FastBucks’ Collections Procedure 2014 Fair Debt Collection Practices Act (FDCPA)

FDCPA BASICS The Fair Debt Collection Practices Act (FDCPA), is a consumer protection amendment, establishing legal protection from abusive debt collection practices, to the Consumer Credit Protection Act, as Title VIII of that Act. The statute's stated purposes are: to eliminate abusive practices in the collection of consumer debts, to promote fair debt collection, and to provide consumers with an avenue for disputing and obtaining validation of debt information in order to ensure the information's accuracy. The Act creates guidelines under which debt collectors may conduct business, defines rights of consumers involved with debt collectors, and prescribes penalties and remedies for violations of the Act.

FastBucks’ Collections Procedure 2014 The Fair Debt Collection Practices Act (FDCPA) purposes include: eliminating abusive practices in the collection of consumer debts, and promoting fair debt collection

COMMUNICATING WITH CUSTOMERS IN CONNECTION WITH DEBT COLLECTION Disclosing Identity. All calls to a customer must include a meaningful disclosure of the identity of the caller. DO: May I speak with Mr. Doe, please? [Person answers: This is Mr. Doe.] Good Afternoon, Mr. Doe, this is Jane from FastBucks. DON’T: Hey, is John there? This is Jane.

COMMUNICATING WITH CUSTOMERS IN CONNECTION WITH DEBT COLLECTION Disclosing Purpose of Contact. All contacts with customers (oral or written) must disclose that the purpose of the contact is to attempt to collect a debt and that any information obtained will be used for that purpose. (This is called a mini-Miranda warning.)

COMMUNICATING WITH CUSTOMERS IN CONNECTION WITH DEBT COLLECTION Disclosing Purpose of Contact. All of our letter and email templates on the Legal Resources tab have been revised to include language similar to the following: BE ADVISED THAT THIS COMMUNICATION IS MADE FOR THE PURPOSE OF COLLECTING A DEBT AND ANY INFORMATION OBTAINED MAY BE USED FOR THE PURPOSE OF COLLECTING THE DEBT.

COMMUNICATING WITH CUSTOMERS IN CONNECTION WITH DEBT COLLECTION Disclosing Purpose of Contact. All of collections calls should include language similar to the following: "Hello, this is Jane from FastBucks. I am attempting to collect a debt. Information obtained during this call will be used for the purpose of debt collection."

COMMUNICATING WITH CUSTOMERS IN CONNECTION WITH DEBT COLLECTION Time and Place. Unless the customer or a court has already given permission, no communication with a customer may occur— before 8 a.m. or after 9 p.m. in the customer’s time zone, or at any place that is inconvenient to the customer.

COMMUNICATING WITH CUSTOMERS IN CONNECTION WITH DEBT COLLECTION Method of Contact. No postcards may be used to communicate with customers regarding a debt. Text messages are subject to the same general rules as telephone calls and other communications.

COMMUNICATING WITH CUSTOMERS IN CONNECTION WITH DEBT COLLECTION Customer’s Attorney. If a Company employee knows that a customer has retained an attorney to handle the debt and can easily determine the attorney’s name and address, the employee must direct all contacts to that attorney, unless— the attorney is unresponsive, or the attorney agrees to allow direct communication with the customer. (Debt consolidation companies are complicated. See slides later in presentation.)

COMMUNICATING WITH CUSTOMERS IN CONNECTION WITH DEBT COLLECTION Debt Consolidation Companies. If a Company employee receives a letter from a debt consolidation company on behalf of a customer, the employee should send the letter to Corporate to respond. Corporate will review the letter and either: Direct employee to provide the documentation requested; or Send a letter to the customer requesting additional documentation, if necessary. (Please see the letter language on the next slide.)

COMMUNICATING WITH CUSTOMERS IN CONNECTION WITH DEBT COLLECTION Debt Consolidation Companies. The employee cannot speak to the debt consolidation company until it receives permission to do so from Corporate. We do not want to unintentionally disclose confidential information to an unauthorized third party. If you receive a letter from a debt consolidation company: Forward the letter to Corporate. Wait to receive permission to speak with the debt consolidation company.

