LOCKPORT, N.Y. — Spire Recovery Solutions is continuing its support of fallen Special Operations Veterans and their families with a recent contribution to Naked Warrior Project, a nonprofit organization that helps to preserve the memory of the fallen while providing support for their families.

Naked Warrior Project was founded by retired Navy SEAL John Owens in honor of his younger brother, Ryan Owens, a fellow Navy SEAL killed in action on January 29, 2017, on a successful mission against Al Qaeda militants in Yemen. Ryan served in the Navy for 18 years, including 12 combat tours. The 501(c)(3) nonprofit foundation based in Florida holds events locally and nationwide, including fishing tournaments, golf tournaments, memorial dinners, and beach runs yearly to raise funds for its mission “to honor fallen Navy SEALs and Special Operations warriors that have sacrificed their lives for our freedom.” 

Naked Warrior Project works to educate citizens and build awareness of the courageous sacrifices made by warriors such as Mr. Owens, to memorialize their lives and legacies with physical memorials in their hometowns, and to connect families walking through similar paths of loss. In addition to helping Gold Star Families remain connected to community support, the foundation provides grants to support the Gold Star children specifically. 

“Naked Warrior Project has an interesting and important story of origin. I think Ryan Owens’ story, in particular, is the type that too often goes untold or unheard. We need to remember that the cost of war includes those who bravely sacrificed everything and paid the ultimate price for the privileges and freedoms we are so fortunate to enjoy in our country. Not only do their legacies deserve to be recognized and remembered, but we also owe it to their families to help fill in the gaps of the space left behind by these courageous Special Operations warriors who gave their lives in service to and in the protection of our country. We’re glad to be able to contribute to this foundation and its mission,” stated Joseph Torriere, President at Spire Recovery Solutions.  

Spire Recovery Solutions was co-founded by Jacob Torriere and Joseph Torriere, twin brothers who are both veterans and steady supporters of several similar organizations working to support military families of fallen special operations warriors. 

For more information about Naked Warrior Project, please visit nakedwarriorproject.org. To learn more about Spire Recovery’s support of the community and other charitable actions, please visit their News page.

About Naked Warrior Project

Naked Warrior Project is a 501(c)(3) nonprofit organization established in 2017 to honor and preserve the memory of our fallen Navy SEAL and Special Operations heroes. The organization also provides support and a sense of community to the Gold Star Families left behind. The mission of the Naked Warrior Project is to honor the fallen and support their families through donations and funds at hosted events. The Naked Warrior Project is based in Deerfield Beach, FL.

About Spire Recovery Solutions

Spire Recovery Solutions, LLC was founded by U.S. Veterans Joseph Torriere and Jacob Torriere. Spire is located in Lockport, NY, is a professional, nationally licensed full-service debt collection agency that assists creditors in the recovery of outstanding balances while providing consumers with exceptional customer service. Their company’s customized processes and state-of-the-art technology provide transparency and compliance that clients and consumers trust and rely on while working together toward account resolution.

In this episode, Stephanie Eidelman, insideARM President & CEO, interviews Walker White, CEO of Oliver. Watch Stephanie’s conversation with Walker, or read it below.

Stephanie Eidelman:

I’m here today with Walker White, the CEO of Oliver technology. I’m thrilled to have you with me. Tell us a little bit about your company; who are your customers and what pain points do you address?

Walker White:

Thank you very much for having me on today. I look forward to the conversation. Oliver technology corporation, or just Oliver, developed a revolutionary collections solution. It is a 100% cloud-based application, focused initially on the complexities of the litigation channel in particular. Our solution called Oliver CLX, which stands for collections litigation exchange, automates and orchestrates all of the repetitive, legal, and regulatory processes, bringing all of the required parties together onto a single platform to drive more revenue, help them maintain rigorous compliance, and ultimately simplify the litigation process. If you want to imagine a different path, today and historically, particularly in litigation channel, but also in an agency, we continually pass the files around from the creditor to a master servicer, maybe to a law firm, to a process server, and so on.

Basically, we’re leaking value in this process.

And each step of the way there’s data transfer, there’s lots of context; it leads to questions, email, calls, and other inefficiencies. Basically, we’re leaking value in this process. And with Oliver, really what we’ve developed is a modern solution, rather than passing a file around like a game of telephone, let’s use a single platform where everyone can collaborate on the file together and operate much more efficiently. Think of all the systems you use like that, that are like that today. There’s LinkedIn, there’s Facebook where people come together who want to work together. Well with Oliver, we basically built a platform where all the people who have to work together, the creditor, the servicers, the law firms, the vendor, the process servers, appearance counsel…They can all come together and work efficiently. Our customers include creditors but can also include debt buyers, master servicers, and even law firms who just want to accelerate their litigation strategy. So, we have customers across the board and we’re a new entrant into the space and just happy to be here.

