When you register for this session, you will receive a Toolkit that includes (but is not limited to) the following items:
- (1) Strategies to improve your collections skills;
- (2) Tips to ensure all accounts are handled in a consistent fashion;
- (3) Important provisions to add to your institution's debt collections policies and procedures NOW!
By broadly interpreting the types of collections practices that are considered Unfair, Deceptive, or Abusive Acts and Practices (UDAAP), the Consumer Financial Protection Bureau (CFPB) has redefined the types of practices your FI can employ to collect on debts.
Since opening its doors in 2011, the CFPB has relied on its authority to prosecute UDAAP more than any other authority. In fact, half of the enforcement actions the CFPB has made public have alleged UDAAP violations. The Agency has relied on its UDAAP authority for two primary reasons. First, the penalties for conducting an unfair or deceptive collections practice can be steep—up to $1 million per day for knowingly violating the law.
Second, and most importantly, the Bureau has taken advantage of the UDAAP provision's broad and vague language. Because the statute provides little guidance as to what constitutes an "unfair" or "deceptive" act, the CFPB is empowered under its UDAAP authority to prosecute conduct it dislikes—even if such conduct is not explicitly in violation of the law. Despite being urged by Congress to use the Agency's rulemaking power to clarify the scope and meaning of UDAAP, the CFPB has built its UDAAP doctrine on a case-by-case basis.
We will likewise discuss another issue of paramount concern: In May 2016, the CFPB proposed a rule that would restrict the use of arbitration clauses in consumer financial contracts, which would have the effect of enabling consumers to lodge class-action lawsuits against FIs should be a critical concern.
In this session, we will examine the CFPB's broad application of its UDAAP authority. Taken together with an exploration of the CFPB's various informal guidance documents addressing debt collection issues, we will determine what constitutes a potential UDAAP violation according to the Bureau.
We will also review the Federal Deposit Insurance Corporation's (FDIC) debt collection recommendations for 1st party collectors, as well as compliance points related to the Fair Credit Reporting Act (FCRA), the Fair and Accurate Credit Transaction Act (FACTA), and the Fair Debt Collection Practices Act (FDCPA). Finally, we will explore the recent verdicts and rulings that affect how you handle slow-paying accounts.
This webinar will provide concrete steps your bank or credit union can take to identify and mitigate UDAAP risks.
Additionally, we will highlight collections red flags and offer tips to help you identify loans before they become delinquent. This Webinar will provide you with best practices, examples of collection letters, steps to follow when reporting adverse consumer information, and collection scripts that work!.
We will discuss the following issues:
Overview of Credit & Collections
o Fair Credit Reporting Act (FCRA) / Fair & Accurate Credit Transaction Act (FACTA)
o Fair Debt Collection Practices Act: 1st Party & 3rd party collecting guidelines
o Consumer Financial Protection Bureau: 1st party collecting, UDAAP, and customer complaints
o Military Lending Act
= Policy and Procedures
= Court Cases that affect you
= 7 tips your policy must have to help collect your money
= Reviewing the credit application for Red Flags and ID Fraud
= Notices vs Letters: Design the perfect Collection Letter
= FACTA REG V Compliance
= Email dos and don’ts
Calling the Consumer
= Motivate the customer to pay in full with one call
= Enhancing your negotiation skills and work outs
= Learn the real reason they are not paying you
= Find overlooked sources of money
= Using credit reports to uncover facts about consumer
= Select the right collection agency or attorney: Are they FDCPA & FACTA Compliant?
= Using the WEB as a great skip tracing tool
= Reporting the Banks past due customers through Metro2 & E-OSCAR & FCRA/FACTA Compliance
= Putting this knowledge into action
Who Should Attend?
This informative session is would best suit the following personnel:
- Accounts Receivable
- Credit and Collections staff
- Finance Managers
- Accounting and Financial Reporting Managers
- Treasury Staff
- Cash Flow Managers
- And, Anyone Interested in Increasing Cash Flow!