Debt Collection by the Numbers
• 30 Million: approximate amount of American consumers
currently subject to debt collection
• $1,500: average amount of debt subject to collection
• 4,500: approximate number of debt collection firms
in the United States
• $12.2 billion: approximate amount of industry's
• 63 percent: % of industry's annual receipts by
firms that will be subject to CFPB supervision
The Consumer Financial
Protection Bureau (CFPB) assumes the oversight of the consumer debt
collection industry on January 1, 2013.. The Federal Trade Commission
will work under the CFPB to help with compliance and consumer education.
Abuses in the consumer debt collection industry are rampant.
There are two issues that deal directly
accounts receivable management (ARM) a/k/a debt collection, "Collection
Practices” and "Collection debt dispute.” When combined, these two
issues were the third most commonly cited by consumers in complaints.
The CPFB will be taking over the work of compiling
and handling consumer complaints about debt collectors beginning
in January 2013. Unlike the practice of the FTC, who has previously
handled the complaints, ARM companies will be able to respond to
the complaints and offer resolution.
The DCCS® is trained
to be an advocate for the consumer, both to help with complaints
and also to resolve others issues connected to collections, i.e.
negative credit reports and low credit scores. Among the qualified
professionals who benefit from the DCCS training are employed by
a wide range of organizations including consumer credit and debt
counseling organizations, credit unions and other financial institutions,
student loan lenders, cooperative extension system, all branches
of the military, mortgage, real estate, and financial services
firms; law enforcement, and other government agencies. Many others
are private practitioners including notary public, attorneys, security
consultants, CPAs, CFPs, and consumer educators.
What are the DCCS®
course learning goals and objectives?
1. Identify key components of the Fair Debt Collection Practices
Act - FDCP.
common collection terms and define key differences.
Identify collection information in credit reports.
and verify collection information in credit reports. and
identify methods for credit file correction of mistakes.
5. Identify methods of access to credit reports, free and
6. Review a credit report for mistakes and missing information.
7. How to
report inaccurate information on a report to CRAs.
the CFPB rules for debt collection Practices.
Recognize the impact of consumer behavior on collections.
Identify methods consumers can use to combat abusive collection
agents and firms.
Recognize privacy laws and their impact on credit lenders and
Identify potential identity theft using a credit report and
information provided in a credit application.
Review the Consumer Financial Protection Bureau and the Federal
Trade Commission Resources for consumers.
Communicate key components of credit reports to consumers.
to use the legal system to effect changes on a debt collection
The growth of the consumer credit
has been explosive. Americans are still getting all charged-up
with their plastic and far too many of them have fallen behind and
now find themselves the target of aggressive debt collections.
Consumer Debt Collection Compliance Specialists (DCCSs®)
have learned the Fair Debt Collection Practices Act, the FTC staff
commentary and applications of the statute, the Fair Credit Reporting
Act (FCRA) and the Fair and Accurate Credit Transaction Act (FACTA).
They have learned what a debt collector is, what collectors are
and are not covered by the FDCPA. Also included are the most
common debt collector violations of the FDCPA. How to advocate for
the consumer debtor. Being in a consumer debtor in collections
has consequences like negative credit reports and low credit scores.
program also includes how to read and understand credit reports.
They have also learned about the steps to take to guard against
credit and identity theft, an important new aspect of disputed debt
among a growing number of consumers. Another important aspect
in the training is about credit scoring; how to both maintain and
increasing them, which often results in lower credit costs.
people are now becoming aware of the importance of looking at their
credit files, especially because of recent headline news stories
about the rapid increase of crime in these areas.
Studies have also shown that credit history is a powerful predictor
of future auto insurance losses. Many insurance companies consider
certain credit characteristics in addition to many other factors
when determining an individual's rate.
provide a valuable service by helping to educate their individual
clients and small business owners on the importance of maintaining
a good rating, high credit scores and protect their personal information
program is accepted for 5 CEUs by the AFCPE.
debt collectors are professionally trained. The DCCS®
course reviews some of the collector training courses and points
out their focus = collect more money. Consumer advocates,
properly trained are much needed and desperately lacking. Those
who take this training course who become a consumer debt collection
compliance specialist will enhance their value to their employer
or clients.. Every counseling agency and counselor will want
to have consumer debt collection compliance specialists on staff
and on their personal resumes.
Here is what's included in the
Independent Study Guide - FDCPA-FCRA-FACTA
Independent Study Guide
Table of Contents
Consumer Financial Protection Bureau to oversee debt
Collection agencies and junk debt buyers -
What to do if a debtor is contacted about past
Sample cease and desist
Fair Debt Collection Practices Act Summary from the
Debt that is
Debt Collectors that are
Debt Collectors that are NOT
Debt Collection for Active and Veteran Military
Communications connected with debt
When, where and with who communications is
Ceasing Communication with the
Communicating with third
Prohibited Practices: Harassing or abusive
False or misleading
Legal Actions by debt collectors
Furnishing certain deceptive
CFPB/FTC staff's commentary on the
Common debt collector
How to document a collector's abusive
What to do if a collector breaks the
How collectors are trained - examples of collector training
FDCPA Sample Exam from ACA for
How collectors are using Social Medias in
Dealing with creditors and third party
Other factors for a debtor in collection: Credit reports
Reviewing credit reports with debtors- Permissible uses
Rules about credit decisions and
Debtor education about credit reports and FICO
Rules to protect consumers in credit card
How to read and understand credit reports
How to make changes or dispute accuracy
FCRA/FACTA Provisions of ID Theft
How credit scoring
The Credit Card Accountability and Disclosure Act Credit
CFPB rules establish strong protections for homeowners
Other course components:DCCS®
Question Examination/Answer Sheet - FDCPA-FCRA-FACTA
100 question exam - 80 correct answers required
IC Personalized ICFE Certificate with ICFE Seal:
Certified Consumer "Debt Collection Compliance Specialist" -
Benefit: Be listed in the ICFE's online Directory
and other certificants.
ICFE eNEWS and regular email updates
Multiple Enrollment Savings of $25 each. (2
or more enrollments at same time)