CFPB “Junk” Fees Advisory & Impact on Collections
Collectors beware. With increased volume and consumer desperation comes increased risk from the collections function. Understanding recent litigation, the CFPB guidance on “junk” fees, and the sources of common collections mistakes is necessary to successfully manage collections risk. Don’t miss this lively, jam-packed webinar.
After This Webinar You’ll Be Able To:
- Break down the definition of debt collector under the Fair Debt Collection Practices Act
- Appreciate recent guidance and court rulings related to “pay to pay” or junk fees
- Distinguish between allowable collection fees and forbidden fees
- Perform a collections inventory and risk assessment
- Maximize recoveries and avoid unnecessary compliance risk in collections
What collector wouldn’t like to take a payment over the phone or get agreement on an electronic payment? And what institution would turn down the opportunity to charge a fee on a transaction that reduces delinquency? Unfortunately, these two areas of continuing concern for financial institutions are now the source of increasing risk. Recent developments have made it clear there is a storm brewing on both fronts and the limits on the definition of a debt collector under the FDCPA may be under attack, too! These are not easy days for collections or compliance professionals. Complaints, regulatory penalties, and class action litigation continue to negatively impact the ability to collect on delinquent loans. Now the CFPB has issued an advisory opinion affirming that federal law often prohibits debt collectors from charging “pay-to-pay” fees under the FDCPA and other federal rules. These charges, commonly described by debt collectors as “convenience fees”, are imposed on borrowers who want to make a payment in a particular way, such as online or by phone. Unfortunately, recent class action litigation has also scored a direct hit on so-called “junk fees.”
An effective collection process must include sound methods for communicating with borrowers, resolving the delinquency, recovering collateral on defaulted loans, and doing all of this while complying with an increasing variety of state and federal laws, rules, and regulations. Join collections veteran and regulatory compliance attorney, David Reed, as he details the steps to fully comply with recent guidance, while still maintaining an effective collections function.
Who Should Attend?
This session is designed for executives, internal auditors, lending staff, collections managers, collectors, compliance officers, and anyone involved in the collections and payment process.
- Regulatory guidance
- Sample collections inventory
- Sample collections risk assessment
- Employee training log
- Interactive quiz
- PDF of slides and speaker’s contact info for follow-up questions
- Attendance certificate provided to self-report CE credits
NOTE: All materials are subject to copyright. Transmission, retransmission, or republishing of any webinar to other institutions or those not employed by your agency is prohibited. Print materials may be copied for eligible participants only.
David A. Reed, JD — Reed & Jolly, PLLC
Attorney, author, consultant, and nationally recognized trainer David Reed is a partner in the law firm of Reed & Jolly, PLLC. He provides guidance to financial institutions on establishment and revision of policies and procedures, organizational compliance, collections, security, contractual agreements, regulatory matters, and corporate governance. His engaging speaking style has made him a nationwide lecturer on regulatory compliance, consumer lending, bankruptcy, and collections.
A former trial attorney and vice president and general counsel of a large regional financial institution, Reed is also a Certified Fraud Examiner. He is particularly known as an expert in the areas of operations, bankruptcy, and collections. He has trained state and federal examination staff on numerous issues, including BSA, ID theft red flags, SAFE Act, third-party contract management, and bankruptcy.
- $245 – Live Webinar Access
- $245 – OnDemand Access + Digital Download
- $350 – Both Live & On-Demand Access + Digital Download