In September 2016 the Association of Credit and Collection Professionals (ACA) co-hosted a seminar titled “Governmental Investigations Involving the Debt Collection Industry” that featured government officials discussing current issues in enforcement investigations related to debt collection.
Representatives from the Consumer Financial Protection Bureau (CFPB) explained how they decide to pursue investigations and enforcement actions and how debt collection companies can work with them throughout the process.
According to Greg Nodler, the CFPB senior counsel for enforcement, policy and strategy, and Anthony Alexis, the CFPB assistant director for enforcement, when deciding to pursue an enforcement action the CFPB considers factors such as the size of the institution, the number of consumers harmed, the severity and duration of the harm, whether other institutions similarly situated should be aware that this type of conduct should be changed or discontinued and the track record of an institution.
Nodler and Alexis also discussed how companies should react to receiving a Civil Investigative Demand (CID). The institution should read it carefully to ensure understanding the scope of the investigation and potential legal violations. In addition, Mr. Alexis stressed that the company should bring the right individuals to the meeting: Those who understand and can speak to the issues raised in the CID. Also include those with a technical understanding of the company's ability to schedule compliance with the production of records and information.
Compliance with CFPB and Payment Card Industry Data Security Standard (PCI-DSS) is mandatory in the collections industry. BillingTree understands the concerns for compliance and therefore offers Compliance Central, which is a free resource for their clients. To learn more about how BillingTree helps your business with compliant collections, contact BillingTree at 877-424-5587.