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Adhering to CFPB Regulations by Implementing Statute Monitoring

Updated: Jul 21, 2023

THE PROBLEM

The CFPB Regulation now prohibits agencies from bringing a legal action or threatening to do so rather than the statute of limitations being an affirmative defense for a debtor to raise against a suit. As with any new law or regulation, a slew of plaintiff’s attorneys and consumer advocate groups are keeping their eyes wide open for mistakes.



While calculating the statute period is straightforward once you have the salient dates based on the proper jurisdiction and contract type, getting there is… complicated. You want to employ a method that takes this complex calculus out of the hands of the collector and automates it, so they can focus on having effective conversations with the right consumers.



THE SOLUTION | STATUTE MONITORING

Not only is there value in removing dangerous accounts to litigate (or in some states even collect), diverting those accounts that are time-barred will give your inventory an efficiency boost.


That is, transparency into your inventory by various classifications (score band, balance range, line of business, client) that shows you the time-barred status allows you to create workflows and staffing plans around these data points. You can also have candid conversations about rates and practices with your creditor clients who place primarily time-barred accounts with your agency.


There are a host of reasons to be proactive on time-barred collections. Getting there requires both technology and staying informed. We appreciate the community benefits that arise from our customer relationships in keeping us up-to-date on changes in their jurisdictions.


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