The collections process in general is highly regulated. Our internal collection team and the professional third-party debt collection agencies we work with take comprehensive action to collect payments from delinquent borrowers, all within the extensive federal, state, and municipal laws related to collections activities. Below is some information about one of the many regulations related to collecting delinquent accounts of our borrowers:
Fair Debt Collection Practices Act (FDCPA)
FDCPA provides guidelines and limitations on the conduct of third-party debt collectors in connection with the collection of consumer debts. The FDCPA limits certain communications with third parties, imposes notice and debt validation requirements, and prohibits threatening, harassing or abusive conduct in the course of debt collection. While the FDCPA applies to third-party debt collectors, debt collection laws of certain states impose similar requirements on creditors who collect their own debts. We use our internal collection team and a professional third-party debt collection agency to collect delinquent accounts. They are required to comply with the FDCPA and all other applicable laws in collecting delinquent accounts of our borrowers.