Jun 11, 2013 Philip Burgess
Debt collectors have a variety of challenges to overcome virtually every day, and adhering to the best practices and legal compliance associated with the actions can help firms in the industry accomplish goals more efficiently. While the Fair Debt Collection Practices Act lists many of the required and prohibited actions firms can take when approaching consumers or businesses who hold the credit, debt collection agencies also need to be especially vigilant when dealing with the banks that loaned the money.
InsideARM recently reported that a multi-state investigation has begun in Iowa that is seeking to understand the legality of paperwork between debt buyers and banks. According to the news provider, Iowa Attorney General Tom Miller will be leading the investigation, which is specifically targeted at credit card debt buying, and if the paperwork between collection agencies and financial institutions is comprehensive enough to protect all those involves.
"What we are hearing, in many cases, is the paperwork that the banks provided the debt buyers may be incomplete, or the paperwork that the debt buyers may have presented to court to collect on that debt, is incomplete and the result is we have spotty paperwork and it is not accurate," Tom Miller's spokesman Geoff Greenwood explained, the source explained.
Data management and information governance is a critical component of debt collection operations. InsideARM noted that the Federal Trade Commission and Consumer Financial Protection Bureau will be hosting a workshop to explore the best practices of data management that has been transferred from banks to debt collectors.
The CFPB Monitor explains that the discussion will include information on how debt disputes will be investigated under the Fair Credit Reporting Act, as well as the benefits of being as comprehensive as possible when providing consumers with their debt-related rights.