TM
Obtaining Optimum
Compliance Performance
Foundational Training on ACA’s
Professional Practices
Management System (PPMS TM)
© 2014 ACA International.
All Rights Reserved.
Obtaining Optimum
Compliance Performance
This information is not to be construed as legal
advice. Legal advice must be tailored to the
specific circumstances of each case. Every effort
has been made to assure that this information is
up-to-date as of the date of publication. It is not
intended to be a full and exhaustive explanation
of the law in any area. This information is not
intended as legal advice and may not be used as
legal advice. It should not be used to replace the
advice of your own legal counsel.
© 2014 ACA International.
All Rights Reserved.
TM
Course Outline
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Federal Compliance
State Law Compliance
Compliance Resources
© 2014 ACA International.
All Rights Reserved.
Areas to Examine
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Federal Compliance
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Fair Debt Collection Practices Act (FDCPA)
Fair Credit Reporting Act (FCRA)
Bankruptcy
Gramm-Leach-Bliley Act (GLBA)
Telephone Consumer Protection Act (TCPA)
Health Insurance Portability and
Accountability Act (HIPAA)
Servicemembers Civil Relief Act (SCRA)
© 2014 ACA International.
All Rights Reserved.
Federal Compliance - FDCPA
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FDCPA Areas of Risk
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Communications
Disputes
Prohibited Practices
© 2014 ACA International.
All Rights Reserved.
FDCPA Areas of Risk:
Communications
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Communications with Consumer
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Oral
Written
Electronic
Communications with Third Parties
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Authorized Third Parties
Unauthorized Third Parties
© 2014 ACA International.
All Rights Reserved.
FDCPA Areas of Risk:
Communications with Consumer
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Oral Communications
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Mini-Miranda requirements
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Overshadowing
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Element 8 – Process control
Element 11 – Identification of non-conformity
Hours allowed to contact
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Element 5 – Purchasing
© 2014 ACA International.
All Rights Reserved.
FDCPA Areas of Risk:
Communications with Consumer
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Written Communications
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Validation Notice
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Verification
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Element 13 – Handling, Storage, Preservation, & Delivery
Mini-Miranda
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Element 15 – Internal Management Audits
Element 9 – Inspection & Testing
Overshadowing
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Element 12 – Corrective Action, Preventive Action &
Continuous Improvement
© 2014 ACA International.
All Rights Reserved.
FDCPA Areas of Risk:
Communications with Consumer
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Electronic Communications
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E-mail
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Web site
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Element 8 – Process Control
Element 13 – Handling, Storage, Preservation,
& Delivery
Caller ID
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Element 3 – Review of Client Issues
© 2014 ACA International.
All Rights Reserved.
FDCPA Areas of Risk:
Communications with Third Parties
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Authorized Third Parties
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Spouse (sometimes)
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Attorney for consumer
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Element 14 – Management of Records/Data
Element 7 – Data Identification & Traceability
Parent of minor consumer (sometimes)
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Element 16 - Training
© 2014 ACA International.
All Rights Reserved.
FDCPA Areas of Risk:
Communications with Third Parties
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Authorized Third Parties (cont’d)
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Guardian
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Executor/administrator
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Element 6 – Control of Client & CustomerSupplied Data
Element 13 – Handling, Storage, Preservation,
& Delivery
Attorney for creditor or debt collector
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Element 8 – Process control
© 2014 ACA International.
All Rights Reserved.
FDCPA Areas of Risk:
Communications with Third Parties
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Unauthorized Third Parties
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Consumer Credit Counseling Services
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Power of Attorney
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Element 12 – Corrective Action, Preventive
Action & Continuous Improvement
Element 16 – Training
Employers and Others
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Element 14 – Management of Records/Data
© 2014 ACA International.
All Rights Reserved.
FDCPA Areas of Risk:
Disputes
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Oral Disputes
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Element 2 – Management Systems
Written Disputes
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Element 6 – Control of Client & CustomerSupplied Data
© 2014 ACA International.
All Rights Reserved.
FDCPA Areas of Risk:
Prohibited Practices
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Section 806 – Harassment or abuse
Section 807 – False or misleading
representations
Section 808 – Unfair practices
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Element 8 – Process Control
Element 11 – Identification of non-conformity
Element 12 – Corrective Action, Preventive Action
& Continuous Improvement
Element 16 – Training
© 2014 ACA International.
All Rights Reserved.
Federal Compliance - FCRA
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FCRA Areas of Risk
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Data Furnishers
Disputes
Permissible Purpose
Identity Theft
© 2014 ACA International.
All Rights Reserved.
FCRA Areas of Risk:
Data Furnishers
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Date of delinquency
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Accurate and complete information
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Element 6 – Control of Client & CustomerSupplied Data
Element 4 – Document and Data Control
Report disputes
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Element 12 – Corrective Action, Preventive
Action & Continuous Improvement
© 2014 ACA International.
All Rights Reserved.
FCRA Areas of Risk: Disputes
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Disputes from Consumer
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Written
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Oral
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Element 13 – Handling, Storage, Preservation,
& Delivery
Element 7 – Data Identification & Traceability
Disputes from CRA
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Element 8 – Process Control
© 2014 ACA International.
All Rights Reserved.