Stephanie Eidelman:

In the last week or two, of course, we have all been consumed by this case that came out of nowhere, Hunstein. In case somebody hasn’t heard about it, here is a link to read about it. So this is just the latest in a string of disruptions that happen in a heavily compliance-focused environment like ours. As a technology provider, I’d be interested in your perspective on how the market can avoid these compliance fire drills and how they can, of course, they can’t avoid them happening, but how can they deal with them in a better way?

Walker White:

Yeah, that’s a great point. And, anyone who’s in our market and doesn’t know about this, that’s a whole different set of questions! I think Hunstein is an example of why change is required in this industry and why new technology is just so important. If we just look back over the last 15-18 months, think about the things that have come along. We’ve had COVID — obviously unexpected macro activity. And then we had Regulation F, which was expected; everyone knew, we had lots of comments, but it still requires a lot of change. And now we’ve got Hunstein, which is unexpected. All of these things are forcing change in processes.

And some of those changes can be very, very expensive and they can be very, very disruptive. And ultimately, we’re exposing many people in the supply chain, if you will, from the creditor to the master servicer, to the law firm, etc. We’re exposing them all to compliance risk. And I think that the regulators have made it pretty clear over the years that the creditors are always going to be on the hook for their consumers.

We think the trend is towards what we’ll call “creditor-managed collections,” rather than the more decentralized approach that we have today. This is not going to be creditors dictating the steps that a law firm or others have to take, but rather think of it as them setting the table. And, that’s where a platform like Oliver is very valuable. Where they can say, we’re going to manage all the consumer data in a centralized repository, and we’re going to farm it out to everyone who needs access to it. This allows those creditors to implement, in a configurable group of servicers or vendors that they want to implement their collection strategy, facilitate the data transmissions because it’s the creditor’s platform.

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That allows us to step right around the Hunstein problem because it’s not going to a third party and then from that third party to someone else. It’s going to be coming out of this creditor-managed environment straight there. So the first party is authorizing the release of that information. And then we’re storing and managing all of that information inside of the platform. It doesn’t matter whether it’s for agency, legal, or debt sales. So ultimately we’re kind of centralizing and enforcing the consumer preference data side of that as well, as required by Reg F. So, in addition to our collections litigation platform, giving creditors this unprecedented oversight into that process, because we could also have this built-in federal state, local, and venue-specific laws, rules, or procedures.

So from a before and after perspective, we’re not playing telephone anymore, where we’re going to take the file and toss it to this person, then toss to the next person, but rather from a technology perspective, the creditor’s going to put it into a place where everyone can operate on it seamlessly. And I think that’s the difference that we’re going to see going forward. It’s going to ensure that we’re going to be able to have a very compliant and supportable environment.

Stephanie Eidelman:

It’s interesting that you talk about centralization as a way to kind of standardize or maybe stabilize the process. Is there more you want to say about that and how that looks different tomorrow than it looked yesterday?

Walker White:

I think a good way to consider this is to look at it through the lens of the compliance being built into the solution. Where historically the creditor would send a file out, they would rely upon their servicers, the firms, and so on to manage it. But think about something like Turbo Tax, which took all the laws, rules, and procedures of the tax code, and basically brought it into a platform where even someone like myself can file my taxes online because they built all that compliance into it. So the actual application itself has these built-in compliance rules, such that anyone who’s operating in that environment is picking up the benefit of it.

So rather than having a person say, we sent a demand letter, and let’s make sure 35 days from now, not 34 days from now and not 36, that we pick it up. We have a platform that says that was sent in. Now, the suit is going to be filed. It’s going to automatically be released — never a day early, never a day late, always on time. When it comes to things like proving attorney meaningful involvement, if you’ve got a platform that is able to see and oversee all the processes, it’s very easy for them to be able to say, for instance, the attorney looked at this matter for seven minutes while they evaluated the balance and who it was being mailed to, and so on. So it’s very easy to approve attorney meaningful involvement and all sorts of other aspects of the business. I think ultimately that’s the big difference we’re seeing; rather than leaving it to chance and to the individual parties, the creditor is going to be in a position to be able to oversee that. Not force it, but oversee it and make sure everything’s being followed in the way they expect it to.

