Consent and Revocation of Consent in the Debt Recovery Industry

Recently, an act was passed known as the Telephone Consumer Protection Act. This Act requires accounts receivable collection agencies to obtain and document contact consent, meaning, in other words, permission for them to contact consumers in an effort to collect on their debts. These same agencies also must document any revocations of consent when consumers ask to no longer be contacted and, of course, abide by these requests.   

Because of the laws in place, it is important for every collection agency to have clear policies and procedures on how it will document both consent and implied consent, as well as clearly worded contracts and other documents that protect them and prove that they had the right to make contact.

The same holds true when it comes to revocation of consent. In fact, debt collectors need to be even more careful when they receive revocation of consent since violating a request not to contact a debtor can lead to serious legal ramifications. Debt collectors must have a reliable system in place that allows them to track revocation of consent and, ideally, will alert them and employees anytime they accidentally attempt to contact a person who has revoked the right to contact them.

While debt collection agencies have a lot to keep track of, tracking consent and revocation consent is a necessary addition to the already long-list of tracking responsibilities. It may not be fun, but it is required, so debt collectors are encouraged to closely examine their current tracking systems to make sure they are as efficient and effective as they should be and to make changes as necessary, or, if they don’t currently have a tracking system in place, to create one right away!

Changing the Debt Collection Industry, Is it Possible?

It has never been more difficult than it is right now to be a accounts receivable collection agency. These days, more regulations exist than ever before, and there are a great many rules and laws related to compliance as well. Making matters worse, there are many regulatory agencies out there that seek to find and punish anyone who makes a mistake or breaks a regulation. There are also law firms that operate with the sole purpose of going after debt collectors who have made small, harmless mistakes. Fortunately, however, collection agencies do not have to stand for or put up with this harsh environment; instead, there are things they can do to create a fairer climate for themselves.

One thing that modern debt collectors and the companies for which they work can do is to join and/or support business associations that were created with the goal of stopping injustices in the debt recovery industries. Such associations include ACA International Incorporated, which is the trade association for credit and collection professionals. Debt collectors are encouraged to form or join a local chapter of this group or others like it and to be as involved as possible in making positive differences for the debt collection industry.

In addition to becoming involved with ACA International, debt collectors and collection agency services companies may also want to consider getting involved with other trade associations across the sectors in which they work. This might include medical sectors, telecom sectors, and more, and the greater the number of trade associations collectors can work and partner with, the better.

Debt collectors are also encouraged to contact state and federal legislators to voice their concerns and their proposals as to what can be done to change problems and issues within the debt collection community. A good way to really make a difference is to develop a work advocacy group that can discuss the issues affecting the industry and potential solutions and then put these into a large volume of letters to try and affect change.

Change is something that is desperately needed in the debt collection industry, but it’s not going to happen overnight. It will take lots of effort and concern from people who are involved in the industry, but if these people work together, it can happen!