Debt collection is a challenging task. There many debt collectors who follow abusive practices to collect a debt. A debt collection agency must follow the rules of the Fair Debt Collection Practices Act (FDCPA) of 2010. The clauses of the Act ensure that the debt collectors collect a debt from the creditors in an ethical manner. Before the Act, debt collectors used to follow many abusive and unfair debt practices that lead to a high number of bankruptcies and loss of jobs.
The list of debts included in FDCPA is medical bills, credit card debt, mortgages, student loans, and other household debt. If a debt collector fails to comply with the provisions given in the Act, penalties have to be paid by the debt collector. The clauses of the Act state that the debt collecting agency must update as per the compliances mentioned by the state. Every debt collecting agency must be licensed as per the state requirements. Cornerstone Support helps debt collection agencies to implement and maintain the licensing requirements.
A three-step process to maintain licensing requirements
Formulate a licensing strategy– It is the responsibility to create a licensing strategy regarding audits, consultations, and handling of gap reports. It involves the procedures that protect both the clients and the debt collection agencies.
Implementing the strategy– The debt collection agencies get help in fulfilling the requirements starting from the concept, new license, and approved certificate. Every debt collection agency’s nature of business is different from each other. Hence, they require customized services in maintaining licenses and adherence to state laws.
Maintaining the licenses- The team of debt collecting agency can solely rely on the services for implementing and maintaining the licenses. The license issued must be periodically renewed. The debt collecting agencies can also apply for full-service license renewal. You get help in keeping a track of renewal deadlines and procedures.