December 9, 2011

EOS CCA Makes Compliance Presentation to Mass. Bursars’ Association

Some 80 attendees at the Massachusetts Bursar’s Association’s most recent meeting learned about Hot Topics in Compliance. Held on December 9 at Wellesley College, and sponsored by EOS CCA, this meeting addressed the issues that most affect collections. EOS CCA’s Susan Giordano, Vice President of Compliance and Risk Management, focused attention on recent legislation and issues affecting the collection industry, as well as those who collect at the college and university level.

Nearly half (48%)of complaints about Education collections are related to third party disclosure, and about a quarter (27%) are related to inaccurate credit reporting. Ms. Giordano explained the legislation that affects collections, including the Consumer Financial Protection Act of 2010, which created the Consumer Financial Protection Bureau (CFPB), which has authority over debt collectors and rule-making authority under the FDCPA. Also discussed was the Fair and Accurate Credit Transactions Act of 2003, a federal law and an amendment to the Fair Credit Reporting Act. The act allows consumers/students to request and obtain a free credit report once every twelve months from each of the three nationwide consumer credit reporting companies

Ms. Giordano addressed some of the conflicting provisions of the FDCPA, and provided suggestions about best practices, including the use of the ACA International Recommended FOTI -compliant message when leaving voicemails; having written policies and procedures in place that prohibit collectors from disclosing debts to third parties; and ensuring that there are reasonable written policies and procedures in place to detect, prevent, and mitigate the risk of identity theft. The ACA International Model Identity Theft Prevention program can be instrumental in minimizing the risk of identity theft, Giordano said. As she pointed out, training and employee awareness decreases internally caused breaches.

Giordano also addressed the responsibilities that furnishers of information such as collection agencies have when reporting to credit bureaus under the Fair Credit Reporting Act (FCRA).

“Colleges and Universities across the country are learning new ways to initiate successful compliance programs at their institutions. These programs are essential to mitigating risk and can positively impact life on campus among faculty, staff, administration and students, “ said Tom Walsh, Director, Strategic Development at EOS CCA. “At EOS CCA we are proud to be part of the solution and welcome the chance to present at conferences or one-on-one.”