Is your collection agency in compliance? The debt collections industry is increasingly regulated. Collection agencies have a bad reputation because of their many abuses, both perceived and real against debtors. Some unscrupulous collection agencies were known to:
- Use profane & abusive language.
- Call and confront the debtor at work.
- Call debtors to early or late based on the Fair Debt Collections Practices Act (FDCPA) guidelines.
- Falsely tell debtors they could serve jail time for not paying.
- Misrepresent themselves as law enforcement, lawyers or government officials.
These
collection agency compliance abuses still can occur today when management is not invested in training collectors in compliance.
Debt collection agencies are increasingly finding themselves under attack from each states attorney general, as well as civil lawsuits brought by consumers alleging violations of the FDCPA. So the question that you need to ask is – Is Your Collection Agency In Compliance?
Collection Agency Compliance
Here are five questions you can ask your collection agency or prospective debt collector to see if they are following the laws and not exposing you to legal liability:
1. Are they compliant with the following collections laws:
- Fair Debt Collections Practices Act (FDCPA)
- Telephone Consumer Protection Act (TCPA)
- Health Insurance Portability and Accountability Act (HIPAA)
- State debt collection laws
The answer should be yes to all of these.
2. Do they perform criminal background checks on collectors in required states?
They should answer yes.
3. How are cell phone debt collection calls handled?
The rules governing cell phones change and can be very complex. You want a collection agency that can navigate these laws and offer your business of practice a Hold
Harmless Agreement if mistakes are made.
4. Do they know what Protected Health Information (PHI) is?
PHI is any information about health status, provision of health care, or payment for health care that can be linked to a specific individual. This is interpreted rather broadly and includes any part of a patient’s medical record or payment history. They better know what it is of the are doing medical collections from any patient.
5. Are they licensed to collect in the states where your debtors reside?
It’s very important that your collection agency can legally collect in the states where your debtors are.
Collection Agency Compliance
So please be sure that the debt collector that you use can answer the above questions satisfactorily. Keep in mind that they are representing you and your business/practice to your customers/patients and community.
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