Stephanie Eidelman:

It’s really an interesting example, given this current Hunstein situation. We’re in a position of having to demonstrate why it’s so important for organizations to be able to use outside third-party experts, in this case, technology. If Hunstein goes in a way that we hope it doesn’t, what it’s basically saying is that every single collection agency needs to become an expert in all of these things. And here’s a great example — You’ve spent however many years developing this technology to build the compliance in. That’s a specialized skill, right? You’ve spent a long time developing this and to ask every company to duplicate that from scratch…you could say they could buy you. Well, only one company could buy you, and then you’re gone. That’s it. And all the others don’t have it. That’s a great example of how specialized these services like you are.

Walker White:

If you go further on that, like what you’re seeing with the mailing vendors in this particular case, but it also applies to many of the other activities that we undertake all day. We do scrubs, we do asset searches, we do skip tracing. Those are all specialized skills and we can solve a lot of that problem. And again, as I think the Hunstein case is an interesting one in that they even called out that it potentially is going to cost a lot of money, they don’t think that it actually is going to improve privacy at all. So it makes you ask why they did it then, but, irrespective of that, you know, they’re just interpreting what they’re reading.

I think that, at some point, people (particularly creditors) are going to put their hands up and just say I’m at risk here. And so I’m just going to set a table that I can control and make sure you operate. I’m going to set the dining room table. We’re all going to eat at the table. And we’re all going to be fed really well. But basically, we’re going to set the table with what are the boundaries of what we allow to happen. I think that’s going to be good for everybody because ultimately, I think the regulators are really going to be looking at that creditor and that creditor is ultimately going to be responsible for that tree of folks that are underneath them.

Stephanie Eidelman:

Yes, and as we may remember under former CFPB Director Cordray, originally as it relates to debt collection, they were going to write rules for first-parties. They set that aside. The Trump administration didn’t pick it up. I would expect that to be picked up again under this new administration. So, this (your platform) nicely anticipates that.

Walker White:

Absolutely. And again, I think it ultimately comes down to the fact that we have better technologies today, and better — we’ll use the technical term — it’s called “patterns”. There are better patterns for solving collaborative problems like this. And, I think Oliver is a step in that direction, establishing a collaborative platform for all of the parties to work together in a compliant, efficient manner to achieve an outcome that we’re all after. This is good for all the parties involved, but also for the consumer as well, to make it as palatable as possible.

Stephanie Eidelman:

Yes. Anything that provides consistency in the process is going to be better for the consumer. All right, wonderful Walker. I really appreciate it. It’s been a pleasure to get to know you a little bit, and I look forward to talking with you more in the future.

Walker White:

Thank you very much, Stephanie, I appreciate the opportunity today.

ST. GEORGE, UT — TCN, Inc., a global provider of a comprehensive cloud-based call center platform for enterprises, contact centers, BPOs, and collection agencies, today announced the launch of TCN Operator, the next generation of its flagship platform. Built for the modern call center, TCN Operator features an intuitive interface and a comprehensive set of easy-to-use, automated agent tools and advanced apps that all work together to boost agent productivity and improve customer experience.

“TCN Operator is a holistic collection of advanced call center tools that are seamlessly integrated into one cloud-based platform that puts everything in one place and allows monitoring of operations from virtually anywhere,” said Jesse Bird, chief technology officer of TCN. “TCN Operator is highly customizable for meeting all the needs of a call center and, when combined with our no-contract promise, provides maximum flexibility in scaling depending on business conditions. We’re very excited to launch TCN Operator and help call centers worldwide drive operational efficiency and productivity.”

TCN Operator’s features include:

• Omnichannel Communications: TCN Operator’s omnichannel communications via voice, email, and SMS/text provide a seamless, unified experience for call center agents to interact with customers on whichever channel the customer prefers.

• Business Intelligence, Reporting & Analytics: TCN Operator provides a 360-degree view of call center operations to identify anomalies or trends and generate actionable insights for evaluating current operations and optimizing future operations. The advanced search and discovery tools through speech analytics provide insights about recorded agent-consumer interactions.

• Data Management & Compliance: TCN Operator’s advanced and secure data management tools streamline call center practices and simplify call recordings and list management. Its suite of compliance tools ensures adherence to the Telephone Consumer Protection Act (TCPA), the Fair Debt Collection Practices Act (FDCPA), and other state and federal regulations including new and updated debt collection rules issued by the Consumer Financial Protection Bureau

• Workforce Engagement: TCN Operator provides a streamlined approach to managing all aspects of call center operations including scheduling, forecasting, onboarding, and training, evaluating performance and productivity, resolving agent-consumer conflicts, and documenting compliance.

