TCPA Compliance Frequently Asked Questions

April 18, 2015 By Leave a Comment

Complying with the Telephone Consumer Protection Act (TCPA) is a stiff challenge. The act is designed to safeguard consumers from harassing or predatory calls. Its rules are complex and sometimes difficult to interpret—and failure to adhere can result in large fines.

To help comply with Federal Communications Commission (FCC) regulations and requirements, Neustar has prepared a set of Q&As available in a free download on insideARM.

PLEASE NOTE, this Q&A reflects Neustar’s views only, and is provided for informational purposes. It is not a substitute for legal advice.

One of the questions in the report:

Q: Is there any proposed legislation that will change any of the current TCPA boundaries?

A: In 2011, the House of Representatives considered amending the TCPA, but this effort seems to have stalled. Neustar does not anticipate any near-term legislative activity to modify TCPA regulations. However, there are many petitions seeking modification or clarification of the Rule in front of the FCC.

The Commission appears to understand that TCPA regulations are extremely important to many companies and industries, and they understand that it’s important for them to act on these petitions fairly soon. We expect to see some action on these petitions in 2015.

For other answers to commonly-asked questions about TCPA compliance, download the free report.

TCPA Compliance Frequently Asked Questions
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CFPB Finalizes Rule Aimed at Improving Credit Card Agreement Submission Process

April 18, 2015 By Leave a Comment

The Consumer Financial Protection Bureau (CFPB) Wednesday issued a final rule aimed at improving the way that companies submit consumer credit card agreements to the Bureau.

The rule temporarily suspends a requirement that each quarter certain credit card issuers send their agreements to the Bureau, which publishes them in a public database on its website. Other requirements, including card issuers’ obligations to post these agreements on their own publicly available websites, will remain unaffected by the rule.

“Today we are finalizing a rule that will help further the Bureau’s work to improve the public credit card agreements database,” said CFPB Director Richard Cordray.  “Updating and streamlining the process for how credit card companies submit their agreements to us can benefit industry and our agency. Improving this process can also enable consumers and others to access the data faster and in a more useable form. ”

In 2009, Congress passed the Credit Card Accountability, Responsibility, and Disclosure (CARD) Act, which requires that credit card issuers post consumer credit card agreements on their websites as well as submit those agreements to the CFPB. These agreements feature general terms and conditions, pricing, and fee information. The CFPB maintains a public database on its website of these credit card agreements from nearly 450 card issuers. Federal regulations require that companies submit their agreements to the CFPB on a quarterly basis.

The final rule issued by the Bureau today suspends for one year credit card issuers’ obligations to submit their credit card agreements to the Bureau. During this time, the Bureau will work to develop a more streamlined and automated electronic submission system. The Bureau intends for its new submission system to be easier for issuers to use than the current manual submission system. The CFPB also intends for the new system to enable faster posting of new and revised agreements on the Bureau’s website. In designing the new system, the Bureau also intends to explore improved reporting formats for the posted information.

Under the rule, credit card issuers will not be required to submit agreements that would otherwise have been due to the Bureau by the first business day on or after April 30, July 31, and October 31 of 2015, and January 31, 2016. Credit card issuers must resume submitting credit card agreements on a quarterly basis to the Bureau starting on April 30, 2016.

During the temporary suspension period, the CFPB will collect consumer credit card agreements from the largest card issuers’ public websites and post the agreements to its online consumer credit card agreements database. This will help ensure that the database contains agreement terms that are currently offered to consumers by credit card issuers responsible for the substantial majority of existing and new credit cards in the U.S. 

The rule is available here: http://files.consumerfinance.gov/f/201504_cfpb_final-rule_credit-card-collection-suspension.pdf

CFPB Finalizes Rule Aimed at Improving Credit Card Agreement Submission Process
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Accounts Receivable Management

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New Proprietary Service is Now Available Exclusively for ARM Executives

April 18, 2015 By Leave a Comment

Kaulkin Ginsberg is launching KG Prime, a distinctive, member-only information service designed exclusively for the leaders of accounts receivable management (ARM) firms.

Participants in KG Prime will receive proprietary market data developed specifically for executives making critical strategic decisions about expansion. You’re invited to participate.

