Compliance in the collections space is constantly evolving, with frequent changes in cybersecurity, technology, and legal policies. As you are aware, collection agencies rely on a network of software providers and technology vendors to manage their day-to-day operations.
So, who is responsible for compliance—is it software providers, collections agencies themselves, or somebody else? Our experts explain the responsibility of software providers to manage compliance.
It’s important to look at what possible compliance regulations might come into play. With the Consumer Financial Protection Bureau’s (CFPB) Regulation F ruling, which impacts the Fair Debt Collection Practices Act, debt collectors are prohibited from collecting unauthorized amounts, like pay-to-pay fees. Payment processing providers play a crucial role on behalf of collections agencies as they must ensure no authorized fees are being paid.
Another example of the CFPB’s Regulation F is its ruling that consumers give consent to be contacted through email and that they must be given an opt-out option using the proper language. If a collections agency is using automated software to send messages, the software provider must ensure that they are following regulations.
However, at TEC Services Group, we believe it’s a two-way street. As part of a debt collection agency’s responsibilities, they must evaluate their vendors’ abilities to perform and operate in compliance with the law.
There is no simple, clear-cut answer to who the burden of compliance responsibilities falls on. While collections agencies must do all they can to ensure their operations fall in line with regulations and fair treatment of consumers, the software providers they are working with must also verify their own processes to avoid legal repercussions.
At TEC, we guarantee our clients’ utmost compliance in the debt collections space with our proven, data-driven solutions. We stay up-to-date with data protection standards, legal requirements, and compliance updates to offer the best practices for every client.
If you’d like to begin, TEC Services Group can help evaluate, source, implement, manage and optimize the use of third-party data products. Learn more now.