"The Power of Expertise: Oversight Perfected"
"The Power of Expertise: Oversight Perfected"
Have you ever bought a toy in a big, impressive box, thinking it’s ready to go, only to open it and find a million tiny pieces and overly complicated instructions? My approach? Grab some superglue, glance at the pictures, and call it a day. My husband, on the other hand, reads every single word of the directions, studies the diagrams, and meticulously checks if all the parts are accounted for. […]
As the new year begins, it is a perfect opportunity for collection and recovery managers to evaluate and refine their vendor oversight strategies. In an era of evolving regulations, heightened consumer expectations, and advanced technologies, effective oversight extends beyond mere compliance and security. It is certainly about compliance and security, please do not misunderstand my thoughts, but adding elements of operational excellence will ensure you are driving the right results. […]
As an auditor, I’ve had the unique opportunity to observe the dynamics between creditors and collection agencies. What I’ve learned is this: being a good client isn’t just about offering the highest commission rate. If you want to build strong, mutually beneficial relationships with collection agencies and ensure that your accounts receive the attention they deserve, there are several factors to consider. How to Be a Better Client Being a […]
As an employee of a major credit issuer, I led collection teams responsible for recovering debts for the Bank. The Bank maintained that these teams were not classified as debt collectors under the FDCPA. However, our collection strategy adhered to FDCPA guidelines to ensure fair treatment of consumers. At the time, I believed that transitioning to full compliance with the FDCPA, if required, would be relatively straightforward for our organization. […]
Managing a team of 10 people can feel like herding cats—so imagine the complexity of overseeing more than 400 repossession agents. Ensuring compliance, efficiency, and accountability at this scale requires more than just good intentions. It demands strategic oversight, the right tools, and full collaboration between creditors, national forwarders, and agents. But who ultimately holds the key to compliance? The answer is clear: creditors. While national repossession forwarders play a […]
The Consumer Financial Protection Bureau (CFPB) is requesting public comments as it prepares a proposed rule to address issues surrounding coerced debt and its impact on credit reporting. The initiative aims to amend certain provisions within Regulation V, which implements the Fair Credit Reporting Act (FCRA), to better protect consumers. This request, known as an advance notice of proposed rulemaking (ANPR), focuses on updating the definitions of “identity theft” and […]
My husband is a life-long Detroit Lions fan, and as season ticket holders, we’ve witnessed our fair share of heartbreak and triumph. At a recent game against the Buffalo Bills, as I watched the strategy and execution unfold on the field, it struck me—being part of an NFL team isn’t so different from auditing collection agencies and repossession forwarders. Think about it: Creditors are the offense, driving the action and […]
When auditing collection agencies or repossession forwarders, one common question arises: “Do I need a statistically valid sample?” The short answer: No. While a statistically valid sample can be useful in some contexts, it’s not always practical or necessary in this heavily regulated industry. Instead, a categorical sampling approach often proves more effective. Here’s why. The Case for Statistical Sampling A statistically valid sample is typically calculated using tools like […]
The Consumer Financial Protection Bureau (CFPB) has finalized a significant enforcement action against Lexington Law and CreditRepair.com, two of the country’s largest credit repair companies. In August 2023, the CFPB obtained a $2.7 billion judgment against these companies for violating federal consumer protection laws. By December 2024, the CFPB began distributing $1.8 billion to 4.3 million consumers from its victims relief fund, representing the largest distribution in the agency’s history. […]
Year-end goal-setting can be a tricky time, especially as a leader of a collections team. As the bank mapped out goals for the upcoming year, objectives like contractual losses or delinquency levels inevitably made their way onto the list for collections leadership. While these goals are undeniably important for the bank’s overall success, I often struggled to fully support them as key performance targets for collection supervisors and managers. In […]