joined Cape Cod Bank and Trust Company in 1971 and assumed the position of Compliance Officer in 1976. He also served as corporate secretary and secretary of CCBT's Board of Directors, as well as Clerk of the bank's holding company.
John joined Glia Group, Inc. and the BankersOnline.com team in June, 2004. He is a frequent presenter of BOL Learning Connect webinars, and at BOL Conferences events.
He was a member of the Massachusetts Bankers Association Legal and Regulatory Compliance Committee, and a former member of the American Bankers Association Compliance Executive Committee and NCS/NGCS Advisory Board. He served on ABA's Truth in Savings Task Force as Regulation DD was being written, and has served on several ABA and Massachusetts Bankers seminar panels.
Mr. Andy Zavoina, CRCM, is an Executive Vice President with the Glia Group, Inc., best known for its involvement with BankersOnline.com. He joined Glia and BOL in 2003.
Mr. Zavoina has been in finance and banking for 35 years. Over 20 years were with a two-bank holding company that had $534 million in assets, 89 branches spanning Texas and nearly 500 ATMs. He has done loan workouts, has been a consumer, commercial and real estate lender and managed those departments, as well as being his banks first Webmaster. He was responsible for compliance -management, -auditing, and -training for both banks.
Mr. Zavoina is a recipient of the American Bankers Association’s Distinguished Service Award for his involvement and accomplishments in the field of regulatory compliance management. He is a past Chairman of the ABA’s Compliance Executive Committee, the Editorial Advisory Board for the ABA Compliance Magazine and served as a member of the ABA’s Compliance School Board. He is a BankersOnline Guru. He also served on the Texas Bankers Association's Compliance Committee.
He is a graduate of the ABA National Commercial Lending School, National Compliance and National Graduate Compliance School and is a Certified Regulatory Compliance Manager with the Institute of Certified Bankers. He has written articles and lectured on compliance, the use of the internet and technology as a tool, as well as compliance in cyberspace to local, state and national associations across the U.S. and teaches basic compliance and compliance management.