Customers who owe you money and are having a hard time will look for ways to avoid paying you. It is essential that your collectors follow prudent collection rules and guidelines to prevent giving these customers a way out that not only prevents collection, but could cost you more.
From 2004 to 2007 complaints over collection actions filed with the Federal Trade Commission have risen 25 percent. From 2007 to 2008 lawsuits over Fair Debt Collection Practices Act (FDCPA) violations have risen 43 percent to more than 5,400. And getting information on the internet, good and bad, on how to beat creditors is easier every day. You must have sound collection practices.
If you outsource your debt collections, loans or overdrafts, those collectors must follow the FDCPA. It is true that the FDCPA won't apply to you collecting your own debts, but aren't those good rules to follow? Wouldn't you believe that your collection program can be just as effective using the FDCPA as a guide? And wouldn't adherence to these rules demonstrate your banks willingness to go the extra step and avoid unnecessary complaints and lawsuits? Yes, yes, and yes. Even if the federal FDCPA doesn't apply to you, you may have a similar state law that does. It is always prudent to follow these rules.
Your collection program can influence your CRA rating in more than one way as well. Collections is ripe for fair lending risks. You must ensure that all customers are treated equally. We'll discuss how to do that. And in the recent CRA Q&A that was issued in January, regulators are encouraging banks to participate in foreclosure prevention programs. What are they and how these programs can help you will also be discussed.
What you will learn in this webinar:
- The basic rules of the Fair Debt Collections Practices Act
- Notices necessary for mortgage borrowers
- Notices necessary for your military borrowers (even if you don't know who they are)
- Why threatening innuendos cost you money
- What you can do to collect loans and resolve past dues
- What mortgage foreclosure prevention programs are all about.
Who should attend?
- Loan collectors
- Those who collect overdrafts
- Lenders who work debts in the early stages of collection
- Compliance officers and auditors