• Integration & Automation: TCN Operator seamlessly integrates with third-party services and applications, automating key tasks including automatic dialing, predictive dialing, Interactive Voice Response (IVR) for routing calls, and Interactive Voice Messaging (IVM) for surveys and automated payments via portals.

Grounded in TCN’s deep understanding of call centers’ needs, TCN Operator is built on the company’s vast experience in supporting billions of interactions every year between call center agents and customers. TCN Operator is accessible to agents with visual impairments and integrates with leading CRMs and APIs including Salesforce and Zendesk.

For more information about TCN Operator, go to: https://www.tcn.com/call-center-solutions/overview/.

About TCN, Inc.

TCN is a global provider of a comprehensive, cloud-based call center platform for enterprises, contact centers, business process outsourcing firms (BPOs) and collection agencies. Founded in 1999, TCN combines a deep understanding of the needs of call centers with a unique approach to pricing – no contracts, monthly minimums or maintenance fees – that supports rapid scaling and instant flexibility to changing business needs. TCN’s contact center platform features a holistic set of easy-to-use, automated agent tools and advanced apps for omnichannel communications, workforce engagement, compliance & data management, integration & automation, intelligence, reporting & analytics and collaboration & accessibility. Its suite of compliance tools helps businesses meet the requirements of the Telephone Consumer Protection Act (TCPA) and other state and federal regulations including new and updated debt collection rules issued by the Consumer Financial Protection Bureau. TCN’s secure platform integrates seamlessly with leading APIs and is accessible to agents with visual impairments. TCN is trusted by Fortune 500 companies and enterprises of all sizes in multiple industries in many countries. For more information, visit https://www.tcn.com/ and follow on Twitter @tcn.

NILES, Ill. — Unifin, Inc is proud to announce the addition of Sergio Martinez as Senior Vice President for Sales and Marketing effective May 3, 2021.

Martinez has close to 30 years of experience in the Accounts Receivable Management (ARM) and Business Process Outsourcing (BPO) industry with experience in Sales & Marketing, Client Services, Compliance, and Operations. 

As SVP of Sales and Marketing, Martinez will be responsible for overseeing the company’s sales team’s efforts for growth and expansion into new markets, as well as the branding and marketing projects for the company.

Martinez holds a Bachelor of Arts in English from California State University, Fullerton.

He can be reached at smartinez@unifinrs.com or (614) 975-6959.

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About Unifin Inc.

Unifin Inc is a national provider of BPO and ARM services and is headquartered in the Chicago suburb of Niles, IL. Unifin specializes in providing customer communications solutions to various industries including financial services, higher education, utilities, healthcare, and government. With offices in the U.S., Philippines, Jamaica, and Nicaragua, Unifin can quickly build a custom solution to meet the unique needs of its clients and their customers. To know more, please visit www.unifininc.com and follow us on LinkedIn.

Houston, TX — LTD Financial Services, L.P., a full-service accounts receivable management and business process outsourcing company, today announced that veteran collections executive Derrek Davis has joined the company as Chief Operating Officer, reporting directly to CEO, David John. Derrek will support the development and execution of LTD’s strategic priorities based on an aggressive new business growth strategy.

As COO, Derrek will direct all aspects of LTD’s business operations, domestic, nearshore, and the LTD “Client First” support team. He will focus on ensuring continued performance success on behalf of LTD client partners while maximizing productivity and enhancing vital strategic partnerships. Derrek’s strategic leadership and operational expertise and proven ability to deliver results in Customer Solutions, Care, Collections, BPO services, and third-party Loss Mitigation will ensure the success of LTD’s business goals.

“Derrek brings a wealth of experience to this position and a strong reputation for operational excellence, we are excited for him to rejoin the LTD family” said David John, CEO. “As we accelerate LTD’s growth and expansion in full account management services, Derrek’s vision, leadership skill, and operational expertise will be an invaluable asset.” 

Derrek brings over 25 years of industry experience and has held numerous executive and operational leadership roles, most recently as Operations Director at Ovation Financial Services. Prior to Ovation, Derrek was LTD’s Senior Vice President of Operations for 15 years where he successfully oversaw the start-up and development of new satellite operations for added collections impact and added revenue value to the company. Earlier in his career, Derrek held leadership roles at GC Services and Triad where he gained key career experience in third-party collections servicing premier credit grantors.