Prime members will get the exclusive benefits of the following offerings:

  1. Market Intelligence – We will research particular market segments within accounts receivable management and provide KG Prime members exclusive market intelligence reports. Not only will members receive access to the research to share with their team, they will also have a say in future research topics.
  2. Bi-Annual Industry Review – We will provide KG Prime members with a written bi-annual review covering critical topics impacting the ARM industry, such as macroeconomic factors, developing market trends, regulatory compliance, mergers and acquisitions, and our predictions for the industry.
  3. Leadership Surveys – Members will be required to participate in regular surveys to collect, analyze and interpret leadership perception on the most pressing trends, issues and advancements impacting our industry. We will exclusively share the survey results with KG Prime members and you will have a voice in future topics.
  4. Interactive Quarterly Webinars – We will host quarterly leadership webinars that will only be accessible to Prime members. We will address current events impacting the ARM industry and conduct an open Q&A session with participants.

Why Join KG Prime?

As trusted advisors to the ARM industry for nearly 25 years, Kaulkin Ginsberg thoroughly understands the value of having access to the most up-to-date industry data when it comes to making critical business decisions. Through KG Prime, we are now providing this information to you on an exclusive basis. We value your participation.

If you are interested in learning more about becoming a member of KG Prime, email us at hq@kaulkin.com.

 

New Proprietary Service is Now Available Exclusively for ARM Executives
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Accounts Receivable Management

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State AGs Push Loan Forgiveness for Students of For-Profit College Purchased by Debt Collector

April 11, 2015 By Leave a Comment

Nine state attorneys general Thursday sent a letter to U.S. Department of Education Secretary Arne Duncan urging him to “immediately relieve borrowers of the obligation to repay federal student loans that were incurred as a result of violations of state law by Corinthian Colleges, Inc.”

The AGs – from California, Connecticut, Illinois, Kentucky, Massachusetts, New Mexico, New York, Oregon, and Washington – joined a group of Senators who also recently asked ED to forgive the federal loans owed by former students of Corinthian campuses.

A large portion of the private student loans owed by Corinthian student have already been forgiven. That was a concession made by student loan debt collector and guarantor ECMC Group, who closed on its acquisition of Corinthian in February. In a deal brokered by the CFPB, ECMC agreed to forgive some $480 million in private student loan debt initiated by a Corinthian subsidiary.

The nine AGs want the government to go further and forgive federal direct and federally-backed student loans.

Federal and state regulators and investigators launched numerous actions against Corinthian over its lending, funding, and debt collection practices. In July, the company and the ED agreed on a plan that would shutter a dozen Corinthian campuses and sell the remainder to third parties.

“These cases against Corinthian have unmasked a school that relentlessly pursued potential students — including veterans, single parents, and first-time higher education seekers — promising jobs and high earnings, and preying on their hopes in an effort to secure federal funds,” the attorneys general wrote. “These students deserve relief.”

It is not known how federal loan forgiveness would impact the Corinthian portfolio acquired by ECMC. The company did agree to major reforms of the lending program in conjunction with the transaction.

ECMC agreed to not offer its own private student loans to current and future students for a period of seven years. In addition, ECMC has agreed to refrain from certain debt collection practices, including the threat of lawsuit, on Corinthian loans it now owns. ECMC also agreed to remove negative information from student borrowers’ credit reports.

State AGs Push Loan Forgiveness for Students of For-Profit College Purchased by Debt Collector
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Accounts Receivable Management

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BillingTree’s 2015 ARM Industry Survey Report Now Available – Finds New Trends & Technology Parity

April 11, 2015 By Leave a Comment

BillingTree® has released its 3rd annual ARM Industry Operations, Technology & Payments report finding 2015 to be the first year where no discernible difference could be seen in online payment technology adoption by agency size.

The survey also found that agencies once again cited compliance as their biggest concern, with compliance during agent-assisted transactions offering fresh regulatory challenges. Additionally, unclear guidelines on emerging technologies such as the presentation, authorization and storage of electronic documents under Reg E/E-sign continue to cause anxiety.  Over 200 ARM companies of various sizes took the survey in February 2015.

While lock boxes for cash and checks are still in use by 29.6% of respondents, the adoption of automated payment technology looks set to dramatically increase over the next year. Nearly five times more agencies plan to adopt Virtual Agent/Negotiation technology – 24% in 2015 compared with 5% in 2014. Similarly 32% of agencies are looking to incorporate Interactive Voice Response (IVR) over the coming year, nearly double the 18% in last year’s survey.  Consistent with previous year’s surveys, the industry is still divided on the practice of collecting convenience fees. Nearly half (48%) either currently charge a fee or are planning to accept them – while the remaining 52% either have no plans to or have stopped charging fees.

