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-- WITH PHOTO -- TO NATIONAL EDITORS:
ACA International Responds To CFPB's Report On Debt Collection
Complaints
MINNEAPOLIS, March 20, 2014 /PRNewswire-USNewswire/ -- ACA
International, the largest trade group for the third-party debt
collection industry, today responded to the Consumer Financial
Protection Bureau's (CFPB) annual report on debt collection
complaints. ACA also conducts its own analysis of the publicly
available data to gain insights that will help improve customer
service and the future collection of consumer debts.
"As an industry that takes complaints and their resolution with
consumers very seriously, the CFPB's report offers helpful perspective
but isn't valuable for setting public policy. As important as these
raw data are, it seeks to justify the CFPB's existence but falls short
in looking at the underlying causes that better explain this
information," ACA International CEO Pat Morris said. "We will continue
to conduct our own quarterly analysis of the data and encourage
consumers to communicate with debt collectors because avoiding contact
does not make a debt disappear."
Among the key points ACA has identified as missing from the CFPB's
analysis, includes:
-- The CFPB's definition of a complaint is very subjective. While a
consumer may not like something (such as being contacted about a debt
or receiving multiple calls) it does not mean that the collector
actually did anything wrong. Neither the CFPB nor the FTC investigates
these complaints as to whether a complaint actually violates the
law. Painting the collection of consumer debts with a broad brush and
then alluding it ties to bad behavior paints an inaccurate picture of
an extremely necessary, yet sometimes uncomfortable, activity. ACA
advocates that the CFPB adopt a more meaningful definition of what
constitutes a complaint that is limited to consumer allegations of
wrongful conduct and does not include the amorphous concept of general
consumer dissatisfaction outside of wrongful conduct.
-- Some factors that contribute to being contacted about a debt they
may not owe are the mobile nature of society and the unwillingness of
most consumers to communicate with debt collectors. Further, federal
law prohibits disclosure of specific information about a debt until a
consumer's identity has been verified. Hearing from a collection
agency that they don't know and never had interaction with can often
be confusing.
-- A closer look at concerns over call frequency leaves out discussion
of a very significant "catch-22," which is a significant underlying
factor prompting debt collectors to call more often instead of leaving
voice mail messages. Under the Fair Debt Collections Practices Act
(FDCPA) a debt collector can not divulge the existence of a consumer
debt to anyone but the consumer or their attorney, and it also says
that a debt collector must identify themselves. There is currently no
safe harbor language for leaving a voice mail that assures a debt
collector can comply with the FDCPA. ACA is calling on the CFPB for
the creation of safe harbor language to allow collectors to leave
voice mail messages that comply with FDCPA.
Based on ACA's review of the publicly available data from the CFPB,
96% of complaints are responded to in a timely manner. In addition
94% of complaints are "closed" in some manner. "We believe that when
given the chance, debt collectors do want to work with consumers to
resolve their concerns," Morris said.
ACA International is the comprehensive, knowledge-based resource for
the credit and collection industry. Founded in 1939, ACA brings
together nearly 5,000 members in the United States and abroad, and
their more than 300,000 employees, including third-party collection
agencies, asset buyers, attorneys, creditors and vendor affiliates.
Click here to access ACA's white paper on debt collection complaints.
Contact: Mark Schiffman, PR Director Tel. (952) 259-2124 or
schiffman@acainternational.org
Logo - http://photos.prnewswire.com/prnh/20101018/ACALOGO
SOURCE ACA International
-0- 03/20/2014
/Photo: http://photos.prnewswire.com/prnh/20101018/ACALOGO
/Web Site: http://www.acainternational.org
CO: ACA International; Consumer Financial Protection Bureau; CFPB
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0000 03/20/2014 22:50:00 EDT http://www.prnewswire.com
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