Compliance is key to the trace process

The debt collection industry has done much over recent years to clean up its image and change the public perception of the industry as a whole. This has been done through a number of process changes, these changes are greatly reliant on compliance and through being compliant it is possible to enhance collections rates. Listed below are some key areas where firms need to be compliant:

·         Data protection – One key area is collectors must not discuss debt without confirming the debtor is the debtor, this can, in some cases can be hard to do.

·         Treating customers fairly – People who owe money should be treated as customers rather than debtors.

·         Misrepresentation – Collectors can’t make threats they have no intention of keeping and collectors can’t intimidate people in financial difficulties.

·         Communication – You must us language and wording that is simple to understand and not misleading in anyway.

·         Managing 3^rd Parties – Collectors must insure where possible that any 3^rd parties they employ are compliant with any rules they should be, for example are trace firms working to the new CSA guidance on trace?

·         Information and security – Collectors must store all data on collections and personal details in a security manner, plus they must delete it a timely manner.