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Potential Sub-prime Lending Disaster

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Question: 
The bank I work for is new to the sub-prime market and hired me to run the collection process from the ground up. I have built this division and some time ago stated that we need a note taking software system that notes the efforts in collections and all other matters in the process. The bank does not want to spend the minimum amount of money to purchase a system ($150 a month). It is my understanding that the bank is not in compliance with federal laws, am I correct? Am I also correct in believing that the bank is opening itself up to liability?
Answer: 

I am not sure how not having note taking software violated any federal laws. The documentation of collection activities, like any other actions you take in banking, will provide a firm audit trail and come in handy when defending counter suits. The mere fact that you have note taking software will not prevent any suits being filed and depending on the actual notes, it could just as easily be a sword upon which you fall unless your employees are properly trained.

First published on BankersOnline.com 11/26/07

First published on 11/26/2007

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