“I am excited to take on this new role at LTD and welcome the opportunity to partner with David and the talented LTD senior leadership team to help execute the Company’s strategic vision and drive sustainable growth,” said Derrek. He added, “It’s good to be home.”

For more information, contact Derrek Davis via email at derrek.davis@ltdfin.com.

About LTD Financial Services, L.P.

Established in 1993, LTD Financial Services, L.P. is a nationally recognized provider of ARM and BPO services. LTD’s solutions consistently deliver quality customer experiences and superior financial results for our clients through leading technology, omni-channel communications, and data driven decisions in a fully compliant, customer-centric culture. Our approach places our clients first in every aspect of our relationship including Customer Solutions, Care, Collections, Recovery, Compliance, Controls, Communication, and Accountability.

Episode Description

Frances Creighton, President and CEO of the Consumer Data Industry Association (#CDIA) stops by #CreditEcoToGo to talk about the core fundamentals of the credit reporting system and the challenges ahead for 2021.  While state and federal regulators have been laser-focused on credit reporting accuracy, Frances tells us there are two bigger challenges. First is ensuring that more people can be included in the credit reporting system in order to gain better access to credit, Second is the policing of fraudsters who are preying on consumers with poor credit and promising them the removal of accurate information from their credit reports. Accuracy ensures that lenders make informed decisions about creditworthiness. The desire to remove negative information or not report negative information, even if accurate, is not a benefit to either the consumer or the lender. If we want the credit ecosystem to work, the truth must be told. #creditreporting #financialservices

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DISCLAIMER – No information contained in this Podcast or on this Website shall constitute financial, investment, legal and/or other professional advice and that no professional relationship of any kind is created between you and podcast host, the guests or Clark Hill PLC. You are urged to speak with your financial, investment, or legal advisors before making any investment or legal decisions.

First Financial Asset Management (FFAM360) is grateful for the opportunity to contribute to the Colin Woodyshek Technology Program and is pleased to celebrate that the fundraiser’s goals have been achieved. This success means young adults on the Autism Spectrum will have access to needed technology equipment, software, and tools for improved communication and increased pre-workforce preparation and training. The nonprofit organization, B Colin Strong, spearheaded the fundraising effort aimed at serving the Palm Beach School for Autism.

B Colin Strong Foundation

The B Colin Strong foundation is particularly meaningful to executive staff at FFAM360 as it provides a relevant and valuable avenue to honor the life and continue the legacy of Colin Woodyshek, son of National Accounts Director, Michael Woodyshek. In addition to battling cancer with unflappable strength and positivity, Colin was among the beautifully neurodiverse students at Palm Beach School for Autism and would have celebrated his 18th birthday this year. This B Colin Strong Foundation directly serves the school which helped him thrive and serve the peers with whom he attended school as they prepare for the transition to adulthood. 

Michael and his wife, Diane, founded the 501(c)(3) foundation, B Colin Strong, to fulfill a mission “to continue Colin’s legacy of strength, love, and courage and to help support other families struggling with both Childhood Cancer and Autism, just as Colin and our entire family had for 15 months and with Autism for over 14 years.” The funds they raise go toward funding children’s Autism development programs, as well as family assistance programs for children fighting Cancer throughout South Florida. The organization has specifically directed fundraising efforts to Palm Beach School for Autism for four consecutive years with an annual motorcycle ride, Colin’s Memorial Ride, as the keynote fundraising event. 

“We were honored to have the opportunity to support this program and stand with one of our own in providing valuable tools for success needed by students at Palm Beach School for Autism,” shared President and Chief Investment Officer Matthew Maloney. “FFAM360 strives to live intentionally and fulfill our company motto to go ‘above and beyond.’ This was a rewarding opportunity to simply join in with a wonderful organization Mike and his family have already developed and support those efforts. One of our core company values is to ‘empower the success of our people with the golden rule.’ There was no question that we would get involved and we look forward to continuing our support for B Colin Strong and its fundraising efforts in the future,” continued Mr. Maloney. 

Palm Beach School for Autism

The Palm Beach School for Autism is located in Lake Worth, FL (Palm Beach County) and provides education for children and young adults diagnosed with an autism spectrum disorder or related learning differences. The school is a tuition-free charter school serving students ages 3 – 21 and specializes in incorporating and integrating therapies, social skills training, behavioral support, vocational training, and more into the educational curriculum to better serve the unique learning needs of its students. 

