Examiners found that one or more debt collectors claimed and collected from consumers, interest not authorized by the underlying contracts between the debt collectors and the creditors.
Impact - Collection of an unauthorized debt by falsely representing the amounts due is a direct FDCPA violation prohibiting the use of any false, deceptive, or misleading representation or means in the collection of any debt
Highlights the loans where amounts collected were more than the actual amount due or filters any exception being made on the account for collection of a higher or lesser amount than the actual amount due.
Records are classified as ‘Compliant’ when the amount collected is the actual amount due and ‘Non-compliant’ when the amount collected is more than actual amount due.
5 Value Delivered
Initiating certain debt collection testing rules coupled with effective remediation activities helps:
Significantly reduce the consumers risk of financial loss and/ or initiation of inadequate default activities.