Embracing Ethics

Collector, Sep 2008 by Cherner, David D

Changing times require credit and collection professionals to examine how ethics apply to everyday practices

Ethics has been a hot topic for ACA International members since the board of directors approved the association's new code of ethics last July. So when ACAs 69th Annual Convention in Hollywood, FIa., featured the Embracing Ethics in Every Way session, it wasn't surprising that more than 100 attendees participated.

The session began with a basic question: What is ethics as it relates to the collection industry, and what are your company values? These answers are the outline for creating policies and procedures to run an ethical and effective business, and the ACA Code of Ethics and Code of Operations serves as a framework for businesses to incorporate and transmit those values from upper management to the workforce.

Technology as it relates to the Fair Debt Collection Practices Act (FDCPA) is one area that presents ethical challenges for the credit and collection industry. For example, while case law prohibits debt collectors from conveying a false name via caller ID, debt collectors can transmit "unavailable." Debt collectors should work with telephone providers to ensure accurate information is conveyed via caller ID.

Using e-mail and Web sites to attempt collection or process payment of a debt are other relatively new areas where ethical responsibility applies. While there is little case law on this topic, collectors should take appropriate steps before using these technologies. For using e-mail, the collector should:

* Obtain the consumer's consent prior to using e-mail.

* Obtain the consumer's e-mail address from the consumer.

* Document and maintain copies of all electronic communications.

With respect to using Web sites, if the collector has included a Web address in a collection letter, the content of the Web site must comply with the FDCPA, regardless of whether the consumer visits the Web site or not. Aso, a Web site for consumer use should be separate from the debt collector's main Web site, easy to navigate, and absent of extensive descriptions of the business and services provided by the debt collector. If a consumer is directed to a third-party service provider's Web site to make a payment, the debt collector's site should include a redirect page explaining the consumer is leaving the debt collector's Web site. Lastly, policies and procedures should be in place to document all information posted on the Web site for a period of at least 12 months.

Of course, it is always important for debt collectors to speak with legal counsel when considering using e-mail and the Internet as debt collection tools.

The convention session was one method ACA is educating members about their ethical responsibilities under the ACA Code of Ethics and Code of Operations. Watch for additional articles and educational opportunities to come.

David D. Cherner is ACA International's legal counsel and legislative director of state government affairs.