COMMUNICATING WITH CUSTOMERS IN CONNECTION WITH DEBT COLLECTION Debt Consolidation Companies. (FOLLOW UP LETTER TO CUSTOMER ) FastBucks received the enclosed correspondence from the above mentioned debt consolidation company requesting that we either: (1) consider a settlement offer on your behalf; and/or (2) cease collection efforts for your overdue loan. FastBucks is in a highly regulated industry that protects consumer information from third parties. As such, we voraciously maintain the privacy of our customers. We are not willing to compromise your privacy by providing this company with your personal information without additional information. These types of requests may be a ruse to fraudulently gain confidential information about you. Fraud is prevalent—particularly in internet transactions. If you are working with a debt consolidation company, please provide confirmation that you have authorized the debt consolidation company named above to obtain information about your loan and communicate with FastBucks on your behalf—a hand-signed, notarized Power of Attorney or some other form of written and signed communication confirming that you have hired the company to act as your legal representative. If the debt consolidator is a law office, please provide the assigned attorney’s name and bar number. If FastBucks does not receive the additional proof of the legal representation by the debt consolidation company listed above, we will resume our efforts to contact you directly regarding the outstanding loan balances owed. Please be advised that even if FastBucks does receive the additional proof of legal representation, we are not obligated to enter into any agreement with the consolidation company to settle your debt. FastBucks prefers not to work with third party debt consolidations companies. FastBucks makes a concerted effort to work directly with our customers to make payment arrangements that are mutually beneficial.

CEASING COMMUNICATION WITH THE CUSTOMER Cease and Desist Letter. When a customer refuses, in writing, to pay a debt or requests that further communications cease, all further communication must cease, except to advise the customer that— The collection effort is being stopped, The Company may pursue certain specified remedies that it ordinarily invokes, or If true, the Company will pursue a specific remedy.

CEASING COMMUNICATION WITH THE CUSTOMER If FastBucks receives a “cease and desist” letter from the customer, we can no longer reply that the FDCPA does not apply to lenders attempting to collect their own debt.

CEASING COMMUNICATION WITH THE CUSTOMER Instead, you must remove the customer from your call queue and notate the file to “CEASE ALL COLLECTION CALLS PURSUANT TO CUSTOMER LETTER SENT ON MM/DD/YYYY.”

CEASING COMMUNICATION WITH THE CUSTOMER Send the customer’s letter to Corporate and a response letter will be sent to the customer stating that: The collection effort is being stopped, The Company may pursue certain specified remedies that it ordinarily invokes, or If true, the Company will pursue a specific remedy.

COMMUNICATING WITH CUSTOMERS IN CONNECTION WITH DEBT COLLECTION Cease and Desist Letter. (FOLLOW UP LETTER TO CUSTOMER ) FastBucks received your letter dated (MM/DD/YYYY), requesting that FastBucks cease its collections efforts for your Account.   As of the date we received your letter, FastBucks will no longer contact you regarding the debt you owe. However, please be advised that if your debt remains unpaid, we may take legal action (outlined in your loan documentation) against you to collect the money owed to us under the contract. We appreciate your time and attention to this matter.

COMMUNICATING WITH THIRD PARTIES Parties That May Be Contacted Generally. Except as provided below, the only third parties that may be contacted when trying to collect a debt are the following: the customer the customer’s attorney a consumer reporting agency (Teletrack)

COMMUNICATING WITH THIRD PARTIES Contacting Other Third Parties for Location Information – References. Other third parties may be contacted only for the purpose of obtaining location information about the customer (i.e., the customer’s home address, telephone number and place of employment).

COMMUNICATING WITH THIRD PARTIES Contacting Other Third Parties for Location Information – References. Company employees may not seek the customer’s telephone number at work, the names and telephone numbers of the customer’s supervisors, or the customer’s pay dates or salary.

COMMUNICATING WITH THIRD PARTIES Contacting Other Third Parties for Location Information – References. Additionally, Company employees may not state the Company’s name or state or imply that the customer owes a debt to anyone. For example, unless an employee receives the express consent of the customer, the employee may not reveal the customer’s debt to the customer’s employer or co-workers. However, if the person called asks for the Company’s name, the employee may disclose it.

COMMUNICATING WITH THIRD PARTIES Contacting Third Parties for Other Purposes – References. Third parties, including references, contacts or family members, may be contacted for purposes other than obtaining location information if— the customer has given his or her consent directly to the Company, or a court has given prior express permission

COMMUNICATING WITH THIRD PARTIES Frequency of Contacting Third Parties – References. A third party may not be contacted more than once unless— the third party specifically requests an additional callback or contact, or the information from the first contact was wrong or incomplete and the third party has since received better location information.

COMMUNICATING WITH THIRD PARTIES Use of the Mail. If debt collection communications are made by mail, the communication must not be in the form of a postcard and must not include language or symbols on the envelope that indicates that the communication relates to the collection of a debt.

