Industry Self-Policing Goes Back to 1928; NARCA Follows Suit

Mark Dobosz

In a January 15, 2016 article in American Banker Magazine (Banks Can Use ‘Code of Ethics’ to Strengthen Public Trust), Robert Taylor points out “…an advantage of developing an ethics code is that, unlike bank regulatory policy that must be adjusted constantly depending on the jurisdiction and interpretation, ethical standards are basically timeless. In fact, the Code of Ethics crafted by community bankers at the 1928 convention of the Louisiana Bankers Association is still relevant today.”  He adds, “None of us can escape the inevitable ethical dilemma. But having high expectations for your bank’s culture, and your own ethical behavior, is its own reward. It will also help restore public confidence in this profession.”

Since 1993 – NARCA, The National Creditors Bar Association — has had the NARCA Code of Professional Conduct and Ethics as its cornerstone. All NARCA member firms are committed to fairness in the collection process for everyone. In addition to local, state and federal laws, and State Bar Association licensing and certification, attorney members are required to adhere to the Code.

While the debt collection industry has had its share of “bad players,” creditors’ rights attorneys, and in particular members of NARCA, represent the highest and finest examples of ethics in practice.

The Consumer Financial Protection Bureau continually reminds the financial services and debt collection sectors that “self-policing” is integral to providing consumers with the confidence and knowledge that the industry is operating in an ethical manner in their interactions with consumers. NARCA demonstrates this process by also utilizing a Grievance Process for its members and clients, providing a forum through which to investigate and sanction (where necessary) violations of their Code of Ethics.

Additionally, the fundamental regulation of creditors’ rights attorneys by the state bar associations, judiciary, state legislatures, and attorneys general has a foundational layer of ethical oversight, which if violated, could lead to the loss of an attorney’s license to practice law. This consequence does not exist through any other regulatory body at the federal level.

The 1928 Louisiana Bankers Association Code of Ethics may be a historical reference among banks that saw “self-policing as very important to their profession. The 1993 NARCA Code of Professional Conduct and Ethics stands as a hallmark and legal profession example for creditors rights attorneys. Is it timely, and a strong example of self-policing? Yes, one which consumers should take comfort in during these times.