New rules may include restrictions on how a debtor is contacted and require accurate and valid documentation of debts.
This means a handshake is essentially a gift and a text message may be legally harassment. In general, original Creditors may be subject to the same rules as third party debt collection agencies.
Why the changes? It seems, not surprisingly, that consumers complain more about debt collection than other financial transactions. Considering how many debtors seem to think they don’t owe a bill even if they signed a contract, the results should be expected.
The agency is particularly interested in providing debtors with clear and unambiguous descriptions of all the documentation behind their debt, making sure the debtor is informed of their legal rights. In addition, they are evaluating the impact of reporting medical debt to credit reporting agencies such as Experian, Trans Union and Equifax.
In general, the new rules should be easy to follow. You should start reviewing your documentation to make sure it is clear and legally binding. This should include an unambiguous link to the person or company who signs your contract. Reference checks are strongly recommended.
Understanding debt collection and background screening best practices can save your business big money. Building up front applicant screening into your business processes costs you very little, but saves you so much in the end. If you haven't already, partner with a full service debt collection and applicant screening company to guide your business to a place of security and prosperity.
ABOUT EXECUTIVE CREDIT MANAGEMENT, INC.
Executive Credit Management is a full-service Debt Collection and Applicant Screening agency with over 20 years experience located in Central New Jersey. We provide excellent service in the following areas: Employment Screening, Business Screening, and Tenant Screening. Executive Credit Management belongs to a number of Skip Tracing databases and offers services to help locate and confirm the current address of missing debtors. Other services provided are: litigation evaluation on all lawsuit decisions, improvement of the quality of the applicant data, Lawsuit Monitoring, Handling of Debtor Disputes. Executive Credit Management features the best Call Monitoring System in the Debt Collection industry.