The debt collection industry has undergone major transformations over the past decade, as it has evolved to keep pace with changing compliance requirements.
Collection agencies large and small have adopted new technologies to ensure that they comply with these ever-changing regulations.
But, challenges remain in the fast-moving regulatory landscape for efficiently and effectively collecting unpaid debts from consumers.
According to Linda Straub Jones, director of collections compliance at LexisNexis Risk Solutions, the greatest challenge facing the collections industry has been the Consumer Financial Protection Bureau’s (CFPB) requirement for “agencies of all sizes to implement a compliance management system.”
Keeping up with compliance is crucial for debt collectors, which means they require ongoing training.
Not only does ongoing training lower your chances of running into legal trouble, but better training means better collectors and higher collection rates.
Savvy debtors know that debt collectors have to obey a number of laws, and if one of those laws is broken, they won’t hesitate to sue.
So, avoid a potential lawsuit by ensuring any and all collection vendors you work with routinely train their collectors and stay up-to-date on compliance.
For example, all Brown & Joseph collectors undergo our unique training program, Brown & Joseph University.
We believe having a complete working knowledge of how the company operates better equips our employees in accomplishing their daily tasks.
At Brown & Joseph University, our collectors are educated on all aspects of the company, including items that directly and indirectly affect their responsibilities.
After they complete Brown & Joseph University, they are assigned to their managers for intense analysis of each client portfolio, where they learn all aspects to ensure that our client’s files are handled in accordance with their expectations, as well as Brown & Joseph’s expectations.
Additionally, all collectors both new and existing undergo monthly account audits performed by our management team.
The team reviews file notes and call recordings to ensure due diligence is consistently being performed.
Our management team also conducts weekly peer call reviews, where teams of collection specialists will listen to pre-selected recordings and provide constructive feedback.
Experienced credit professionals understand that past due receivables often necessitate the use of a collection agency to effect payment or resolution.
Even in a highly regulated industry, a company’s governance, risk and compliance program may not identify all the licensing requirements that a collection agency must observe.
Licensure is critical for both the collection agency AND the clients they represent. The negative effects an unlicensed agency can have on their client are numerous but the most obvious ones are exposed to potential nuisance litigation, financial liability and brand protection.
It is Brown & Joseph’s goal is to develop highly skilled employees who are motivated to succeed, not just by the competitive bonus structures, but by the amount of time and commitment our managers dedicate to helping them achieve their full potential.