Jain Stieger, the executive director of DBA International, said the association was reviewing the recommendations made by Human Rights Watch in a report the non-profit group released last week that analyzed how debt buyers use the legal system and how the system impacts consumers, especially low-income consumers.
Human Rights Watch recommended that DBA International amend its certification program to further protect consumers from companies and the legal system.
Among the recommendations made in the report were:
- Refrain from adding interest to, and from collecting post-judgment interest on, the balance of purchased debts.
- Bar all attorneys litigating plaintiffs’ claims from engaging in direct negotiations with unrepresented defendants on court premises unless these take place in the presence of judges, neutral mediators, or other designated officers of the court.
- Refrain from purchasing any debt or portfolio of debt unless the seller is willing to provide all of the warranties enumerated in the DBA International certification standard.
- In all communication with alleged debtors, clearly indicate the provenance of the debt at issue and the date on which it was purchased.
- Amend DBA’s Certification Program to require member companies to adopt policies that operationalize the recommendations to debt buying companies outlined above. Incorporate these new membership requirements into DBA’s certification standard.
- Adopt a policy prohibiting member companies from accumulating pre- or post-judgment interest on purchased debts.
Stieger was glad that report mentioned the DBA’s certification program, and said the association worked with Human Rights Watch for nearly a year to provide information and resources to help educate the group about the debt-buying industry.
“It’s always a worthwhile investment of resources to help educate,” Stieger said during a phone interview on Friday afternoon. “We are always willing and open to work with any group.”
Stieger said that DBA will “take a look” at what Human Rights Watch recommended in its report. In many ways, the industry is bound by what the legal system allows and does not allow, and what is asked of debt buyers when they are in front of a judge, Stieger said.
“If the court tells us to go outside and have a conversation with a consumer, that’s what we’re going to do,” Stieger said. “Our goal is not to obtain a judgment; we want to resolve the account. Those conversations often lead to a settlement for far less than what is owed and a dismissal of the case.”
