Collector - July 2017 - 18

LEARN BY EXAMPLE
Several federal enforcement actions underscore regulators' level of interest in
credit reporting practices and the necessity of complying with Regulation V.
For example, a consent order between Interstate Auto Group Inc. and
Universal Acceptance Corporation (UAC) included allegations of failing to
establish and implement required written policies and procedures regarding the
accuracy and integrity of the information furnished to CRAs.
The CFPB cited UAC in particular for both not initially having any policies
and procedures regarding accuracy and integrity of furnished information as
required by Regulation V, and later creating policies and procedures that lacked
the appropriate elements in Appendix E.
Specifically, the CFPB noted that the company's policies and procedures
failed to address record maintenance, internal controls, training, investigation
methods and the use of Metro 2 reporting. One stipulation in the consent order
directed the hiring of an independent consultant experienced in consumer
reporting to develop policies and procedures that comply with Regulation V.
In another consent order between the Federal Trade Commission and Credit
Protection Association, LP (CPA), the FTC cited CPA for failing to establish and
implement reasonable written policies and procedures, failing to incorporate the
guidelines found in Appendix E, as well as failing to review its existing policies
and procedures periodically and update them as necessary.
In particular, the FTC alleged the company's policies failed to promote the
objective of conducting reasonable investigations of consumer disputes, did not
require the company to maintain records for a
reasonable time period and that employees
received insufficient training on dispute
handling. In the order, CPA stipulated to
an injunction permanently restraining
them from failing to comply with
Regulation V and Appendix E, as
well as being required to pay a
large fine.
As the CFPB and other
regulatory agencies focus on
compliance with Regulation
V, furnishers should take
the opportunity to review
their policies and procedures,
ensuring their nature, size,
complexity and scope are
appropriate to the company's
operations and that the guidelines
found in Appendix E are adequately
incorporated.

18

employee training, dispute management and
general business interactions.
Furnishers do not need to incorporate all
of the components into their policies and
procedures. Rather, the specific components
need to be incorporated as appropriate
to the nature, size, complexity and scope
of the furnisher's activities. If a furnisher
determines that a specific component does
not apply to the furnisher's business, it may
still make sense to note within the policy
why the component does not apply.
When reviewing the specific components,
asking questions about how the business
responds to these issues is one way to
consider how these components may or may
not pertain to the business as a whole.
For instance, one of the specific
components found in Appendix E requires
furnishers to have written policies
concerning the investigation of disputes. A
few helpful questions to consider for this
component include: Does the furnisher's
existing policy specifically address creditreporting disputes (not just disputes in
general)? Does it require completion of
investigations within the statutorily required
time frame?
Note that CFPB enforcement and
supervisory actions have cited violations
where furnishers failed to have policies that
distinguished between credit report disputes
and general disputes or complaints.
The guidelines also require furnishers'
policies and procedures to sufficiently
address document retention and record
maintenance. When addressing this
requirement, furnishers should think
about how the results of investigations are
documented and retained; what information
is sent to the consumer or CRA and where is
it retained; and what retention requirements
exist under state and federal laws.
In one enforcement action, the CFPB found
that a furnisher violated Regulation V, in part,
by failing to retain documentation related to
disputes as required by the regulation.
Policies and procedures must also address
employee training. Furnisher employees
who participate in credit reporting activities
can pose a compliance risk if they do

