1. Best Practices Collector Calls Notices and Required Disclosures Trust Accounts Richard Dumais (MA) Jeff Hubbell (CT) Garrett Young (MA)

2. Agenda  Collector Calls  Collection Notices  Required Disclosures  Role Play  Trust Accounts  Q & A  Additional Information/Contacts

3. FDCPA Mini Miranda  This communication is from a debt collector and is an attempt to collect a debt. Any information that you provide to us will be used for such purpose.

4. Collector Call Documentation  Notes, Logs  Letter History  Payment History  Recordings

5. Collector Calls - Triggers  Dialogue Dispute -code  Post dated Payment – notices  Series of Payments arranged  Third party involvement – code  Someone upset  Time of day included in account history – pattern identification  Number of times called [pattern identification  Bankruptcy - code

6. Selection Criteria  Represent a cross section of accounts  Industries  Calls from multiple call centers  Payment Types  Major Clients  Account comments

7. Call Checklist Phone Monitoring Check List

8. Triggers  Action Codes  NTNote Only  OPOther Phone  SCSupervisor Call  TETelephoned Employer  TNTelephoned Neighbor  TRTelephoned Residence  Result Codes  AMAnswering Machine  LBLine Busy  LMLeft Message  NANo Answer  TTTalked To  WNWrong or NonPub #

9. Verifying Debtor  First and last name  Birthday, address  Last 4 digits of social security #  Follow-up Calls – Account #

10. Right Party Consideration  Debtor Answers Phone  Failure to disclose to debtor that the call is from a debt collector and all communication will be used for that purpose  Collector fails to disclose personal name  Obscene/profane language  Threats  Announcement that collector will take action they do not intend or legally cannot take action.  False representation about debt (amount, legal status)

11. Calls  Third Party Answers Call  Failure to disclose agency name  Collector fails to disclose personal name  Disclose name of licensee in absence of express request  Disclose there is a debt  Discuss debt  Multiple communication to third party  Wrong #

12. Role Play

13. Collection Notices  Initial contact validation Notice  Notice of Intent to deposit  More than 5 days must send notice 3-10 days in advance  Recurring written authorization for EFT  NSF letter  Broken promise notice  Settlement letter

14. Trust Accounts  Benefit of Protocols & Exams - SRR  Sample Trust account  Copies of statements/checks  Age of checks  Date of check  Are you in balance  Co-mingling  Sweeps  Negative balance  Transfers

15. TRUST ACCOUNT EXAMINATION PROCEDURES  WHY  Many states require that a licensee maintain a trust account if a collection agency receives or holds funds belonging to another entity. Additionally, many clients require separate trust accounts. These funds are required to be separate from those utilized in the operation of the business, therefore the licensee must also maintain a separate operating account in order to function.  All accounts, including the operating account, should be reviewed from the prospective that if any of the accounts are mismanaged, the business, client and most importantly the debtors could be compromised.  Conceptually - verification of a debtor being credited for having made a payment cannot be confirmed without ensuring the payment information has been reported and credited to the client. Procedurally, one of the best ways to accomplish this is through the reconciliation of the trust account(s) by verifying that all remittances have cleared, thereby knowing that the client has received some form of a report identifying payments made.

16. Nuts & Bolts  Verify that the Trust Account Balance Covers the Total Amount Due to Clients  Verify the Proper Use of the Trust Account  Verify the Accuracy of the Records

17. Questions

18. Additional Info  Websites  www.nacaraweb.org www.nacaraweb.org  www.ftc.gov www.ftc.gov  Contact Information  Rick Dumais  Richard.Dumais@state.ma.us Richard.Dumais@state.ma.us  617-956-1500 Ext. 662 Jeff Hubbell  Jeffrey.Hubbell@ct.gov Jeffrey.Hubbell@ct.gov  860-240-8205  Garrett Young  Garrett.Young@state.ma.us Garrett.Young@state.ma.us  617-956-1500 ext. 626