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Debt Collection & Buying

4 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 [...]

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From the Desk of the Regulator

Oregon 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 [...]

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Licensing

Reduce 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 [...]

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Debt Collection & Buying

Supreme 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 [...]

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Licensing

4 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 [...]

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Licensing

Maryland 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 [...]

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Licensing

U.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," [...]

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Licensing

How 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 [...]

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Compliance

Updates 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 [...]

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Licensing

The 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 [...]

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Licensing

Annual 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 [...]

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Licensing

4 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: [...]

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Compliance

4 Steps for Collectors to Remain Compliant

The debt collections industry is increasingly regulated. Collectors have the task of representing many different people and must ensure that all actions are compliant. One important area of compliance is consumer communication. Collectors have to be trained on how to avoid violating the 30-day validation period when the communicate with the consumer. It's important to remember [...]

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Licensing

How to Effectively Communicate as a Debt Collector

Communication methods are rapidly changing and it can be difficult to keep up. And as a debt collector, you generally must communicate to an increasingly diverse population. There are always going to be issues that make communication challenging, that's why it's important to have good debt collection techniques. It's not just a matter of learning how [...]

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Licensing

Top 4 Characteristics of Collection Agents

Is your agency planning on hiring a collection agent? How do you ensure you've found the right person for the job? A recent ACA International survey showed what specific characteristics and skills collection agencies are looking for in potential candidates. These are characteristics of a collection agent that's going to succeed at their job and [...]

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From the Desk of the Regulator

Arizona Collection Licenses Move to NMLS

There are some major changes happening with the Arizona Department of Financial Institutions. Here's what you need to know: 1. Arizona has transitioned to NMLS to manage Collection Agency Licenses. Each company holding an AZDFI Collection Agency License who wishes to manage their license on NMLS must create a company record in the system, both [...]

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Insurance

The One Coverage You Probably Don't Have, But Need

You have taken steps to protect your agency against consumer lawsuits, but what about the potential threat from within your organization? The number of lawsuits against employers for hiring and firing decisions, or even discrimination, continues to rise. No company is immune to these types of lawsuits, and the inevitable turnover on your collection [...]

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Licensing

3 Reasons You Need E&O Insurance

Errors & omissions (E&O) insurance is designed to protect a company in the event of a lawsuit stemming from their normal business activities. Also known as professional liability insurance, E&O coverage is especially important in the highly litigious collections industry. Many debtors file lawsuits against collection agencies under the federal Fair Debt Collection Practices Act [...]

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Licensing

3 Factors to Consider When it Comes to CFPB Compliance

The Consumer Financial Protection Bureau, or CFPB, was launched with a goal of protecting consumers in financial transactions with banks and lending institutions. However, its reach has extended much further. Not all businesses are aware of the necessary requirements in order to comply with CFPB regulations now. And non-compliance can cost businesses enormous penalties, fees, [...]

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Insurance

Hired Auto Coverage - Are You Covered?

Have you ever purchased a new toy for your kids, an expensive camera for a spouse, or even a new power tool for yourself, only to realize upon opening that you overlooked the "batteries not included" note on the box? Similar oversights with your business insurance can lead to major setbacks, and the fix isn't [...]

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Licensing

4 Ways to Lower Your Cyber Security Risk

Did you know: 50% of small businesses have been breached in the past 12 months. (According to a report by Keeper Security and the Ponemon Institute) Data breaches are increasing at an alarming rate. Businesses, especially small businesses, continue to misjudge their cybersecurity risk and often obtain insufficient cybersecurity insurance protection (or none at all). [...]

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Licensing

Rule 68 - Dead or Alive?

Can an unaccepted Rule 68 offer of judgment be used to strip a Federal Court of subject matter Jurisdiction? A divided U.S. Supreme Court recently answered the question, no, in Campbell-Ewald Co. v. Gomez, 136 S. Ct. 663 (U.S. 2016). Article III of the US Constitution limits federal court jurisdiction to "cases" and "controversies." If [...]

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Licensing

How to Create a Culture of Change Management

From the October 7 issue of AccountsRecovery.net Daily Digest Change management is becoming more important at collection agencies, as they seek to develop processes for efficiently managing an overflow of information that requires updating and adapting systems to comply with an ever-changing patchwork of rules and legal rulings, according to a panel of speakers who [...]

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Licensing

Ransomware on the Rise

Written by: Lara K. Forde, Esq., CIPP/US Matt Peranick, CIPP/US, CIPP/CA Ransomware is now the number one security concern for businesses. Estimates from the FBI put ransomware on pace to be a $1 billion dollar source of income for cyber criminals this year. The ransoms have doubled over the past year as studies show almost [...]

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