“We will always have an affinity for the school due to the success we saw in Colin. The teachers and staff helped him make huge strides in his language and communication as well as his adaptability to different environments and situations, both of which can be a significant struggle for some students on the autism spectrum. It brings us joy to help support the current students and their learning needs with the funds raised by the event. We know Colin would be pleased,” shared Michael Woodyshek, Director of National Accounts at FFAM360.

As students at PBSFA transition from primary to secondary grades, the focus and emphasis (in addition to the core educational curriculum) is independence. Young adults may also continue their education in the post-secondary vocation-focused program, Project Next, up to age 21 to receive additional skills training to prepare for employment and independence. The Colin Woodyshek Technology Fund will benefit the young adults of the school specifically by providing increased access to mobile technology, connection to the community, and job training. 

Autism in the Workplace

Entry into the professional workplace is frequently a challenge for those on the Autism Spectrum. Common struggles with things like time management, effective communication, and navigation of delicate social nuances and expectations can become obstacles to achieving and maintaining successful employment. Autism-friendly employment programs, however, are still relatively rare and require flexible employers comfortable with accepting alternative approaches and sometimes providing support to varying degrees. Hence the importance of steadily boosting preparedness from a young age by growing areas of talent and skill, including technology, while developing areas of struggle with appropriate training and support.

Several key elements can significantly increase advantages and preparedness for a successful transition from school to independence and employment, particularly for students on the autism spectrum. These include training in vocational skills, self-advocacy skills, “soft skills,” and self-management skills. PBSFA’s Project Next focuses on providing such training. With the help of the technology fund, the program will be able to build upon and increase these efforts. With the marketability of technology skills ever-increasing, the school looks forward to developing the technology-oriented job skills training program for its students to add to its existing workforce preparation programs in hospitality, culinary, recreation & leisure, and micro-enterprise industries.

Learn More

If you would like to learn more about autism spectrum disorder, please visit the Autism Speaks website or learn more  on TED Talks which has hosted a variety of interesting speakers sharing perspectives from a variety of viewpoints about autism spectrum disorder— from early interventionists to researchers to adults with autism. 

For more information about First Financial Asset Management’s community involvement, please visit the FFAM360 News page. 

About First Financial Asset Management (FFAM360)

The FFAM360 Alliance of companies deploys world-class people, operations, and technology to deliver revenue cycle solutions to their clients that optimize their credit and revenue lifecycles. Founded in 2002 with the vision of creating a best-in-class organization that provides comprehensive solutions across the Insurance Subrogation, Healthcare RCM, Financial Services, and Human Resource Staffing sectors, FFAM360 has achieved many significant awards and recognitions including being honored by the Women’s Business Enterprise National Council (“WBENC”) as a Certified Women-Owned Business Enterprise. They are headquartered just outside Atlanta, GA, with additional offices in Phoenix, AZ and Paso Robles, CA.

In these chaotic days for the accounts receivable industry, it’s important to take note of good news coming from court decisions. So, here’s today’s bit of good news: on April 28, 2021, in the case of Davenport v. Capio Partners, Case No. 20-cv-01700 (M.D. Pa. 2021), a district court granted the debt collectors motion to dismiss finding that (1) failing to follow Metro 2 guidelines is not actionable under the Fair Credit Reporting Act (FCRA); and (2) a Fair Debt Collection Practices Act (FDCPA) violation related to credit reporting accrues at the time the debt is reported.

What happened?

It’s important to note that the court must treat the complaint’s allegations as true on a motion to dismiss (the motion this court decided in this case). According to the consumer’s complaint, accounts for unpaid medical services were placed with Capio Partners, LLC (Capio) for collections. Capio began reporting the accounts to the Credit Reporting Agencies (CRAs) as medical collections in September 2017. Upon receiving notice from its client in early 2018 that the accounts had been paid by insurance, Capio closed the accounts. However, instead of using the Metro 2 special comment code of “BP,” Capio closed the accounts as a “paid collection” (i.e., that the accounts were delinquent, placed in collection, then satisfied). In November 2019, upon receipt of a dispute from the consumer, Capio deleted the tradelines for the accounts. According to the consumer, these facts amounted to a violation of the  FDCPA and the FCRA.

