ACA International’s
Code of Ethics and
Code of Operations
Ethical Considerations for the
Credit and Collection Industry
© 2007 ACA International. All Rights Reserved.
“Particularly in this day and age of complex regulatory requirements,
companies err if they assume that their tone can be set by having
effective procedures and policies in place. Having effective procedures
and policies is certainly necessary, but it’s not sufficient. A company
must also have the right people in leadership positions, leaders who
are truthful, transparent, and fair, just as they expect their
companies and employees to be. That means leaders must not only
talk the talk, they must also walk the walk … a whole succession
of technological revolutions can’t do away with the need for character
or the ability to think and act ethically.”
Harvey Pitt, former Chairman of the SEC
© 2007 ACA International. All Rights Reserved.
What does “ethics” mean?
1 the discipline dealing with what is good and bad and
with moral duty and obligation
2 a: a set of moral principles: a theory or system of
moral values
b: the principles of conduct governing an individual or
a group
c: a guiding philosophy
d: a consciousness of moral importance
Source: Merriam-Webster’s Online Dictionary: http://mw1.merriamwebster.com/dictionary/Ethics
© 2007 ACA International. All Rights Reserved.
Why do businesses and industries
need ethics programs?

Avoid hidden costs associated with unethical
behavior

Increase productivity
© 2007 ACA International. All Rights Reserved.
Hidden costs of unethical behavior

Harms client relationships

Increases risks for scandal

Increases risk of employee fraud
© 2007 ACA International. All Rights Reserved.
Good business ethics can drive
productivity

Put the mission first, above personal
considerations

Use common language of values, to increase
mutual understanding

Make sure your organization lives up to your
employees’ values
© 2007 ACA International. All Rights Reserved.
Good business ethics can drive
productivity (cont.)

Make ethics decisions in groups

Develop a code of ethics and code of conduct,
and stand behind them

Fully support the ethics program and set the
example
© 2007 ACA International. All Rights Reserved.
Good business ethics can drive
productivity (cont.)

Foster transparency and trust

Strengthen your business ethics skills

Understand that no one’s perfect

Pay attention to the little things
Source: Josephson Institute Reports www.josephsoninstitute.org
© 2007 ACA International. All Rights Reserved.
ACA’s Code of Ethics

Last updated in 1997

July 25, 2007, ACA’s Board of Directors
approved the new Code of Ethics and Code of
Operations

Passage of the new code was accompanied by
the adoption of new Procedural Rules
© 2007 ACA International. All Rights Reserved.
Promote and encourage “the highest
level of integrity” within the industry

Cooperate and abide by the Association’s selfregulation efforts (Ethics Rule I.D)

Definition of Member
Adopt an internal code of conduct (Ethics Rule
II.A.8.)
 Place any ACA member on notice of any alleged
violation and seek to identify a solution (Ethics Rule
II.B.10)

© 2007 ACA International. All Rights Reserved.
Be fair and respectful to employees,
associates, competitors, customers, the
public and employers



Treat consumers with consideration and respect
(Ethics Rule II.A.1)
Communicate with consumers with honesty and
integrity (Ethics Rule II.A.2)
Avoid threatening or initiating collection litigation
on time barred debts (Ethics Rule II.A.6)
© 2007 ACA International. All Rights Reserved.
Commit to the development and use of
the highest standards and practices for
processing and handling consumer,
customer and competitor disputes



Cooperate with self-regulation efforts, complaint
resolution
Designate contact person “having sufficient
responsibility to deal with consumer complaints”
(Ethics Rule I.E)
Promptly respond to all complaints
(Ethics Rule I.F)
© 2007 ACA International. All Rights Reserved.
Validation Requests, Verification and
Disputes


Upon receipt of a written request for verification
from a consumer, suspend collection activities on
the account and provide debt verification, or
If agency chooses not to provide verification or is
unable to provide verification, cease collection
activity, remove derogatory credit items (if any)
from consumer’s credit record, and notify
client/credit grantor that collection activity was
terminated due to the inability to provide
verification of the debt (Ethics Rule II.A.3)
© 2007 ACA International. All Rights Reserved.
Validation Requests, Verification and
Disputes (cont.)

If requested by the consumer in writing, notify the
consumer that collection efforts have been
terminated by the member (Ethics Rule II.A.3.d)
© 2007 ACA International. All Rights Reserved.
Credit Reporting (Operations Rule II.B)
Obtain authorization of the creditor, forwarder or
party holding title to the account to perform credit
reporting
 Accurately report date of delinquency as required by
the FCRA
 Take reasonable steps not to report information that
is currently furnished by another data furnisher
 Delete information upon canceling and returning an
account

© 2007 ACA International. All Rights Reserved.
Purchasing Accounts

When purchasing accounts, seek to obtain access to
accurate and complete information and establish a
chain of title (Ethics Rule II.A.7)
© 2007 ACA International. All Rights Reserved.
Financial Integrity

Meet financial obligations (Ethics Rule I.G)

Make settlement with clients at least once each
calendar month (Operations Rule II.A.1)

Comply with contractual obligations to NACHA
(Ethics Rule II.A.5)
© 2007 ACA International. All Rights Reserved.
Prevention of Identity Theft

In instances of alleged identity theft, fraud or
mistaken identity, conduct a reasonable
investigation to determine the validity of the debt,
the identity of the obligor on the account and the
accuracy of the information in the possession of
the member (Ethics Rule II.A.4)
© 2007 ACA International. All Rights Reserved.
Data Security and Privacy

Use reasonable efforts to safeguard the
confidentiality, integrity and availability of consumer
information entrusted to the member’s possession
and control (Ethics Rule II.B.4)

Any healthcare account forwarded for collection
must be serviced according to a business associate
agreement between the Forwarder and Forwardee
(Operations Rule IV.X)
© 2007 ACA International. All Rights Reserved.
So what now?
Frequently Asked
Questions
© 2007 ACA International. All Rights Reserved.
Additional Questions

Please direct any questions you have to
ethics@acainternational.org.
© 2007 ACA International. All Rights Reserved.
These materials are not legal, accounting, or
consulting advice and should not be relied upon as
such. Attendees should consult with independent
legal, accounting or consulting professionals for
advice pertaining to their operation and unique
facts and circumstances.
ACA International
© 2007 ACA International. All Rights Reserved.