best practices collector calls notices and required disclosures trust accounts richard dumais (ma)...
TRANSCRIPT
Best Practices
Collector CallsNotices and Required DisclosuresTrust Accounts
Richard Dumais (MA)
Jeff Hubbell (CT)
Garrett Young (MA)
Agenda
Collector Calls
Collection Notices
Required Disclosures
Role Play
Trust Accounts
Q & A
Additional Information/Contacts
FDCPA Mini Miranda
This communication is from a debt collector and is an attempt to collect a debt. Any information that you provide to us will be used for such purpose.
Collector Call Documentation
Notes, Logs Letter History Payment History Recordings
Collector Calls - Triggers
Dialogue Dispute -code
Post dated Payment – notices
Series of Payments arranged
Third party involvement – code
Someone upset
Time of day included in account history – pattern identification
Number of times called [pattern identification
Bankruptcy - code
Selection Criteria
Represent a cross section of accounts
Industries
Calls from multiple call centers
Payment Types
Major Clients
Account comments
Call Checklist
Phone Monitoring Check List
Triggers
Action Codes
NTNote Only
OPOther Phone
SCSupervisor Call
TETelephoned
Employer
TNTelephoned
Neighbor
TRTelephoned
Residence
Result Codes
AM Answering Machine
LB Line Busy
LM Left Message
NA No Answer
TT Talked To
WN Wrong or NonPub #
Verifying Debtor
First and last name
Birthday, address
Last 4 digits of social security #
Follow-up Calls – Account #
Right Party Consideration
Debtor Answers Phone Failure to disclose to debtor that the call is from a debt
collector and all communication will be used for that purpose Collector fails to disclose personal name Obscene/profane language Threats Announcement that collector will take action they do not
intend or legally cannot take action. False representation about debt (amount, legal status)
Calls
Third Party Answers Call
Failure to disclose agency name
Collector fails to disclose personal name
Disclose name of licensee in absence of express request
Disclose there is a debt
Discuss debt
Multiple communication to third party
Wrong #
Role Play
Collection Notices
Initial contact validation Notice
Notice of Intent to deposit
More than 5 days must send notice 3-10 days in advance
Recurring written authorization for EFT
NSF letter
Broken promise notice
Settlement letter
Trust Accounts
Benefit of Protocols & Exams - SRR
Sample Trust account
Copies of statements/checks
Age of checks
Date of check
Are you in balance
Co-mingling
Sweeps
Negative balance
Transfers
TRUST ACCOUNT EXAMINATION PROCEDURES
WHY
Many states require that a licensee maintain a trust account if a collection agency receives or holds funds belonging to another entity. Additionally, many clients require separate trust accounts. These funds are required to be separate from those utilized in the operation of the business, therefore the licensee must also maintain a separate operating account in order to function.
All accounts, including the operating account, should be reviewed from the prospective that if any of the accounts are mismanaged, the business, client and most importantly the debtors could be compromised.
Conceptually - verification of a debtor being credited for having made a payment cannot be confirmed without ensuring the payment information has been reported and credited to the client. Procedurally, one of the best ways to accomplish this is through the reconciliation of the trust account(s) by verifying that all remittances have cleared, thereby knowing that the client has received some form of a report identifying payments made.
Nuts & Bolts
Verify that the Trust Account Balance Covers the Total Amount Due to Clients
Verify the Proper Use of the Trust Account
Verify the Accuracy of the RecordsThe first thing to do is determine if the trust account has sufficient funds to cover the amount due to clients from debtor payments received. If the account is substantially out of balance “OUT OF TRUST” this is a serious issue that will need to be addressed with your line of supervision. In practice, this process is really no different than balancing your own check book, just with much larger dollars and volumes.
Questions
Additional Info Websites
www.nacaraweb.org www.ftc.gov
Contact Information Rick Dumais
[email protected] 617-956-1500 Ext. 662
Jeff Hubbell [email protected] 860-240-8205
Garrett Young [email protected] 617-956-1500 ext. 626