FCRA Areas of Risk:
Permissible Purpose
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Review or Collection of an Account
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Employment Purposes
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Element 9 – Inspection & Testing
Element 14 – Management of
Records/Data
Legitimate Business Need
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Element 11 – Identification of nonconformity
© 2014 ACA International.
All Rights Reserved.
FCRA Areas of Risk:
Identity Theft
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Required Consumer Notices
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Element 9 – Inspection & Testing
Duty to Update CRA(s) of ID theft
notice
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Element 8 – Process Control
© 2014 ACA International.
All Rights Reserved.
Federal Compliance Bankruptcy
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Bankruptcy Areas of Risk
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Automatic Stay
Discharged Debt
© 2014 ACA International.
All Rights Reserved.
Bankruptcy Areas of Risk:
Automatic Stay
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Actual vs. Constructive Notice
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Element 6 – Control of Client & CustomerSupplied Data
Ceasing Collection Activity
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Element 16 – Training
© 2014 ACA International.
All Rights Reserved.
Bankruptcy Areas of Risk:
Discharged Debt
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Cease Collection Attempts
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Element 8 – Process Control
Update Credit Reports
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Element 12 – Corrective Action, Preventive
Action & Continuous Improvement
© 2014 ACA International.
All Rights Reserved.
Federal Compliance - GLBA
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GLBA Areas of Risk
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Privacy Rule
Safeguards Rule
© 2014 ACA International.
All Rights Reserved.
GLBA Areas of Risk: Privacy
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Privacy Notice and Opt-Out Policy
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Element 7 – Data Identification and
Traceability
Annual Notice
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Element 14 – Management of
Records/Data
© 2014 ACA International.
All Rights Reserved.
GLBA Areas of Risk:
Safeguards
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Develop, Implement and Maintain
Written Security Program
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Element 2 – Management System
Contract Requirements
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Element 11 – Identification of nonconformity
© 2014 ACA International.
All Rights Reserved.
Federal Compliance - TCPA
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TCPA Area of Risk
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Use of ADADs/Prerecorded Messages
© 2014 ACA International.
All Rights Reserved.
TCPA Areas of Risk:
ADADs/Prerecorded Messages
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Identification Requirements
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Element 10 – Inspection & Test Status
Calling Wireless Numbers
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Element 5 – Purchasing
© 2014 ACA International.
All Rights Reserved.
Federal Compliance - HIPAA
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HIPAA Areas of Risk
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Privacy Rule
Security Rule
© 2014 ACA International.
All Rights Reserved.
HIPAA Areas of Risk:
Privacy Rule
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Covered Entity vs. Business Associate
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Business Associate Agreements
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Element 3 – Review of Client Issues
Minimum Necessary Requirement
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Element 2 – Management System
Element 7 – Data Identification and Traceability
Commingling Data
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Element 4 – Document and Data Control
© 2014 ACA International.
All Rights Reserved.
HIPAA Areas of Risk:
Security Rule
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Develop and Implement Security
Measures
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Element 2 – Management Systems
Maintain and Monitor Security Measures
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Element 9 – Inspection & Testing
© 2014 ACA International.
All Rights Reserved.
Federal Compliance –
SCRA Areas of Risk
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Adverse Action
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Interest Rates
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Element 16 – Training
Element 7 – Data Identification & Traceability
Legal Actions and Statutes of Limitations
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Element 11 – Identification of non-conformity
© 2014 ACA International.
All Rights Reserved.
Areas to Examine
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State Compliance
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Areas of Risk
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License or Registration
Bond requirements
Communication requirements/restrictions
Trust account requirements
© 2014 ACA International.
All Rights Reserved.
State Areas of Risk:
License or Registration
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Main and/or branch office
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Collection Manager
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Element 5 – Purchasing
Element 3 – Review of Client Issues
Individual Collectors
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Element 13 – Handling, Storage,
Preservation & Delivery
© 2014 ACA International.
All Rights Reserved.
State Areas of Risk:
Bond Requirements
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Statutory
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Element 5 – Purchasing
Client Contract
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Element 3 – Review of Client Issues
© 2014 ACA International.
All Rights Reserved.
State Areas of Risk:
Communication Requirements/Restrictions
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Hours to contact
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Frequency of contacts
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Element 14 – Management of Records/Data
Contacts at PoE
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Element 13 – Handling, Storage, Preservation &
Delivery
Element 16 – Training
Recording conversations
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Element 9 – Inspection & Testing
© 2014 ACA International.
All Rights Reserved.
State Areas of Risk:
Communication Requirements/Restrictions
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Adding fees/interest
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Element 6 – Control of Client & CustomerSupplied Data
Special text requirements
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Element 9 – Inspection & Testing
© 2014 ACA International.
All Rights Reserved.
State Areas of Risk:
Trust Account Requirements
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Commingling funds
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Element 14 – Management of
Records/Data
Remittance
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Element 8 – Process Control
© 2014 ACA International.
All Rights Reserved.
Areas to Examine
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Compliance Resources
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ACA website
Campus ACA™
ACA International Publications
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FDCPA Guide
FCRA Guide
State Guide
Statutory Penalties Guide
HIPAA Implementation Guide and DVD
© 2014 ACA International.
All Rights Reserved.
Thank You!
ACA International
Compliance Department
http://www.acainternational.org/compliance
© 2014 ACA International.
All Rights Reserved.