Consumer Debt Servicing + Collection

We counsel banks and nonbanks on designing, developing, and implementing debt collection policies, procedures, and strategies. Informed by our experience in handling litigation and enforcement actions, we develop policies and procedures that will withstand regulatory scrutiny and prevail in court.

We partner with selected high-quality collection law firms and agencies that focus on collections work, including managing outsourcing relationships with those firms for our clients. We develop and implement vendor oversight programs for proof of claim, bankruptcy, default lawsuits, writs of garnishment or sequestration, court orders for seizure and repossession, and recording judgment liens.

We advise collections clients on how the Fair Debt Collection Practices Act (FDCPA); Unfair, Deceptive, or Abusive Acts or Practices (UDAAP); and state debt collection laws and licensing regulations apply to their businesses. As regulations (and enforcement agency priorities) change, we proactively advise clients on the scope of regulatory authority, emerging trends, and risk areas relevant to their businesses.

We have many ways of keeping clients informed of regulatory developments, including customized web portals, our Consumer Financial Services Law Monitor blog, as well as weekly newsletters, podcasts, and other thought leadership. We conduct 50-state surveys on state laws regarding debt collection requirements, repossession, right to cure, garnishment, consumer communication restrictions, and licensing requirements.

We help develop consumer and customer communications strategies, draft templates, and review default letters, notices, and contract terms to ensure they adhere to relevant state and federal laws concerning loan agreements and debt collection. We also develop 50-state resources for collection clients to use in collection letters, texts, emails, voice messages, and scripts.

Decades of experience informs our advice about appropriate and efficient debt collection strategies. We are well-versed in compliance issues related to the FDCPA, Regulation F, Telephone Communications Protection Act (TCPA), Fair Credit Reporting Act (FCRA), Servicemembers Civil Relief Act (SCRA), and the Electronic Funds Transfer Act (EFTA). We use this knowledge to assist clients to review, modify, and update their internal collection operations to ensure ongoing compliance and mitigate potential risk.

Our multidisciplinary team has extensive experience interacting with key regulators, including the Consumer Financial Protection Bureau, the Federal Trade Commission, state licensing authorities, and state attorneys general. We prepare clients for exams, license reviews, hearings, and investigations, and vigorously represent their interests before federal, state, and other industry regulatory bodies.

Our litigators have significant experience representing clients in litigation related to debt collection, including defending against individual and class action lawsuits alleging violations of the FDCPA, TCPA, and other consumer protection laws. Our work on compliance, counseling, and program development ensures a deep familiarity with all aspects of debt collection compliance, and informs our approach to litigation.