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Are you experiencing communication breakdowns with your clients since the implementation of Regulation F?
Dispute tear-off workflow strategy concerns: Some clients seem to expect that the dispute response, “this is not my debt” should be treated as an identity theft claim. This is a fascinating interpretation, as this dispute response has been around since the Fair Debt Collections Practices Act (FDCPA) was enacted and identity theft processes don’t get triggered until the consumer or evidence is discovered that it may be an identity theft claim. In fact, the FDCPA provides clear guidelines to debt collectors on how to respond to disputes.
Interpretation of laws and regulations can often be a source of friction between clients and their service providers. How you communicate with your clients in these situations may be the difference between mending or fracturing that relationship. Here are a few tips to sharpen your communication skills with your clients:
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Begin by pulling up the law or regulation in question and re-read it. Have there been updates to regulation, is there a frequently asked questions supplemental document. Make sure you have not missed anything.
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When you assert a challenge to someone’s understanding of a subject it’s critical to do this in a way that doesn’t put them on the defensive. In the example provided above regarding the “this is not my debt” scenario you may consider asking, “Can you help me understand why you interpret that response to be an identity theft claim?”
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When you rebuttal make sure you base it on facts. Making overly broad statements can discredit your perspective.
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If you still can’t agree, where can you compromise? If we continue with the dispute/identity theft issue a proposed compromise may look something like this:
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What if we respond to consumers that send us disputes under the “this is not my debt” response prompt we respond according the FDCPA by: ceasing collection of the debt, until the debt collector obtains verification of the debt or a copy of a judgment, or the name and address of the original creditor, and a copy of such verification or judgment, or name and address of the original creditor, is mailed to the consumer by the debt collector.
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In the mailed letter, the debt collector will also include a statement that if the consumer believes this account is still not theirs and they think they may have an identity theft claim then [insert identity theft reporting steps].
The goal is to educate and find common ground that does not create confusion for the consumer. Most creditors are sensitive to the fact that consumers want frictionless experiences, lean into that sentiment with all these types of conversations by taking it back to the consumer’s journey. A dispute response of, “this is not my debt” can mean a multitude of things; from the debt collector having the wrong address to the consumer simply doesn’t recognize the debt or creditor. It’s important for a debt collector to respond in a way that allows the opportunity for consumers to find a resolution to their dispute.
What are your biggest challenges or roadblocks with clients? Submit your topics to sara@insideARM.com
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