Nov 17, 2013 Philip Burgess
The federal government has been highly active in the pursuit of debt collection regulation reforms in recent years, especially as consumers and businesses continue to pay off some of the largest sums of outstanding loans following the Great Recession. As a result, agencies need to keep up with the ebb and flow of discussions in Washington, swiftly updating their internal policies to align with new laws and avoid sanctions, fines or other issues.
InsideARM recently reported that Richard Cordray, Director of the Consumer Financial Protection Bureau (CFPB), has once again issued a statement that outlined why debt collection information accuracy is critical. As the industry relies on a variety of data and resources, agencies must have strong record management strategies in place to ensure optimal financial performances.
On the other hand, debt collectors also need to ensure that their information is correct to avoid issues in the collection process, as inaccurate data can lead to several headaches. According to the news provider, Cordray spoke in front of the Senate Committee on Banking, Housing and Urban Affairs to discuss the Advance Notice of Proposed Rulemaking his agency pitched last month.
The source explained that he was especially focused on the problems that can arise when collection data is incorrect.
"If a consumer is being pursued for a debt they don't owe or a debt they may have paid or are validly disputing, and that's not recognized by the collector or debt buyer, that's a big problem," Cordray told the committee, according to InsideARM.
Debt collectors should work to leverage new tools and solutions to ensure that all data involved in the buying and reconciliation processes is accurate. By tightly maintaining records management and information governance, agencies can swiftly adapt to several impending rules that are expected to pass through Washington in the coming months and years.