The survey also measured agency work by Industry revealing Healthcare to be the leading source followed by Retail, Bank Card, Auto Finance then all others. In addition, agency acceptance of medical savings and spending accounts (HSA/FSA) was gauged finding only 34% currently able to accept these cards with another 35% interested in or looking to accept in the future.  Additional revelations contained within the report include business growth strategies, compliance risk factors, service and technology needs, payment collection practices, and more.

“After three consecutive years surveying the ARM Industry, a clearer picture has emerged of what concerns agencies most including how they are looking to grow profits and where they are seeking help,” said Dave Yohe, Head of Marketing at BillingTree. “From this we foresee the continued adoption of new payment solutions, services and technology as agencies of all sizes look to increase efficiency and ensure compliance.”  To request a complimentary copy the 2015 ARM Industry Operations, Technology & Payments survey please visit: http://info.mybillingtree.com/2015ARMSurveyReportRequest.html

BillingTree will be discussing the results of the 2015 survey during a webinar on May 14 at 1pm ET. To register visit: https://attendee.gotowebinar.com/register/4313139290176338945

About BillingTree

BillingTree® is the leading, technology focused payment solutions company providing innovative Accounts Receivables products and services that enable organizations to increase efficiency and decrease costs of processing payments while adhering to compliance regulations. For over a decade, BillingTree has committed itself to understanding the marketplace and growing payments with technology, helping merchants accept multiple payment channels while offering comprehensive value their clients have come to rely on. BillingTree has a reputation for dependable solutions and extraordinary customer service, processing billions of dollars of payments annually through a suite of solutions and services that integrate with your company’s needs. Visit MyBillingTree.com or call 877.4.BILLTREE for payment technology that works.

BillingTree’s 2015 ARM Industry Survey Report Now Available – Finds New Trends & Technology Parity

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Accounts Receivable Management

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Executive Changes: KM² Solutions Leadership Transitions Yield to a Promising Future

April 11, 2015 By Leave a Comment

KM² Solutions, a leading US-based contact center services provider, announces leadership transitions to its senior management team.  These transitions reflect the company’s recent growth and its continued focus on strong leadership and innovation.

Dana Brandon Kreiss joins as Senior Director of Client Services.  He is primarily responsible for the effective management of key client accounts, fostering robust and productive operational relationships between the clients and company, as well as spearheading new corporate marketing initiatives.  Prior to joining KM² Solutions, Dana was an Investment Strategist for U.S. Trust, the private wealth management subsidiary of Bank of America.  Dana joined U.S. Trust as an MBA graduate from New York University Stern School of Business, specializing in finance and global business.

Daniel Aristimuno, previously Senior Director of Client Services at KM² Solutions, has now been promoted to Vice President of Client Services and Business Development.  He holds a mandate to create and nurture excellent business relationships, and provide existing clients with extraordinary service solutions, while pursuing new business opportunities to bolster revenue growth.  With over 15 years of sales and business development experience at the leadership level of several well-known multinational firms, Daniel offers KM² Solutions his transformational expertise in implementing company programs and achieving corporate goals.

About KM2 Solutions

KM2 Solutions is a leading provider of nearshore business process outsourcing (BPO) services, specializing in the finance, telecom, media, and technology industries.  With contact centers throughout the Caribbean and Central America (St. Lucia, Barbados, Grenada, Dominican Republic, and Honduras), KM2 provides clients with cost-effective, bilingual solutions for customer care, sales and retention, collections, customer support, and back office processing, through voice, chat, mobile, and email.

President of KM² Solutions

David Kreiss is the founder and President of KM² Solutions. With an extensive background in credit, collections and customer care, Mr. Kreiss has directed KM² to its current status as one of the most technologically advanced multichannel companies in the industry.

For further information, please contact: Joe Wester VP Sales at (262) 790-2656

Executive Changes: KM² Solutions Leadership Transitions Yield to a Promising Future
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Accounts Receivable Management

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Account Control Technology Foundation Releases “Beware the Debt Monster” Video forNational Financial Literacy Month

April 11, 2015 By Leave a Comment

The Account Control Technology Foundation (herein ACT Foundation), a non-profit, charitable organization established by the founders of Account Control Technology, Inc. (ACT), has announced the release of “Beware the Debt Monster,” a short video aimed at building financial literacy by highlighting the dangers of monstrous or unaddressed debt.

As part of the April commemoration of National Financial Literacy Month, the Debt Monster video is being distributed and promoted on YouTube and Vimeo, as well as in direct mail campaigns to colleges, universities and financial literacy providers.

To resonate with a modern audience, the two-minute “Beware the Debt Monster” animated video takes a lighthearted approach, personifying debt as an insidious monster that can sneak up on people, overshadowing their financial future and limiting life’s possibilities.