ACAINTERNATIONAL.ORG


http://www.ACAINTERNATIONAL.ORG

Table of Contents for the Digital Edition of Collector - July 2017

Upfront
Industry News
Best Practices
FYI
Collection Tips
What’s in Your Policy?
State Licensing Laws: What’s New and Trending
The Question of Rule 68
Calendar
Honor Roll
Healthcare Data at Risk
ACA Members Meet in D.C. to Advocate on Behalf of Industry
Fixing What’s Broken
Credit Listening Considerations
U.S. Supreme Court Hands Collection Industry a Win in ACA-Supported Case
Compliance
ACA SearchPoint
Last Word
Collector - July 2017 - Cover1
Collector - July 2017 - Cover2
Collector - July 2017 - 1
Collector - July 2017 - 2
Collector - July 2017 - Upfront
Collector - July 2017 - Industry News
Collector - July 2017 - 5
Collector - July 2017 - 6
Collector - July 2017 - 7
Collector - July 2017 - Best Practices
Collector - July 2017 - 9
Collector - July 2017 - FYI
Collector - July 2017 - 11
Collector - July 2017 - Collection Tips
Collector - July 2017 - 13
Collector - July 2017 - What’s in Your Policy?
Collector - July 2017 - 15
Collector - July 2017 - 16
Collector - July 2017 - 17
Collector - July 2017 - 18
Collector - July 2017 - 19
Collector - July 2017 - State Licensing Laws: What’s New and Trending
Collector - July 2017 - 21
Collector - July 2017 - 22
Collector - July 2017 - 23
Collector - July 2017 - The Question of Rule 68
Collector - July 2017 - 25
Collector - July 2017 - 26
Collector - July 2017 - 27
Collector - July 2017 - Calendar
Collector - July 2017 - Honor Roll
Collector - July 2017 - Healthcare Data at Risk
Collector - July 2017 - 31
Collector - July 2017 - ACA Members Meet in D.C. to Advocate on Behalf of Industry
Collector - July 2017 - 33
Collector - July 2017 - 34
Collector - July 2017 - 35
Collector - July 2017 - Fixing What’s Broken
Collector - July 2017 - 37
Collector - July 2017 - 38
Collector - July 2017 - 39
Collector - July 2017 - Credit Listening Considerations
Collector - July 2017 - 41
Collector - July 2017 - U.S. Supreme Court Hands Collection Industry a Win in ACA-Supported Case
Collector - July 2017 - 43
Collector - July 2017 - Compliance
Collector - July 2017 - 45
Collector - July 2017 - ACA SearchPoint
Collector - July 2017 - 47
Collector - July 2017 - Last Word
Collector - July 2017 - Cover3
Collector - July 2017 - Cover4
http://online.collector.com/collectormagazine/202007
http://online.collector.com/collectormagazine/202006
http://online.collector.com/collectormagazine/202005
http://online.collector.com/collectormagazine/202004
http://online.collector.com/collectormagazine/202003
http://online.collector.com/collectormagazine/202002
http://online.collector.com/collectormagazine/202001
http://online.collector.com/collectormagazine/201912
http://online.collector.com/collectormagazine/201911
http://online.collector.com/collectormagazine/201910/
http://online.collector.com/collectormagazine/201909/
http://online.collector.com/collectormagazine/201908/
http://online.collector.com/collectormagazine/201907/
http://online.collector.com/collectormagazine/201906/
http://online.collector.com/collectormagazine/201905/
http://online.collector.com/collectormagazine/201904/
http://online.collector.com/collectormagazine/201903/
http://online.collector.com/collectormagazine/201902/
http://online.collector.com/collectormagazine/201901/
http://online.collector.com/collectormagazine/201812/
http://online.collector.com/collectormagazine/201811/
http://online.collector.com/collectormagazine/201810/
http://online.collector.com/collectormagazine/201809/
http://online.collector.com/collectormagazine/201808/
http://online.collector.com/collectormagazine/201807/
http://online.collector.com/collectormagazine/201806/
http://online.collector.com/collectormagazine/201805/
http://online.collector.com/collectormagazine/201804/
http://online.collector.com/collectormagazine/201803/
http://online.collector.com/collectormagazine/201802/
http://online.collector.com/collectormagazine/201801/
http://online.collector.com/collectormagazine/201712/
http://online.collector.com/collectormagazine/201711/
http://online.collector.com/collectormagazine/201710/
http://online.collector.com/collectormagazine/201709/
http://online.collector.com/collectormagazine/201708/
http://online.collector.com/collectormagazine/201707/
http://online.collector.com/collectormagazine/201706/
http://online.collector.com/collectormagazine/201705/
http://online.collector.com/collectormagazine/201704/
http://online.collector.com/collectormagazine/201703/
http://online.collector.com/collectormagazine/201702/
http://online.collector.com/collectormagazine/201701/
http://online.collector.com/collectormagazine/201612/
http://online.collector.com/collectormagazine/201611/
http://online.collector.com/collectormagazine/201610/
http://online.collector.com/collectormagazine/201609/
http://online.collector.com/collectormagazine/201608/
http://online.collector.com/collectormagazine/201607/
http://online.collector.com/collectormagazine/201606/
http://online.collector.com/collectormagazine/201605/
http://online.collector.com/collectormagazine/201604/
http://online.collector.com/collectormagazine/201603/
http://online.collector.com/collectormagazine/201602/
http://online.collector.com/collectormagazine/201601/
http://online.collector.com/collectormagazine/201512/
http://online.collector.com/collectormagazine/201511/
http://online.collector.com/collectormagazine/201510/
http://online.collector.com/collectormagazine/201509/
http://online.collector.com/collectormagazine/201508/
http://online.collector.com/collectormagazine/201507/
https://www.nxtbookmedia.com