Fair Debt Collection Practices Act (FDCPA) Policy Manual

Servicing is a complicated space. Not all transactions are the same. How do you implement and observe those consumer protection mechanisms related to debt collection as required by related regulations administered by the CFPB and others?

Overview

The Fair Debt Collection Practices Act (FDCPA) is a United States statute added in 1978 as Title VIII of the Consumer Credit Protection Act. Of all of the federal regulations, this is the one that is most critical to consider when servicing consumer loans. Clear direction regarding the application of FDCPA and an accurate determination as to which debts are Covered Debts is integral to maintaining a compliant servicing operation. With the AllRegs Fair Debt Collection Practices Act Policy Manual, you will help ensure your company's appropriate communications and related methods helps to reduce claims of harassment or abuse. This manual provides the following benefits:

Mortgage bankers/brokers/lenders and servicers have certain duties as users of consumer credit reports and as furnishers of credit information to consumer reporting agencies. AllRegs integrated Fair Debt Collection Practices Act Policy Manual outlines the responsibilities with which mortgage industry participants must comply.

  • Eliminate abusive, deceptive and unfair debt collection practices by debt collectors in the collection of consumer debts
  • Promote fair debt collection so that those debt collectors who refrain from using abusive debt collection practices are not competitively disadvantaged
  • Provide consumers with an avenue for disputing and obtaining validation of debt information in order to ensure the information's accuracy
  • Promote consistent state action to protect consumers against debt collection abuses

In addition, the AllRegs' Fair Debt Collections Practices Act policy addresses the following topics:

  • Definitions
  • Debts Covered by FDCPA
  • Covered Debt Collectors
  • Acquisition of Location Information
  • Communication in Connection with Debt Collection
  • Prohibited Practices
  • Validation of Debt Notice
  • Multiple Debts
  • Legal Actions
  • Furnishing of Certain Deceptive Forms


Benefits

AllRegs Fair Credit Policy Manual offers the following benefits:

  • Complete Fair Debt Collection Practices Act Policy Manual, saving you development time and resources
  • A policy manual is delivered via email within one business day after purchase
  • Ability to personalize the plan or manual with your company brand by performing a simple find and replace function
  • Customizable by you, with your internal policies and procedures
  • Ability to add, delete and update your plan to suit the business model of your organization
  • Meet your regulatory or internal compliance requirements
  • Affordable one-time purchase fees

Optional Services

Maintenance: Receive regular and ongoing industry updates to keep your policy within regulatory requirements.

Publishing: Publish your manual, including your company procedures, in AllRegs Online to complete your policy manual solution.

Contact your account manager for information regarding these optional services!


Policy Manual
Fair Debt Collection Practices Act (FDCPA)
Section Title Priority Action
1.1 Goals and Objectives Mandatory Review Include the point of view or culture of your organization in this section, if applicable.
1.2 Required Review Mandatory Review Be sure this accurately reflects your company’s annual policy review process.
2.1 Internal Controls Mandatory Review Include or reference related procedures in this section.
3 Staff and Training Mandatory Review Include the means by which your organization provides and tracks required training.
4.3 Debts Covered by FDCPA Mandatory Review You may need to edit this section to reflect what applies to your operation.
4.4 Covered Debt Collectors Mandatory Review If your entity collects debts under a name other than the company name, you should expand on that here.
4.5 Acquisition of Location Information Recommended Best Practice Modify this section to indicate who will perform audits related to location information, and with what frequency.
4.6.1 Communication with the Consumer Recommended Best Practice Modify this section to indicate who will perform audits related to location information, and with what frequency.
4.6.2 Communication with Third Parties Recommended Best Practice Modify this section to indicate who will perform audits related to location information, and with what frequency.
4.6.3 Ceasing Communication Recommended Best Practice Modify this section to indicate who will perform audits related to location information, and with what frequency.
4.7.1 Harassment or Abuse Recommended Best Practice You may need to modify your guidelines for Ring Count and Number of Calls. Modify this section to indicate who will perform the related audit and with what frequency.
4.7.2 False or Misleading Representations Recommended Best Practice This section may require revision of the mini-Miranda as implemented within your operation. Review the options within the text box and revise the disclosures as needed. Modify this section to indicate who will perform the related audit and with what frequency.