The Certification Council is proposing edits to the Receivables Management Certification Program (RMCP). The Council is required to perform a review of certification program standards at least annually to ensure the program reflects “evolving industry best practices, input from key stakeholders and communities of interest, areas of Council concern, and recent regulatory and statutory changes.”
The proposed changes to the Certification Governance Document have been posted on the RMA website. RMA members are encouraged to review the changes and email any comments they have to firstname.lastname@example.org no later than June 29, 2017.
Here is a summary of the major substantive changes contained in version 5.1:
- Branding (Entire Document) – Removes references to DBA and replaces with RMA.
- Article I (Mission Statement) – Updates the mission statement to add language which reflects the “consumer protection” element of the program.
- Article II (Definitions) – Adds definitions for “broker” and “RMA” while deleting the definition for “DBA.”
- Appendix A – Standard # 18 (Purchase & Sale Documentation Requirements) – Makes revisions to incorporate specific requirements for the purchase and sale of judgments. The current standard focuses exclusively on the purchase and sale of pre-judgment receivables. It is important to note that the language concerning judgments is prospective and will not apply to judgments purchased prior to July 1, 2017.
- Appendix A – Standard # 19 (Representations & Warranties) – Revises the existing standard to require that “best efforts” be used to obtain the RMCP representations and warranties while at the same time providing certified companies some latitude by allowing “substantially similar” language rather than the current word-for-word.
- Appendix A – Standard # 20 (Due Diligence) & Standard # 21 (Sale Restrictions) – Moves the current “due diligence” requirements that are a part of Standard #21 to its own standard (Standard # 20) to highlight the importance RMA places on due diligence.
- Appendix B – Standard # 6 (Affidavits) – Deletes the standard on “affidavits” for broker certification. Brokers very rarely, if ever, sign affidavits, making the standard superfluous.
- Appendix B – Standard # 11 (Seller Requirements) – Revises the current broker standard by adding a clarification that it only applies to brokers “when one of the contracting parties is a Certified Company.” This introductory language is identical to that used in Standard # 12.
When responding via email, please: (1) indicate “30-Day Comment” in the email subject line, (2) provide your name and company name in the body of the message, and (3) indicate the page and section number from the Certification Governance Document that your comment is referencing.
Based on comments received from this 30-day comment period, additional edits may be incorporated prior to final adoption. If you have any questions, please contact RMA at (916) 482-2462.