PROHIBITED PRACTICES The Company and its employees may not engage in any of the following prohibited practices:

Harassment or Abuse. PROHIBITED PRACTICES No employee may harass, oppress, or abuse any person. All of the following conduct is prohibited: Using or threatening to use violence or other criminal means to harm any person. Using obscene, profane, or abusive language. Publishing a list of customers. Advertising a debt for sale to coerce payment. Repeatedly calling a customer’s telephone number or allowing a customer’s telephone to ring continually with the intent to annoy, abuse or harass the customer. * Making telephone calls without properly identifying oneself (except to obtain location information, as provided above.)

Harassment or Abuse. PROHIBITED PRACTICES A high volume of calls to a customer, by itself, is generally not harassment. This is particularly true if the Company is trying to establish contact with the customer, and the customer fails to respond. However, employees should not call any customer or customer’s spouse more than (i) three times per day on a given contact number (Example: cell or home), or (ii) the maximum number allowed for debt collectors in the customer’s home state, whichever number is less. If a message is left for a customer on voicemail or with a person, no other calls can be made on that phone number for that day, as this is considered a contact. Once you speak to a customer, discontinue calling any other numbers, and notate the account with the details of the conversation.

False or Misleading Representations. PROHIBITED PRACTICES False or Misleading Representations. The Company and its employees may not make any false, deceptive or misleading statements when collecting a debt. All of the following conduct is prohibited:

False or Misleading Representations. PROHIBITED PRACTICES False or Misleading Representations. No employee may falsely state or imply any of the following: that he/she/it is affiliated with the U.S. or any state, including the use of any badge, uniform, or similar identification that he or she is an attorney that nonpayment of any debt will result in arrest, imprisonment, seizure, garnishment, attachment, or sale of any property or wages, unless such action is lawful and intended that the sale, referral, or other transfer of the debt will cause the customer to lose a claim or a defense to payment, or become subject to any practice that is prohibited by the FDCPA that the customer committed a crime, or other conduct to disgrace the customer that documents are legal process that documents are not legal process or do not require action by the customer that a communication is from a consumer reporting agency

False or Misleading Representations. PROHIBITED PRACTICES False or Misleading Representations. Falsely representing the character, amount, or legal status of the debt, or of any services rendered, or compensation that may be received for collecting the debt Threatening to take any action that is not legal or that the Company does not intended to take Communicating, or threatening to communicate, false credit information, including not identifying disputed debts as such Using written communications made to look like documents associated with any court, official, or agency of the United States or any state, or any misrepresentation that a communication is from the government or that the source of the communication is affiliated with the government Using any false representation or deceptive means to collect or attempt to collect a debt or to obtain information about a customer

False or Misleading Representations. PROHIBITED PRACTICES False or Misleading Representations. Failing to disclose in the initial communication and all subsequent communications with the customer that the purpose of the communication is to attempt to collect a debt, and that any information obtained will be used for that purpose Using any name other than the true name of the Company Misrepresenting to a customer that his or her debt would be waived or forgiven if they accepted a settlement offer, if the Company does not, in fact, forgive or waive the debt Calling from a phone that generates a false name, false telephone number, false area code or other false information on a consumer’s caller ID display However, a phone that generates a message of “unavailable” on a consumer’s caller ID display has been found not to violate the FDCPA, and is therefore, permissible.

Unfair Practices. PROHIBITED PRACTICES The Company and its employees may not use unfair or unconscionable means to collect or attempt to collect a debt. All of the following conduct is prohibited:

Unfair Practices. PROHIBITED PRACTICES Failing to post payments timely or properly or to credit a customer’s account with payments that the customer submitted on time, and then charging late fees to that customer Collecting or assessing a debt and/or any additional amounts in connection with a debt (including interest, fees, and charges) not expressly authorized by the loan agreement or permitted by law Except as allowed for payday loans in the ordinary course— Accepting a check or other instrument post-dated by more than five days, unless the customer is notified, in writing, of any intention to deposit the check or instrument. The notice must be given not more than ten or less than three business days before the date of deposit Soliciting a post-dated check or other post-dated payment instrument to use as a threat or to institute criminal prosecution Depositing or threatening to deposit a post-dated check or other post-dated payment instrument before the date on the check or instrument

Unfair Practices. PROHIBITED PRACTICES Causing communication charges, such as those for collect telephone calls, to be made to any person by concealing the true purpose of the communication Taking or threatening to repossess or disable property when— there is no enforceable right to the property the Company does not actually intend to do so, or under law, the property cannot be taken, repossessed, or disabled Using a postcard to contact a customer about a debt Using any language or symbol, other than the address of the Company on any envelope when communicating with a customer

Any Questions? Presentation written by R. Beasley 10/2014