The FDCPA allegations:

The FDCPA has a one-year statute of limitations. In her complaint, the consumer alleged that Capio marked the accounts closed in early 2018.  Therefore Capio did not report the accounts again after mid-2018 at the latest. In holding that the consumer’s FDCPA claims were time-barred, the court relied on a line of cases that state “an FDCPA violation based on false credit reporting occurs on the date which the debt collector reports the debt to a CRA.” Thus, because the last possible date Capio reported the debt was in mid-2018, the latest possible date the consumer could have filed her suit would have been mid-2019. Since the consumer did not file her complaint until late September 2019, the court concluded FDCPA’s one-year statute of limitation had elapsed. 

The consumer attempted to avoid the statute of limitations by arguing that Capio had a continuing duty to correct the tradelines to reflect ‘paid by insurance,’ and the failure to do so violated the FDCPA every time a credit report was generated. The court expressly rejected this assertion, holding that the FDCPA does not impose an affirmative duty on furnishers to correct or modify previously reported information; just because the trade lines appeared on the reports does not mean that a furnisher is continuing to provide that information. Finally, the court noted, there was no authority to support the consumer’s contention that deleting a tradeline of a closed account can violate the FDCPA.

The FCRA allegations:

The FCRA imposes a duty upon furnishers of information to provide accurate information, and a furnisher must conduct an investigation after receiving a consumer’s dispute. Further, per 15 USCA § 1681s-2(b)(1)(E)(i)-(iii), if the disputed information is inaccurate or incomplete, the furnisher must promptly modify, delete, or permanently block the reporting of that information. Despite the statutory text, the consumer alleged that by deleting the tradeline after she submitted her dispute, Capio violated the FCRA. The court disagreed, reasoning that the FCRA does not prohibit the deletion of a closed account. Instead, it specifically authorizes a furnisher to delete the tradeline if it finds the disputed information is inaccurate.

Finally, in concluding the consumer failed to state a claim under the FCRA for which relief could be granted, the court rejected the consumer’s contention that Capio violated the FCRA by failing to follow the Metro 2 industry guidelines. The court pointed out that when assessing the sufficiency of FCRA claims based on allegations of a furnisher’s noncompliance with Metro 2 guidelines, courts have been reluctant to recognize a cause of action. In support of its holding dismissing the consumer’s complaint,  the court relied on cases that held “the FCRA does not mandate compliance with Metro 2 or any other particular set of industry standards” and “industry standards for consumer data are not the law of the land.”   

The court’s order can be found here.

insideARM Perspective:

The holding here is certainly not a reason to ignore Metro 2 policies and procedures.  While FCRA procedures are a must for any entity which is furnishing information to CRA’s, and following Metro 2 guidelines is certainly a best practices approach, it’s good to take stock of cases like this. If, for no other reason, the holding here may allow accounts receivable entities which find themselves on the receiving end of a suit alleging nothing more than a violation of Metro 2 guidelines to dispose of such cases efficiently.

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Did you know over 50% of cases relevant to the industry actually have positive outcomes?  If you want insight into all of the relevant cases with the ability to search by compliance topic, give our Case Law Tracker a spin.  Our weekly roundup will help you see at a glance both the positive and the negative decisions in a given week, and our search tool can help you easily filter positive and negative results by topic.

The CFPB’s Final Rule on Debt Collection (Regulation F) requires us in accounts receivable to focus on the consumer communication preference. So, how can you ensure you are getting the information you need from consumers? And what counts as good information anyway? Read on for a few simple steps you can take right away to optimize your consumer communication preference collection practices. Find out how you can improve your consumer communication, avoid bad outcomes, and get more – and more useful – consumer preference data.

1. Don’t invite revocation

Soliciting the consumer’s preference via a telephone call, inbound or outbound, seems straightforward, but be careful. Some questions or scripts can lead directly to revocation. Consider the language you use in order to avoid unnecessary revocation of a specific channel or even communication in general, suggests Le’Nore Caldwell, Manager of Audit at Spring Oaks Capital. What does this mean? Take, for example, a question like this: “How would you like for us to communicate with you?” This question can easily lead to responses like, “not at all,” or “I would not like to communicate with you.” These are revocations and you don’t want your questions to prompt them.

Pro-tip: avoid open-ended questions entirely. Instead, ask consumers to choose from a suite of options and ask for specifics. For example, you could say, “We are able to text, call, or email you to communicate about this matter; which option would you prefer?”

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2.  Timing and context matter

Think about when it might make the most sense during the call to solicit this information, says Rich Stoltenborg, Compliance Manager at Resident Interface. He recommends asking about preference as to your existing script you use to gather the consumer’s full and complete information. Regulation F does not require a preference update, but since the consumer is already updating demographic information, such as phone number or address, it makes perfect sense – to the consumer and for your processes – to broach preference then, too. Asking the consumer for communication preferences at this point also allows the collector to gather or verify the consumer’s email address or other contact information.

