SACRAMENTO, CA, November 13, 2014 – DBA International, the voice of the debt buying industry, commends the Federal Trade Commission (FTC) on its leadership role in the recently announced security measures that provide guidance to ensure that adequate security protocols are followed which offer greater protection of consumer data during the review of portfolios in the buying and selling valuation process.
Posted on the FTC’s business center blog, the newly recommended security measures for debt buyers and sellers provide specific suggestions on ways to protect data at each step of the transaction, beginning with qualifying the potential buyer through the destroying of data at the end of the process.
“Several months ago, the FTC expressed concerns about consumer data protection in the buying and selling valuation process undertaken by debt buying companies,” said DBA International Executive Director Jan Stieger. “DBA worked with the FTC in the development of best practices, many taken from policy and procedure manuals of DBA’s members. The standards set by many DBA members exemplify the professional and ethical environment maintained by the vast majority of debt buyers.”
Out of the seven security measures included in the FTC’s business center blog, the FTC included some of the recommendations provided by DBA International:
- Non-Disclosure Agreement: The buyer and seller would execute a mutual Non-Disclosure Agreement that is valid for a minimum of two years.
- Due Diligence: Before sharing or transferring any data, the prospective buyer and seller must conduct a thorough due diligence process. This process ensures that the seller is the true owner of the debt and possesses the required data to validate the consumer and the debt. It also ensures that the buyer has sufficient data to value the portfolio for purposes of submitting a bid to purchase it.