The team at Troutman Sanders has details about a $50,000 consent order assessed by the Minnesota Department of Commerce against a collection agency for alleged compliance and regulatory infractions.
The collection agency, Range Credit Bureau, was accused of failing to file unclaimed property reports for funds that were owed to a customer that could not be located, failing to implement a proper compliance management system, allowing unlicensed collection activity to occur in states in which a license was required, operating two unlicensed locations, and failing to establish or follow procedures related to screening collectors. The state stayed $10,000 of the penalty, requiring the collection agency to pay $40,000.
Along with paying the fine, the collection agency is also required to undertake a number of steps to bolster its compliance policies and procedures, including:
- Comprehensive written policies and procedures designed to prevent violations of consumer protection laws and prevent harm to consumers
- Building an effective training program that includes regular, specific, comprehensive training in consumer protection laws for debt collectors, administrative personnel, and all management and owners
- Developing an enhanced internal CMS monitoring process incorporated into the daily work of individual debt collectors that is designed to detect and correct compliance weaknesses within the agency
- Building an effective complaint monitoring process
- Creating an internal audit function of the compliance program
The agency must also build an implement a background check policy for all collectors, obtain licenses for unlicensed locations, and complete an internal audit of all unclaimed funds.
