FDCPA
What is the purpose of the FDCPA
To protect consumers against abusive debt collection practices
What is OTP
One Time Passcode
How many days is the grace period for credit cards and loans?
3 days- Credit Cards
10 days- Loans
Give me Two Examples of an Acceptable Arrangement
-Within the same month
- Full Payment
- Before 30 Days Past Due
-Actually Attainable for the Member
If a member submitted a skip a pay in April 2024, when is the next time they can submit a sap?
January 2025
What does the FDCPA stand for?
Fair Debt Collection Practices Act
What is the security procedure for an outbound call?
Verify the member's name
At what dpd does VyStar start offsetting and locking accounts that are delinquent?
15 days past due
What is an inbound call and what is an outbound call? What are the differences and similarities between the two?
Inbound call = calls coming in
Outbound call= calls made to the member
Differences: OB calls need a mm, IB need more verification
Similarities: Both require call back consent, contact information to be verified, reason for delinquency, and discussing the delinquent account.
What are the requirements for a due date change? (2 items)
-Due Date must bring the member current
-Must be within the same month
What are three things debt collectors cannot do?
What is the full low risk security process
1) CW
2) (if no cw) OTP,
3) (if no otp) Two security questions
When does VyStar report to the credit bureau occur and what verbiage can we never use when discussing cbr?
30 days or more past due
We may Never use absolute language.
We must use verbiage such as "at risk of"
What is the verification/regulation process that will occur when a third party is on the line and the member later joins the call.
Step 1: We must verify the member's name
Step 2: We must inform the member that the call is being recorded and if they are past due we need to inform them that the call is due to purposes of debt collection. (Mini Miranda + Dual Consent)
Step 3: Verify the member
Step 4: Ask for consent to speak and discuss with the third party. (Member must stay on the line)
What are the requirements for a skip a pay (4 items)
-No CPI
-Within grace 0-10 days past due
-No prior skip a pay within the Calander year
-At least 6 payments made since origination
What is the fdcpa rule that collectors must abide by?
7 contacts within 7 days but only 1 conversation (7-7-1)
What is the full high risk security procedure?
1) CW + 2 security questions
2) OTP + 2 security questions
When does CPI charge and how much is the fee?
CPI is charged every 28 days and has a flat fee of $180
Jane calls in to discuss her delinquent account. Jane has a CW on file (Bubbles) and when asked Jane states, "I think the codeword is Bubble". List the next step in the verification process.
Verbiage such as I think or maybe or providing an incorrect answer to the cw would constitute hrv.
OTP + 2 security questions
Then we may offer to update or change the codeword. If the member does not wish to update/delete then we proceed on the call as normal.
What are the requirements for a deferment? (5 items)
-No CPI
-12 months of payments on the loan without payment assistance
-11-60 days past due
-Must have active verifiable income
-Must allow a credit pull to be completed (DTI purposes)
Jane has a delinquent auto loan with VyStar Credit Union. She has three phone numbers on file result in a voicemail. We call 3 numbers on Monday, 3 on Wednesday and 1 on Friday. When is the next time we can leave 7 contact attempts all at once.
Friday
The following Monday 3 calls will be allowed, on Wednesday 3 calls will be allowed, and once Friday comes around you will have 1 more be allowed. 3 + 3+ 1= 7
Name the three transactions that require a high-risk security verification
CW incorrect
CBP over 5k
Member wanting the account number
What is a 218 letter? When is it sent out? What is the member at risk of once sent out?
218 letter is a letter sent out letting the member know that there is a delinquent amount owed on the collateral loan. If the delinquent amount is not paid by the expiration date, then the member is at risk of repo. This letter is sent out at day 61
Jack and Jill are joint on an auto loan together. Jack calls in regarding a voicemail he received. We verify Jack by his cw on file and proceed with the call. Jack later adds Jill to the call. What must we do to verify Jill successfully and stay in compliance with the FDCPA.
We must read the MM to Jill and verify by either cw, otp or 2 security questions
Bob calls in on October 4th, 2025, to discuss his (19 days past due) past due auto bill from September 15th, 2025. Bob wants to know what modifications he has available. After researching his account, you see that Bob had a skip a pay requested in December 2024 and covered December 2024, and January and February 2025. What modification is he available for.
None, the member can't do a due date change since the payment is not within the same month, The member is past the grace period so he can't do a sap and the member hasn't had 12 payments without assistance to qualify for a deferment.
If the member closes his September bill today, then he can apply for a skip a pay, but a payment is needed prior.