ARM Executives: Stay Ahead of Compliance

On October 24, a panel of compliance experts – including Rozanne Andersen of Ontario Systems, Ari Derman of Harris & Harris, Mike Frost of Malone Frost Martin, and Tim Collins of TrueAccord – joined Mike Ginsberg, president and CEO of Kaulkin Ginsberg Company, to review important topics and trends pertinent to the accounts receivable management (ARM) industry. The following are a few of the subjects discussed in the webinar, and a full recording of which can be found below:

The CFBP Closes Comment Period for Proposed Rulemaking

After 6 years since the CFPB’s initial release of their proposed rules/guidance, the end of this saga seems to finally be within sight. The first draft of the rulemaking was released in May, and the comment period – which allowed industry participants, consumer advocacy groups, and other stakeholders share their thoughts – ended on September 18 after a month-long extension from the original deadline. Now that the comment period is closed, the ball is in the CFPB’s court to incorporate the feedback it has received.

Text Messaging & Email Communications in Light of the CFPB Rules

The CFPB’s proposed rulemaking gives clarity on when and how collection agencies may use electronic communications – specifically text messaging and email. Generally, collectors may contact consumers through these channels as long as the consumer gives consent and has the opportunity to “opt out” of further communications. With answer rates dropping and call blocking becoming a bigger issue, in addition to costly litigation endeavors due to lack of regulatory clarity, reaching customers through these channels is critical and will become a major part of the collection ecosystem.

Validation Notices as Initial Communications

In addition to giving the “green light” to text and email, the proposed rules detail requirements regarding validation notice. As it stands, collection agencies are required to send consumers a written notice of certain information (e.g., the balance owed and their right to dispute) within five days of the initial communication. Importantly, the CFPB’s rulemaking allows these notices to be included in the body of an email sent as an initial contact point with consumers as long as certain conditions at met. If implemented, this could consolidate collectors’ communications with consumers, thereby saving time and money.

The comprehensive webinar – which covers the above topics as well ringless voicemail developments, innovative and disruptive technologies, and credit repair organization disputes – may be viewed below. For further information on compliance trends, you may purchase a copy of our extensive ARM industry report by contacting a member of our strategic advisory team at

Disclaimer: This article is not intended to be, nor should be used as, legal advice. Please consult your compliance team before making strategic decisions regarding your company’s compliance, legal, regulatory and/or other business needs.