1. Fair Debt Collection Practices Act (FDCPA)

2. Log into Quia and complete the FDCPA pre-assessment quiz. 2 FDCPA - How much do you know about this law?

3. The Mini-Miranda is used only when making outbound calls on Citi-Service accounts and when a Right Party Contact (RPC) is made. 3 The Mini-Miranda: For Citi-Service Accounts The Account Manager… Must communicate the following on all outbound calls where an RPC is identified. “This communication is from a debt collector. This is an attempt to collect a debt. Any information obtained will be used for that purpose.”

4. The Fair Debt Collection Practices Act (FDCPA) is the federal law that defines and governs how collection agencies can operate. The law protects consumers from abusive collection practices by debt collectors. FDCPA gives consumers protection with regards to personal, family, and household debts, including money consumers owe on a personal credit card account, auto loan, medical bill, or mortgage. 4 What is FDCPA?

5. Contact hours 8 am to 9 pm local time for the customer Failure to cease communication upon written request Causing a telephone to ring or engaging any person in telephone conversation repeatedly or continuously Ceasing to contact the debtor's place of employment upon verbal request Contacting consumer represented by an attorney Ceasing all telephone contact with the debtor upon receiving a cease and desist notification 5 FDCPA - Prohibited Conduct:

6. Misrepresentation or deceit Publishing the consumer's name or address on a "bad debt" list. Seeking unjustified amounts Threatening arrest or legal action Abusive or profane language Communication with third parties Reporting false information. 6 FDCPA - More Prohibited Conduct:

7. Threatening to take legal action Calling repeatedly or continuously Threaten action they cannot or will not take Informing unauthorized a third party about alleged debt Harassment and verbal abuse 7 5 Most Common FDCPA Violations:

8. In November 2003, the Commission reached settlements requiring subprime mortgage servicer Fairbanks Capital Holding Corp. to pay $40 million for the following charges: Failed to post consumers’ payments in a timely and proper manner, and then charged consumers late fees or additional interest for failing to make their payments “on time”. Communicating or threatening to communicate credit information that it knew to be false; Using false representations or deceptive means to collect or attempt to collect debts, or to obtain information concerning consumers; Collecting amounts not authorized by the agreement or permitted by law; Assessed and collected improper or unwarranted fees, such as late fees, delinquency fees, attorneys’ fees, and other fees. In addition to the payment, the settlements enjoined the defendants from future law violations and imposed new restrictions on their business practices. 8 FDCPA Settlement Case 1:

9. ABC Corp. is forced to pay $1.9 million to settle harassment suit. In October 2002, ABC Corp. settled out of court for $1.9 million dollars for circumstances stemming from creditor harassment.. This is what happened: ABC account manager called co-buyer’s place of employment 55 times in a 45 minute time period. Account manager told co-buyer’s supervisor – “I will put one gun to your head and another gun up your %#&@, and blow your &*%$#@^ head off.” Account manager told buyer’s 80 year-old mother – “I am with the Department of Public Safety and your son has been killed in a car accident. Is there a good forwarding address for his belongings.” 9 FDCPA Settlement Case 2:

10. Third Party Disclosure Third Party Disclosure The Account Manager… Must not inform or insinuate, to an unauthorized third party, that the customer owes a debt. Must not communicate with any third party more than once in a 24 hour period unless requested to do so by the third party. Must cease all collections calls to the customer if customer is represented by an attorney. 10 FDCPA - Guidelines:

11. Customer Communication Customer Communication 11 FDCPA - Guidelines: The account manager… Must not call the customer at any unusual time or place that’s is known to be inconvenient for the customer.. Must not communicate inappropriate messages on the customer’s or third party’s answering machine.

12. Harassment and Abuse Harassment and Abuse 12 FDCPA – Guidelines: Must not communicate or threaten the use of violence or other criminal means to harm the customer’s physical person, reputation, or property. Must not use obscene, profane, or inappropriate language that is used to intimidate, harass, or abuse the customer or any other person. Must not cause a telephone to ring or engage any person in telephone conversation repeatedly, with the intent to annoy, abuse, or harass.

13. False and Misleading False and Misleading 13 FDCPA - Guidelines: The account manager… Must not threaten any action that cannot legally be taken. Must not use deceptive means to collect or obtain information that concerns the customer. Must not use any business, company, or organization name other than Santander Consumer.

14. Unfair Practices Unfair Practices 14 FDCPA - Guidelines: Must not intentionally deposit a post- dated check, prior to the date on the check, without the consent of the customer. Must not threaten to deposit a post-dated check, prior to the date on the check, without the consent of the customer. Must not, with malicious intent, cause charges to be made to the customer.

15. Can contact the customer between 8 am to 9 pm, local time for the customer Cease communication once written request is received No harassment Do NOT contact a customer that is represented by an attorney. Do not seek false amounts Do NOT threaten any actions Do NOT use abusive/profane language Do NOT reveal or discuss debt with authorized third parties Do NOT report false information to the customer 15 FDCPA – Guidelines Review:

16. 16 Questions?