Presentation on theme: "Understanding the Fair Debt Collection Practices Act"— Presentation transcript:
1 Understanding the Fair Debt Collection Practices Act By Michelle Dunn
2 New rules & regulations CFPB plans new rules for debt collectorsAccording to the CFPB debt collectors will include banks collecting on loans
3 The CFPB will focus on 4 areas: Do debt collectors provide required disclosuresDo debt collectors provide accurate informationDo debt collectors have a consumer complaint & resolution processDo debt collectors communicate civilly and honestly with consumers
4 Debts covered by the FDCPA: Personal debtsFamily debtsHousehold debtsPersonal credit cardsAuto loansMedical billsMortgage
5 Who is a debt collector under the FDCPA & CFPB? Any person who uses mail, internet or phone to collect a debtDebt buyersThird party collection agenciesCollection attorneys
6 The Common questions about the FDCPA Can I call a debtor at work?Can I ask someone to give the debtor a message?Can I leave the mini-miranda on voice mail?Can I send the mini-miranda in an or text?
7 Last year 4,162 consumers complained about collectors calling them at work. The law instructs collectors not to call consumers at work if the consumer has stated their employer prohibits such contacts and such contacts may put the employee’s job at risk.
8 The FDCPA requires collectors to: Identify themselves as a debt collectorGive the name & address of the original creditorNotify the consumer of their right to dispute the debtProvide verification of the debtFile a lawsuit in a proper venueCheck time zones before calling debtorsHave written polices in placeHave a compliance plan and a compliance officer to oversee that plan
9 Complaints received by the FTC: 88,190 FDCPA complaints about 3rd party collectors in 200978,925 FDCPA complaints about 3rd party collectors in 2008
10 Tips for following the FDCPA Identify yourself and don’t use a fake nameGive the name and address of the original creditorNotify the consumer of their right to dispute the debtProvide verification of the debtCheck time zones before calling a debtorHave a compliance policy and enforcer
11 Reducing your Risk Training collectors Monitor collectors and test themFire anyone who violates the FDCPARetain a FDCPA attorney in your areaKeep copies of the FDCPA in your officeKnow your state laws on debt collectionKeep records and have policies in place
12 Resources Blog www.Credit-and-Collections.com Federal Trade CommissionFeedback to CFPB about new regulationsThe CFPB’s debt collection examination procedures (Oct 24,2012)
13 Books by Michelle DunnUnderstanding the Fair Debt Collection Practices ActUsing Social Media in Debt CollectionsAnd many more available online and everywhere books are sold.