Reg F. (FDCPA) Compliance Case Study - A Nation Financial Institution

Reg. F (FDCPA) compliance made easy

A national financial institution, utilizing a BPO company to make collection calls on past due accounts, wanted to ensure that borrower communications were compliant with Reg. F (FDCPA).

The financial institution is subject to the Fair Debt Collection Practices Act (FDCPA) and any BPO they utilize is also subject to these same laws. Reg. F requires a debt collector to limit the number of calls, texts or email communication to seven (7) within a seven (7) day period in attempts to collect outstanding amounts. Any system utilized needs to be able to track ALL activity (voice, text, email) to a borrower and suppress any attempt that goes outside of the regulatory limits. Reg. F also has specific rules on borrower contact windows, adhering to a borrower’s choice of communication preference, time of communication preference and many other borrower specific requirements. SAFE SELECT can meet Reg. F requirements as it tracks contacts on a profile basis not a phone number.

Customer Dynamics was able to demonstrate that SAFE SELECT meets the needs for lenders and collectors to meet the compliance requirements for Reg. F. SAFE SELECT connects (via standard API) to the financial institution’s operational lending system to obtain past due amounts and borrower information. All communications are tracked in the system for full compliance audit traceability. The financial institution (and BPO arm) is now utilizing SAFE SELECT on a national basis to comply with Federal and specific State requirements where calls, texts, and emails are being utilized for payment retrieval purposes. Further, SAFE SELECT has an embedded PCI/DSS Level 1 certified payment system (C3 Payment) that allows agents to take a payment via secure credit card processing that exempts the collection agent from PCI/DSS compliance obligations. The integrated system allows for very effective and efficient receipt of payments with the agent on the phone with the borrower. The BPO is also using agentless outbound SMS campaigns to obtain past due payments by utilizing a payment link with C3 Payment. Borrowers can make payments without agent assistance, and pay in a way that is convenient for them. This agentless collection campaign process allows for the reduction in number of agents needed.

With the utilization of Safe Select and C3 Payment they have seen a significant Return on Investment (ROI). If you would like to see the savings possible with our available solutions, connect with our compliance experts today.