PR - DBA International Weighs in on FTC Debt Collection Workshop

Fact-finding and consensus-building were the objectives of the recent two-day FTC workshop, “Collecting Consumer Debts:  The Challenges of Change.  Representatives of the Debt Buyers Association (DBA), International along with hundreds of stakeholders within the debt collection industry, participated in the workshop held Wednesday and Thursday, October 10th and 11th.  Designed to provide a high-level review of major trends and issues in the industry, the workshop featured three leaders from DBA International who shared their views on legal compliance of debt collectors, the influence of technology, the opportunity for self-regulation and the effects of increased litigation.

Barbara Sinsley, DBA General Counsel, Stacey Schacter, DBA Board member, and Gary Wood, DBA President, participated on panels that addressed the business and concerns about debt collection practice from the debt buyers’ perspective.  DBA International is the association of industry professionals dedicated to building a reliable and credible market for delinquent receivables, and leaders have been working with the FTC to implement consumer protections outlined by the Fair Debt Collection Practices Act (FDCPA).  Their insight, on behalf of members, helped guide discussions that seemed to identify two broad areas of reform:  debt verification and methods of consumer communication. 

“The workshop was a great start to initiating dialogue between industry, consumer groups and the FTC but there is still much work to be done,” Sinsley says.  “We simply want a clear set of rules and uniformity in compliance standards so that we can effectively communicate with our customers to resolve their debts amicably.”  In response to a discussion during the workshop about the need to define a social policy for approaching collection Sinsley said, “DBA International believes it is the personal responsibility of each debt collector to use the highest ethical standards when trying to work out a repayment or settlement plan.”

Notification of debt collection has become more complicated since the FDCPA was drafted and the issues presented by the advancements in, and adoption of technology, continued to surface throughout the workshop.  Today, the increased use of cell phones, predictive dialers, caller identification, email, text messaging and electronic, and paperless transactions present opportunities for contact often preferred by customers but prohibited by various federal statutes and case law.  DBA International panelists and others suggested amendment of the Act to allow receivable owners and collectors to use other means of communication to contact customers.

“Who should guide the industry in appropriate methods of consumer communication was left unresolved,” Schacter says, “but the need to adapt legal requirements to changing technology was clearly endorsed by everyone.  We also agreed that a basic set of information should be provided to the debtor by the collector but discussion around the specifics surrounding the type of information to be provided and when the debt collector should get that information was left open-ended.” 

Panelists answered more targeted questions on the second day of the workshop identifying areas of improvement and the use of routine practices and procedures such as skiptracing, credit reporting and litigation.  “These are three important areas that require further study and discussion,” Wood says.  “Identification verification is critical to the debt collection industry.  Collectors need to use social security numbers to target the correct individuals in an effort to maintain their privacy and resolve debt quickly for the customer’s benefit.  Adequate and reliable sources of information both public and non-public are lacking.” 

DBA International leaders met on Friday following the workshop to discuss the outcome and have informed members of the discussions that occurred.  The organization is working on a written submission of their members’ recommendations, issues and suggestions for reform that is due to the FTC by November 9th to be included with the official workshop record.

Members of the association are committed to developing a balanced approach to address the current inconsistencies between the statute and prevailing case law but additional industry study and research is necessary before legislative recommendations or policy changes can be made.

Association leaders will be focusing on DBA International’s internal checks and balances as a form of self-policing to the highest code of ethics and standards developed by the association.  The board of directors will remain in close contact with other industry groups and the FTC to achieve consensus on issues and investigate areas still open to debate.