ACA Adopts New Code of Ethics for Collection Industry

The board of directors for ACA International, the Association of Credit and Collection Professionals, (ACA) Wednesday unanimously approved an enhanced association code of ethics. The vote occurred during the Annual ACA Board Meeting, held in conjunction with the association’s 68th Annual Convention & Exposition, at the Hyatt Regency Chicago hotel, Chicago.

ACA’s 5,500 members representing 125,000 professionals in the United States, Canada and 60 other countries worldwide, will now be held to higher standards of conduct as they provide a vital economic impact. Under the significantly modified code, the industry has committed to several provisions that balance the needs of the public with the responsibilities of ethical credit and collection professionals.

Key provisions of the code include:

• Requiring members to designate a contact person at each member company to resolve consumer complaints.
• Requiring members to make efforts to resolve consumer complaints.
• Clarifying the responsibilities of the collector when consumers request information about their debt.
• Forbidding litigation on time-barred debts.
• Clarifying the need for members to obtain accurate and complete information about any accounts being purchased.
• Adopting reasonable procedures for investigating claims of identity theft.

“Today’s decision is a milestone for ACA and the millions of creditor businesses we serve,” said ACA President Michael Shoop. “It’s the latest example of our strong commitment to professionalism and fair practices. ACA supported passage of the Fair Debt Collection Practices Act in 1977, fought to bring collection attorneys within the confines of the law in 1986, and earlier this year introduced guidelines to help collectors and purchasers of healthcare debt align their practices with the care-driven mission of their healthcare provider clients. The updated code of ethics strengthens our platform of balancing consumers’ rights and collectors’ responsibilities.”

ACA chief executive Gary Rippentrop added the code of ethics will help creditors select an agent that will represent them professionally. “We stand firm in our belief that those who collect debt ethically and respectfully should not be placed at a competitive disadvantage to the few who don’t. ACA encourages all businesses and organizations that retain collection agencies to seriously evaluate potential firms based on this code of conduct.”

How ACA’s new Code of Ethics promotes the interests of consumers

Complaint Resolution Officer: ACA is negotiating additional “teeth” to the code of ethics as a meaningful alternative for consumers to resolve complaints. The first step in the process is accomplished by mandating all ACA member companies designate an officer with sufficient authority to handle consumer complaints. Companies will provide an updated contact each year as a part of their membership renewal.