3. Let consumers know what preference really means

Expressing a preference does not bar companies from using other methods to communicate. So, let consumers know how you will use the information they are providing. Regulation F allows for communication via mail in nearly every circumstance, except if the consumer retains an attorney, or advises the collector that they do not want any communication about the debt. Telephone calls are similar, though insideARM recommends that collectors cease phone calls if the consumer has provided their preference and the preference does not include phone calls. Consider saying something like, “Thank you for providing your communication preference. When possible, we will use this method to communicate with you, however, there may be circumstances where we must reach out to you in other ways.”

4. Don’t forget digital channels

Online portals are also a great opportunity to solicit preference from consumers. Consumers can be directed to online portals via email, SMS, agents, or mail, and the preference update can be integrated into existing processes, like payments or authentication. Presenting preference options online can be as simple as providing check-boxes next to available channels for the consumer to select.

5. Ask them about all the channels

Understanding the consumer’s preference is not only important in relation to Regulation F, but it has an impact on strategy, as well. Your current consumer communication channel mix will evolve over time and you will want to know how your consumers feel about channels you do not currently offer.

Pro tip: collect consumer preference for channels you currently offer AND for channels you might offer in the future. You’ll want to know if they have a preference for a channel you might eventually add to your channel strategy. Gathering this data around preference will be crucial for driving technology decisions in the future, so collect whatever information consumers will share. Listing options like WhatsApp and other messaging services on portals can help you stay informed about the trends in consumer communication, too.

For more on how Regulation F defines express consent and what you can or cannot do with regards to consumer communication, see “CFPB Debt Collection Rule Alert: 11 Whopping Misstatements You Need to Know About.“

For more on Regulation F changes and how to handle them, try this recent webinar, Prioritizing Regulation F Changes in Q1 & Q2.

iA Strategy & Tech – a digital event for all executives involved in collections strategy for creditor firms / first-party or agencies / third-party – runs July 13-15. Get the latest on consumer communication preference and more. Learn more.

EAST AURORA, N.Y. — Coast Professional, Inc. (Coast) has hired Michael Del Valle as the company’s Chief Compliance Officer (CCO) and General Counsel. A key contributor to achieving major compliance initiatives across the organization, the CCO/General Counsel provides legal advice, monitors internal and external audits, and oversees the company’s regulatory compliance efforts. 

Michael spent the last 14 years as a partner at a national law firm developing compliance management systems. While there, he trained collection agency staff members in Consumer Financial Protection Bureau (CFPB) supervisory preparedness and advised agencies during examinations. Michael is licensed to practice in the State of New York and specializes in consumer litigation, regulatory compliance, and CFPB enforcement matters.  

Working primarily from Coast’s East Aurora, New York office, Michael will be responsible for managing Coast’s compliance team including the Legal / Regulatory and Quality Assurance Departments. He will oversee the company’s legal counsel and corporate compliance initiatives.

“With 25 years of experience, Michael has an extensive knowledge of compliance and its importance in this industry,” said Jonathan Prince, Chief Executive Officer. “His skills and previous work with Coast as our outside counsel align perfectly with our overall mission and daily dedication to compliance. He has become a trusted Coast advisor and will lead our compliance team toward continued greatness. I am excited to welcome Michael to our team.”

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Michael has served as a member of the Consumer Relations Consortium Advisory Board and serves as an Association of Credit and Collection Professionals (ACA) Consumer Notice Review Panel Attorney.

He received his Juris Doctorate from the State University of New York at Buffalo. 

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About Coast Professional, Inc.:

Coast Professional, Inc. is an accounts receivable management and call center company, dedicated to the respectful and ethical communication with consumers. Coast provides professional services to hundreds of campus-based colleges, universities, and government clients. Coast is a seven-time honoree on the Inc. 5000 list for America’s Fastest-Growing Private Companies provided by Inc. Magazine and in 2020, was recognized for the fifth time as one of the “Best Places to Work In Collections” by insideARM.com and Best Companies Group. Since 1976, Coast has worked closely with clients to increase recoveries by assisting consumers in resolving their financial obligations. Coast’s success is exemplified by exceptional recoveries, superior service, and dedication to the highest levels of compliance. More information about Coast can be found at www.coastprofessional.com