The video is accessible on the ACT Foundation website and on YouTube:

“With the number of defaulted student loans on the rise and an estimated 35% of Americans with debt in collections, we feel it’s important to highlight debt’s detrimental impact on individual lives,” said Dale Van Dellen, chairman of ACT and the ACT Foundation. “The unfortunate fact is that many people don’t realize the long-term implications of debt, so they don’t seek out all options available to help them avoid, or get out of, financial trouble.”

The Debt Monster video is the latest component of a larger campaign by the ACT Foundation to educate people, particularly those of college age, of debt’s dangers. Late in 2014, the Foundation sent “Beware the Debt Monster” posters to hundreds of colleges and universities nationwide to post in view of students. In addition, the Foundation updated its website earlier this year to outline its scholarship programs as well as provide web links to financial literacy and wellness resources.

“There are many free, high-quality financial literacy resources online, and we hope people will access them,” said Mark Boeder, ACT Foundation director of marketing. “We see the ACT Foundation’s role as promoting financial literacy year-round, leveraging the contacts we’ve established both as a scholarship provider and as a charity whose founders have roots in the debt recovery industry.”

The ACT Foundation welcomes colleges, universities, high schools and other organizations to link to its Debt Monster video. Educational institutions may also request a copy of a Debt Monster poster by emailing foundation@accountcontrol.com.

About the ACT Foundation

The Account Control Technology Foundation is a charitable organization established by Dale and Debbie Van Dellen with a stated mission “to improve the future of students and the greater community by offering financial literacy and debt management education, mentorship and support to those in need.” In addition to funding scholarships and supporting charitable causes, the ACT Foundation promotes financial wellness and higher education planning. For more information or to make a donation, visit www.accountcontrolfoundation.org or email foundation@accountcontrol.com

About ACT

Account Control Technology, Inc. is a leader in providing consultative debt management, collection, default prevention, call center and business office solutions for education, government, commercial and consumer entities. Established in 1990, ACT has been recognized as an Inc. 5000 fastest-growing private company for the past eight years running. The company serves clients nationwide from five office locations: Bakersfield, California; Woodland Hills, California; Mason, Ohio; Dallas, Texas; and San Angelo, Texas. For more information, call 800-394-4228, email info@accountcontrol.com or visit www.accountcontrol.com.

Account Control Technology Foundation Releases “Beware the Debt Monster” Video forNational Financial Literacy Month
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Accounts Receivable Management

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Stoneleigh Recovery Associates Becomes Certified Third Party Collection Agency

April 11, 2015 By Leave a Comment

Stoneleigh Recovery Associates (SRA) today announced that it has earned the highly-regarded designation of Certified Professional Receivables Company (CPRC) after completing the comprehensive national standards contained in DBA International’s certification program. These standards have been recognized for exceeding state and federal laws and regulations through a series of stringent requirements that stress responsible consumer protection through increased transparency and operational controls.

DBA International President Kaye Dreifuerst congratulated SRA and said that DBA certification demonstrates a commitment to operating pursuant to the highest ethical standards and abiding by the program’s standards of excellence.  “I want to recognize and commend Stoneleigh Recovery Associates for its efforts to protect consumers and creditors through the attainment of DBA International’s Receivables Management Certification Program.”

Kelly Knepper-Stephens, Stoneleigh Recovery Associates General Counsel and Chief Compliance Officer, stated that “Obtaining the certification not only provides our customers and consumers confidence, it demonstrates our commitment to running an ethical and compliant business.” Ms. Knepper-Stephens also received her certification as a Receivables Compliance Professional.

The CPRC designation is granted to companies who comply with rigorous uniform standards addressing such items as account documentation, chain of title, consumer complaint and dispute resolution, statute of limitation compliance, vendor management, credit bureau reporting, resale, and other relevant operational procedures.  Individual Certified Receivables Compliance Professional designations are required for each certified company’s chief compliance officer.

Compliance with the CPRC standards are monitored through independent third party audits as well as through a structured self-compliance audit process. For more information about DBA’s Receivables Management Certification Program, or to download an application, please visit DBA’s website at www.dbainternational.org/certification. 

About Stoneleigh Recovery Associates

Stoneleigh Recovery Associates (SRA) is a nationally licensed, bonded, and fully insured boutique collection agency.  Headquartered in Lombard, Illinois, SRA has been in operation since 2007 and provide exceptional debt recovery services for a broad spectrum of clientele in the recovery of outstanding accounts receivable.  SRA is fully compliant with SSAE 16 and is a member of the Association of Credit and Collection Professionals (ACA), DBA International (DBA) and Healthcare Financial Management Association (HMFA). For more information please visit www.stoneleighrecoveryassociates.com.

