Receivables Management Association International is pleased to support reporters, bloggers and others who follow or write about the debt buying or receivables management industry. We are proud of our industry: where we are and where we are headed. We are available to work with you, whether it be on background information for a story, a comment or quote, or to answer any questions you have. Below are some documents that provide information and context to further your understanding of the industry and RMAI.
Learn more about the Debt Buying Industry
RMAI maintains FinancialLiteracy.rocks, a site offering the knowledge necessary to make financially responsible decisions. Visitors can navigate information grouped by audience or topic to find the information most relevant to them. This linked one-pager provides an overview of the site and the resources available.
RMAI Infographic Demonstrating High Compliance Level of RMAI Certified Businesses
When looking at the number of accounts RMAI certified businesses collect on, only a small percentage of those accounts receive complaints on the Consumer Financial Protection Bureau’s (CFPB) Consumer Response Portal: 1 out of 5,000 accounts in collections receive complaints. Based on CFPB data, the infographic shows that 100 percent of consumer complaints received responses from the certified businesses, and 99.3 percent of the responses were timely. Additionally, out of the 132 certified businesses, 97 percent have statistically zero percent, or no complaints, filed.
The Impact of the Receivables Management Certification Program on Litigation
The Receivables Management Certification Program (RCMP) standards meet, exceed, or are unprecedented in existing state and federal regulations, ensuring consumers stronger and more stringent protections when dealing with RMCP certified businesses. This infographic shows how litigation against the sample of businesses decrease by 20.8% after earning a certification designation.
Higher Risk Borrowers May Be Negatively Impacted by New Consumer Regulations
As the CFPB considers new regulations for consumer debt collection, it is important that policy makers understand the potential consequences such regulatory proposals have on the consumer. This backgrounder summarizes how new regulatory proposals, designed to protect the consumer, tend up having unintended consequences. They also limit flexibility in debt collection practices, as indicated in the recent study conducted by Professor Todd Zywicki of the Mercatus Center at George Mason University.
The Impact of Regulations on Consumer Debt Collections
Based on Professor Todd Zywicki’s recent study, this one-pager highlights how consumer debt collection is already subject to extensive federal and state regulation. Before adding new regulations, the CFPB should take into account that the majority of the most questionable debt collection practices have previously been outlawed or restricted; existing practices, by contrast, raise much more challenging concerns about whether further restrictions would create marginal benefits that exceed the marginal costs.
Smaller Debt Collection and Debt Buying Firms Disproportionally Harmed with Increased Regulation
Small firms and businesses play an important role in the debt collection industry, possessing knowledge of local economic conditions that can benefit consumers. Nowhere is the need for the active participation of small businesses greater than in the consumer credit market, especially for those consumers that are the most vulnerable. This backgrounder, based on Professor Todd Zywicki’s recent study, highlights how regulation of particular debt collection practices negatively impacts the small firms and businesses in our industry.
The Law and Economics of Consumer Debt Collection and its Regulation
A study conducted by Professor Todd Zywicki of the Mercatus Center at George Mason University indicates that careful evaluation of the current regulatory environment is necessary to ensure that the debt collection and debt buying industries continued to fulfill their critical role in the economy. The study also found that as the Consumer Financial Protection Bureau (CFPB) considers new regulations on debt collection, it must take into account the intended and unintended consequences of any regulations before they are adopted.
White Paper on the Debt Buying Industry
The debt buying industry is a critically important segment of the nation’s credit-based economy. This white paper explains the industry, the economic benefits that are returned to originating creditors and consumers, the regulatory framework in which the industry operates, recent state regulatory trends, and RMAI’s Debt Buyer Certification Program.
Debt Collection and Consumer Rights
The debt collection industry is one of the most heavily regulated industries and is supervised by multiple governmental agencies. RMAI believes that all consumers should be aware of their rights if they’re contacted by anyone in the collections industry. This backgrounder serves as a resource to consumers and highlights the Fair Debt Collection Practices Act (FDCPA) and its role to eliminate abusive practices and promote fair debt collection to provide consumers with an avenue for disputing and obtaining validation of debt information to ensure the information’s accuracy.
RMAI Receivables Management Certification Program Overview
As the debt buying industry’s trade association, RMAI created its “global standard,” Debt Buyer Certification Program to set uniform industry best practices designed to exceed state and federal debt collection requirements through standards that stress responsible consumer protection and increased transparency. Consumers who communicate with certified RMAI member companies will have the assurance of knowing they uphold the industry’s highest ethical standards and transparency.
The Role and Value of the Debt Buying Industry
While the buying of consumer debt is an important component to the current U.S. economic system, the industry is often met with confusion or misunderstanding. Consumers are concerned they “lose” in the debt collection process; however, when debt is collected in a professional and ethical manner, there are no losers. The buying and selling of debt benefits everyone, from consumers to businesses, and is a key component that strengthens our credit-based economy.
RMAI is available to be a resource to reporters and those wanting to learn more about the industry. Reach out to Executive Director Jan Stieger.