When you are dealing with debt collection for your company or you are hiring an agency to do the job for you, it is crucial that you take care of the compliance of the rules and regulations that are in place for debt recovery.
As a company owner, it is natural that you want to get your money back. And why not! After all, your debtors have purchased your products or services on credit and yet to give you the money.
So, when you are planning to get your money back, and probably with the help of a third party entity, you surely don’t worry about reach of law that might not only affect your recovery process but will also create extra-legal hazards for you.
Why Compliance is Important
If you pay attention, you will notice how the threats of cybersecurity and regulatory complexity are increasing. If you are a small business owner, you are at more risk. That is why you must think of ensuring that you comply with the data security management protocol so that you can minimize the risks of finances.
The Consumer Protection Financial Bureau has set out the rules of debt collection which must be complied by every organization as well as all the collection agency services while recovering the debts.
Things an Organization Needs to Consider
Now, this is a very crucial decision for you when you are looking for help from a third party agency for recovering your debts. So, when you are hiring one of the best collection agencies, be assured that they will indeed comply with the rules set by CPFB.
While initiating the debt recovery as well as dealing with delinquency, it is necessary that the agency you are hiring is following the regulations diligently so that you can keep any legal complexities at bay while getting your debts back. The things that the agency as well as you, need to keep in mind are,
- The debtor, individual or business, should be treated with all fairness while complying with the regulations to which they adhere.
- Deception and abuse should be completely avoided during the initiation and recovery period. In case, you or the agency (you are hiring) abuse the debtor, they can file litigation for harassment and threat against you.
- You as well as the agency should notify the debtor duly about the money they owe you.
- There should not be any involvement of the unauthorized party. The privacy of the debtor should be respected at any cost and you or the agency you are hiring should never divulge the information to anyone.
Maintaining Compliance Culture with the Debt Collection Firm
As maintaining compliance is actually directly linked with the reputation of your company, it is always a better option to create and follow a compliance culture in your organization. And when you are making a third party agency apart for dealing for their debt collection service, it is necessary that you think of maintaining the following steps,
- Monitor, help and prevent any violation of regulations
- Take care and protect your consumers
- Minimize the risks of litigation
- Review and supervise the agent calls regularly
- Get trained about your way of communication
- If there is any consumer complaint, thoroughly investigate it
- Improve and increase the security of consumer data
- Regular audits in terms of policies and protection law, and compliance of state and federal laws
So, now as you know how compliance can be crucial and how you can maintain that, hire an agency that values these ideas just like you do.