Compliant Collections in Complicated Times

Presented by: Andy Zavoina              

  Customers who owe you money and are having a hard time will look for ways to avoid paying you. It is essential that your collectors follow prudent collection rules and guidelines to prevent giving these customers a way out that not only prevents collection, but could cost you more.

From 2004 to 2007 complaints over collection actions filed with the Federal Trade Commission have risen 25 percent. From 2007 to 2008 lawsuits over Fair Debt Collection Practices Act (FDCPA) violations have risen 43 percent to more than 5,400. And getting information on the internet, good and bad, on how to beat creditors is easier every day. You must have sound collection practices.

If you outsource your debt collections, loans or overdrafts, those collectors must follow the FDCPA. It is true that the FDCPA won't apply to you collecting your own debts, but aren't those good rules to follow? Wouldn't you believe that your collection program can be just as effective using the FDCPA as a guide? And wouldn't adherence to these rules demonstrate your banks willingness to go the extra step and avoid unnecessary complaints and lawsuits? Yes, yes, and yes. Even if the federal FDCPA doesn't apply to you, you may have a similar state law that does. It is always prudent to follow these rules.

Your collection program can influence your CRA rating in more than one way as well. Collections is ripe for fair lending risks. You must ensure that all customers are treated equally. We'll discuss how to do that. And in the recent CRA Q&A that was issued in January, regulators are encouraging banks to participate in foreclosure prevention programs. What are they and how these programs can help you will also be discussed.

What you will learn in this webinar:

• The basic rules of the Fair Debt Collections Practices Act
• Notices necessary for mortgage borrowers
• Notices necessary for your military borrowers (even if you don't know who they are)
• Why threatening innuendos cost you money
• What you can do to collect loans and resolve past dues
• What mortgage foreclosure prevention programs are all about.

Who should attend?

• Loan collectors
• Those who collect overdrafts
• Lenders who work debts in the early stages of collection
• Compliance officers and auditors

About the Speaker: Mr. Andy Zavoina, CRCM, is a consultant with the Glia Group, best known for its involvement with BankersOnline.com.

Andy has been in finance and banking for 22 years. Over 20 years were with a holding company with two Central Texas community banks that had $534 million in assets, 89 branches spanning Texas and nearly 500 ATMs. After starting in loan workouts, Mr. Zavoina has been a consumer, commercial and real estate lender and managed those departments as well as being the banks first Webmaster. He was responsible for compliance, management, auditing, and training for both banks.

Andy is a past Chairman of the American Bankers Association's Compliance Executive Committee. He was the 2003 recipient of the American Bankers Association's Distinguished Service Award for his involvement and accomplishments in the field of regulatory compliance management. He currently serves on the Editorial Advisory Board for the ABA's Compliance Magazine, Compliance Action magazine, is a member of the ABA's Compliance School Board and is a BankersOnline Guru. He also served on the Texas Bankers Association's Compliance Committee.

He is a graduate of the ABA National Commercial Lending School, National Compliance and National Graduate Compliance School and is a Certified Regulatory Compliance Manager with the Institute of Certified Bankers. He has written numerous articles and lectured on compliance, the use of the Internet and technology as a tool, as well as compliance in cyberspace to local, state and national associations. Internet policies and other compliance related programs are made available on his personal Web site.

This program was recorded in its entirety in May 2009. The CD-ROM includes program slides, materials (if available) and follow-up Q & A document.