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 RMAI website.  RMAI members are encouraged to review the changes and email any comments they have to no later than February 17, 2020.

Here is a summary of the major substantive changes to Certification Standards contained in version 8.0:

  • Appendix A – Standard # A5 (Consumer Complaint and Dispute Resolution) – Adds some basic expectations as to what a “reasonable” consumer complaint and dispute resolution policy looks like.
  • Appendix A – Standard # A7 (Data Security) – Requires a Certified Company to develop a Disaster Recovery Plan.
  • Appendix A – Standard # A8 (CFPB Consumer Complaint System) – Requires the CCO to review their CFPB complaints.
  • Appendix A – Standard # A10 (State Licensing Requirements) – Adds language that encourages debt buyers to consider licensure in any state that also licenses debt collectors unless a Certified Debt Buying Company has either received legal advice or advice from their Chief Compliance Officer to the contrary.
  • Appendix A – Standard # A19 (Social Media) – Creates a new standard concerning the use of social media platforms for collection-related activity.
  • Appendix A – Standard # B1 (Required Data & Documents) – Adopts data and documentation requirements when purchasing student loans (takes effect August 1, 2020 and only applies prospectively).
  • Appendix A – Standard # B1, paragraphs d and e (Portfolio Review) – Refines expectations for pre-purchase portfolio reviews and requires post-purchase reviews in certain circumstances.
  • Appendix A – Standard # B3 (Due Diligence) – Refines due diligence expectations when purchasing from originating creditors v. resales.
  • Appendix A – Standard # B4 (Sales Restrictions) – Adds accounts that have been “discharged and closed” in bankruptcy to sale restriction criteria but permits it when associated with secured liens or obligations associated with a non-bankrupt co-obligor.
  • Appendix A – Standard # B5 (Per Diem Counsel) – Creates a new standard that requires debt buyers to provide per diem counsel with relevant data and documents at least three business days prior to the date of a scheduled court appearance.

Here is a summary of the major substantive changes to Administrative Provisions contained in version 8.0:

  • Article 7.10 – Certified Party in Suspended Status – Addresses the impact of withdrawing from certification while in a suspended status for failure to perform an audit.

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 RMAI at (916) 482-2462.

This alert is intended for members of the Receivables Management Association International and is for informational purposes only and is in no way intended to provide legal advice. Members are encouraged to consult with an attorney of their choice for legal advice concerning this matter.