Article archive
Every published article, newest first. Page 10 of 13.
Debt Collection & BuyingDebt Collection Bonding Requirements in New York City
A question we hear on a regular basis regarding collections in New York City is, "Is there a surety bond requirement that accompanies the license requirement?" The broad answer is "yes" - there is a debt collection bond requirement in NYC. But there is a huge caveat. The bond is only required for agencies that [...]
ComplianceWhat Does it Mean to be Compliant in Today's ARM Industry?
Back in 1964, the Supreme Court heard arguments in the case of Jacobellis v. Ohio. The case, which centered around the First Amendment, involved the manager of a theater in Cleveland Heights, Ohio, who wanted to show a film, "The Lovers." The state of Ohio had deemed the film to be obscene and Nico Jacobellis [...]
LicensingWhen is Safe Harbor Language Not a Safe Harbor?
Section 1692g requires debt collectors to disclose, among other things, the "amount of the debt" a consumer owes. See 15 U.S.C. § 1692g(a)(1). While seemingly simple, this requirement can become thorny when the amount of the debt is subject to fees, interest, and other charges which can increase the amount of the debt owed daily. [...]
LicensingDebt Collection Licensing Strategy
First The agency should identify the states where they are currently communicating with or anticipate communicating with debtors. The statutes are consistently clear among the respective jurisdictions that communicating with a debtor, whether by phone or mail, without being licensed is a violation of the law. The penalty for such violation varies significantly from state [...]
LicensingOutsourcing
The number of conversations I have with agencies regarding the basic tenets of outsourcing is interesting. While most conversations are specifically related to licensing, more often than not, I find myself talking through the more general advantages of outsourcing - those benefits inherent to the idea of outsourcing regardless of industry. While the next few [...]
LicensingDo Minority Ownership Changes Impact Licensing?
Changes to the ownership structure of a licensed collection agency occur for a variety of reasons and are a regular part of the corporate life cycle. Unfortunately, the statutory regulations for the majority of jurisdictions prohibit the transfer of debt collection licenses. Furthermore, the inflexible language of the provisions, in almost all instances, does not [...]
LicensingYou Can't Outsource Risk
Since the burden of compliance flows upstream and you can no longer simply outsource risk downstream it is now imperative that credit grantors and debt buyers understand the state licensing requirements of all their downstream partners and develop a process to make sure that they remain in compliance at all times. Before we move forward [...]
BondsMaryland Bonds in NMLS
The state of Maryland is one of the states that has transitioned many of their bonds to NMLS. They are strongly encouraging current licensees to adopt the electronic bond format and requiring that all new applications be electronic. Look at the checklist below to make sure you are compliant and can avoid time-consuming and costly [...]
LicensingOutsourcing: Why Should I and How Do I?
Why Do I Need To Outsource? I'm always fascinated by the number of conversations that I have with agencies regarding the basic tenets of outsourcing. While my conversations are specifically related to licensing, more often than not I find myself walking through the more general advantages of outsourcing - those benefits inherent to the idea [...]
LicensingWhy Do I Need Errors and Omissions Insurance?
Mistakes happen. It's true in every facet of life, and that includes business. Unfortunately, any professional can be sued or held liable for mistakes made in the course of conducting business. In our highly litigious society, errors and omissions insurance is a good idea for many types of businesses. But in the collections industry, this [...]
LicensingLicensing as Debt Buyer: Who to Trust?
Debt Buyer Licensing Requirements by State Although knowing how to license as a debt buyer has always been a challenge, it certainly isn't getting easier. The list of potential licenses that might apply to debt buyers is continually expanding, and the plaintiff's bar continues to pursue licensing related cases against debt buyers. In addition, courts [...]
LicensingWhy Start a Company in a Regulated Industry?
We are nearing the end of the sales pitch, and the exec I'm speaking to is almost convinced. I feel it: he likes the product and likes the innovation but he has to ask; he can't let me off the hook. He leans forward and looks me right in the eyes. And then it [...]
