first_imgClick here for the white paper. 3SHARESShareShareSharePrintMailGooglePinterestDiggRedditStumbleuponDeliciousBufferTumblr,Mike Hales Mike Hales is Executive Vice President and Director of Strategic Relationships with CU Revest, LLC, where he oversees corporate growth and collaborative strategies. CU Revest is a San Diego based … Web: curevest.com Details Debt collection is an important component of asset management and fiscal responsibility. Third party resources for outsourced debt collection provide a valuable service to credit unions that do not have the internal resources necessary to recover charged off capital. However, debt collection may also expose American households to unnecessary abuses, harassment and other illegal conduct, which has given rise to regulatory concerns.The UDAAP provisions of Dodd-Frank were developed to protect members from these illegal practices. Under UDAAP, the CFPB has jurisdiction over all lenders and their collection service providers. This means that lenders can be held responsible for the acts or omissions of their third party collection agencies or law firms, and boards and management bear ultimate responsibility for any harm caused by a vendor’s failure to adhere to federal consumer financial law.On November 4, 2015, the FTC announced “Operation Collection Protection,” a nationwide initiative they are coordinating with the Department of Justice and the CFPB, as well as 47 state and local enforcement agencies and regulators. So far during its brief existence, 19 individuals face indictment, have pleaded guilty, or have been convicted of criminal charges.Protect your credit union from falling victim to these lawsuits!last_img