The ripples of COVID-19 have extended into collections, adding more complexity and compliance concerns. New legislation, borrower desperation, consumer protection, widespread unemployment, and other factors have increased the opportunities for missteps and ripened the ever-present risk. How are you going to address these issues?
- Fine tune a virtual collections process that addresses productivity and preparedness
- Conduct effective credit reporting in accordance with the new CARES Act and bankruptcy guidelines
- Make loan modifications that comply with the Fair Credit Reporting Act and disclosure requirements
- Manage foreclosures, evictions, and repossessions – what’s in your state?
- Avoid communications landmines – TCPA and ADA issues
Even during the best of times, collection is a tricky proposition. An effective collection process must include sound communication methods with borrowers, resolve delinquencies, and recover collateral on defaulted loans, all while complying with an increasing variety of state and federal laws, rules, and regulations. In addition, the collections “mix” includes a growing group of ready-to-pounce consumer protection attorneys.
Now COVID-19 has brought untold ramifications, shutdowns, legislation, and more. It won’t be long before the stimulus money, modifications, forbearances, and other rescue options dry up. An avalanche of defaults is coming your way!
Increased volume and borrower desperation bring increased risk from the collections function. Understanding the litigation areas and sources of common collection mistakes is necessary to successfully manage risk during the pandemic. Better yet, that understanding will allow for more robust efforts to assist troubled borrowers! Learn to navigate the rapidly changing landscape of COVID-related collection risk and increase recoveries.
David A. Reed, JD Reed and Jolly, PLLC
Attorney, author, consultant, and nationally recognized speaker, 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, David 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.