Debt Collection & Buying4 Ways to Get the Most out of Trade Shows and Conferences
We try to attend a conference or trade show at least once per month. This keeps us up to date on the latest in the industry and allows us to constantly connect with many industry partners, clients, and friends. Attending an industry event allows you the opportunity to not only step away from the office and [...]
From the Desk of the RegulatorOregon Licensing and Compliance Requirements
On August 2, 2017, the governor of Oregon signed into law a bill amending Oregon's collection licensing and compliance statutes and creating new obligations for debt buyers. Most of the new provisions will go into effect January 1, 2018. Please consider the following: Debt buyers, including passive debt buyers, operating in Oregon will be required [...]
LicensingReduce Lawsuits and Increase Collections with Words That Work
Guest Post by Mary Shores Think of a time when you had to call consumer service. How did you feel before you made the call? What about during the call, and after you hung up? Many would say we experience frustration, anger, disappointment, or confusion. Now it's time for the big question: how do your [...]
Debt Collection & BuyingSupreme Court Ends Theory of Liability under FDCPA
On May 15, the U.S. Supreme Court put to rest a theory of liability under the Fair Debt Collections Practices Act (FDCPA or Act). This has a major impact on both the credit and collections industry as well as bankruptcy practitioners who represent creditors. The court found that "the filing of a proof of claim [...]
Licensing4 Reasons Collections Agencies Shouldn't Handle Their Own Licensing
Maintaining your state licenses can be a complicated and time-consuming process. States are continually changing statutory regulations and application requirements making it difficult to stay informed. On top of that, penalties can be serious. However, many collections agencies still choose to handle their own licensing paperwork. This can be a huge risk and cause more [...]
LicensingMaryland Transitioning to NMLS
Effective August 1, 2017 the Maryland Office of the Commissioner of Financial Regulation (OCFR) will transition all licenses under its authority to the NMLS licensing system. The mandatory transition of all licensees begins on August 1, 2017, with the transition period ending on September 30, 2017. All licensees are required to complete the transition to [...]
LicensingU.S. Supreme Court Holds Debt Purchaser Not Subject to FDCPA
Recently, the U.S. Supreme Court unanimously held that the FDCPA does not apply to debt purchasers collecting on its own debt. The decision was regarding Santander Consumer USA Inc. who was collecting on acquired defaulted loans from CitiFinancial Auto. The Court ruled that because the debt purchaser was not collecting on a debt "owed... another," [...]
LicensingHow to Prepare for License Renewals
June is a big month for license renewals for collection agencies, debt buyers, and attorneys. These license renewals can be complicated and time-consuming. States are continually changing their regulations and application requirements making it difficult to stay informed. Make sure you're prepared and don't get caught without a license. Here are four things you need [...]
ComplianceUpdates to Colorado's Fair Debt Collection Practices Act
On April 3 the Colorado General Assembly held a hearing and updates are coming to Colorado's Fair Debt Collection Practices Act. Here's what you need to know: Colorado is proposing to do away with its Collection Agency Board, replacing it with a set of requirements for a single administrator. A recommendation was made to Continue [...]
LicensingThe NYDFS Cybersecurity Approach Marks a Radical Shift for Financial Institutions
Guest Writer: Kim Phan and Roshni Patel with Ballard Spahr The New York Department of Financial Services ("NYDFS") has issued new cybersecurity regulations that went into effect on March 1, 2017. New York Governor Andrew Cuomo described the new regulations as the "first-in-the-nation" to require cybersecurity protections for New York consumers from the ever-growing threat [...]
LicensingAnnual Report and License Renewal: Are Both Required?
In the collections industry paperwork, requirements and deadlines are a big part of the business. Compliance is key to remaining in good standing. We're often asked about the difference in annual reports and license renewals. First, we need to define both. Annual Reports renew your certificate of authority registrations with each Secretary of State. These filings [...]
Licensing4 Things You Need to Attract the Best Employees
We all want to have the best collectors and employees at our agency. You want employees that get the job done while remaining compliant and those that just bring a good vibe to the office. How do you do that? Here are 4 things you need to have in order to attract the best employees: [...]