Presentation on theme: "Understanding the Fair Debt Collection Practices Act By Michelle Dunn www.MichelleDunn.com."— Presentation transcript:
Understanding the Fair Debt Collection Practices Act By Michelle Dunn
New rules & regulations CFPB plans new rules for debt collectors According to the CFPB debt collectors will include banks collecting on loans
The CFPB will focus on 4 areas: Do debt collectors provide required disclosures Do debt collectors provide accurate information Do debt collectors have a consumer complaint & resolution process Do debt collectors communicate civilly and honestly with consumers
Debts covered by the FDCPA: Personal debts Family debts Household debts Personal credit cards Auto loans Medical bills Mortgage
Who is a debt collector under the FDCPA & CFPB? Any person who uses mail, internet or phone to collect a debt Debt buyers Third party collection agencies Collection attorneys
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?
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.
The FDCPA requires collectors to: Identify themselves as a debt collector Give the name & address of the original creditor Notify the consumer of their right to dispute the debt Provide verification of the debt File a lawsuit in a proper venue Check time zones before calling debtors Have written polices in place Have a compliance plan and a compliance officer to oversee that plan
Complaints received by the FTC: 88,190 FDCPA complaints about 3 rd party collectors in ,925 FDCPA complaints about 3 rd party collectors in 2008
Tips for following the FDCPA Identify yourself and don’t use a fake name Give the name and address of the original creditor Notify the consumer of their right to dispute the debt Provide verification of the debt Check time zones before calling a debtor Have a compliance policy and enforcer
Reducing your Risk Training collectors Monitor collectors and test them Fire anyone who violates the FDCPA Retain a FDCPA attorney in your area Keep copies of the FDCPA in your office Know your state laws on debt collection Keep records and have policies in place
Resources Blog Federal Trade Commission Feedback to CFPB about new regulations The CFPB’s debt collection examination procedures (Oct 24,2012) fpb_debt-collection-examination- procedures.pdf
Books by Michelle Dunn Understanding the Fair Debt Collection Practices Act Using Social Media in Debt Collections And many more available online and everywhere books are sold.