About DBA International

DBA International (DBA) is the nonprofit trade association that represents more than 575 companies that purchase performing and nonperforming receivables on the secondary market. DBA’s Receivables Management Certification Program and its Code of Ethics set the “gold standard” within the receivables industry due to its rigorous uniform industry standards of best practice which focus on the protection of the consumer. DBA provides its members with extensive networking, educational, and business development opportunities in asset classes that span numerous industries. DBA continually sets the standard in the receivables management industry through its highly effective grassroots advocacy, conferences, committees, taskforces, publications, webinars, teleconferences, and breaking news alerts. Founded in 1997, DBA International is headquartered in Sacramento, California.

Stoneleigh Recovery Associates Becomes Certified Third Party Collection Agency
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Accounts Receivable Management

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What Are Collection Agencies Doing About Due Diligence?

April 11, 2015 By Leave a Comment

Yesterday’s top story should serve as a wake-up call to everyone in the ARM industry. It underlines the Consumer Financial Protection Bureau’s mandate concerning vicarious liability: you are responsible for the companies you keep company with.

Specifically, in the case against a slew of fraudulent companies masquerading as collection agencies, several technology providers that cater to the ARM industry were named as defendants for “providing substantial assistance to the Debt Collectors’ unfair or deceptive conduct.”

What should collection agencies and vendors to the industry do in the wake of this development? If an agency is thinking of partnering with a debt buyer, how much due diligence is necessary?

Specifically: are agencies doing enough — and documenting what they are doing — to show a full understanding of the business practices of their clients, their vendors, and their business partners?

Compliance professionals, no doubt, are doing a lot of “I Told You So!”s. Their’s is among the toughest jobs in the industry: they’re not a profit-maker and they almost always have a hundred reasons why a collection agency can’t do something that the owner is convinced will make more money.

However, it’s compliance professionals who will be at the forefront of this due diligence push. And this is new(ish) waters: how will you know that you know enough about another company to trust them not just with your reputation, but your existence?

We’d love to hear from compliance professionals in the comments below. What are you currently doing for due diligence?

What Are Collection Agencies Doing About Due Diligence?
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Accounts Receivable Management

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Collection Industry Gets Some Positive Attention in Media this Week

April 4, 2015 By Leave a Comment

The ARM industry is used to bad news and negative media attention. But this week, there were a couple articles run in prominent media that cast the industry in a positive light. The first was a nice local profile of a collection agency and the second featured a defense of private collectors on the Department of Education’s student loan collection contract.

Business publication Louisville Business First featured commercial collection agency CST Co. Inc., and its owner, in an article titled “CST Co. Inc. president Pete Roth works to defy debt collector stereotype.”

A reporter for the magazine travelled to CST’s office to profile the ARM firm, in business in the area since 1927. The piece primarily focused on Roth and his journey from territory sales rep with CST to its President, a job he’s held for eight years.

Even the writer acknowledged that that finding sympathy for debt collectors can sometimes be a tough task, beginning the article:

Perhaps for many people, the very mention of a collection agent evokes dread. It conjures up imaginary scenes in which you’re the victim of a confrontational beleaguering.

I, too, held the stereotype.

But I was pleasantly surprised when I met Pete Roth, president of CST Co. Inc. He welcomed me to his office with a warm smile and a hearty handshake. He exudes the congeniality you might expect from a doctor or a minister.

The second positive article was an opinion piece submitted by James Bergeron, president of the National Council of Higher Education Resources (NCHER). While op-eds defending the industry are fairly common, this particular piece ran in the influential Congressionally-focused publication, The Hill.

Writing under the title “Private collection agencies provide critical service,” Bergeron directly tackled the avalanche of negative press surrounding the Department of Education’s private student loan debt collection contract.

Bergeron noted that, “Despite the negative press and accusations, no proof of intentional wrongdoing has yet to be shared.” He then explained that the private collection agencies provide a valuable service in keeping open the $100 billion per year in low-interest loans provided to Americans by the government to attend college.

Most interesting in all of the data provided was the bullet point: In FY 2013, the federal government kept $0.91 of every $1.00 recovered by a PCA, showing the tremendous value of outsourcing collections.

Both articles are great and highly recommended for any ARM professional tired of seeing the same negative attention in the media.

 

Collection Industry Gets Some Positive Attention in Media this Week
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