FDCPA - 1st Party Guidelines

Overview: This course will teach new agents about the guidelines of the FDCPA as it
applies to 1st party agents. Click the "Start Course" button to begin.

IN TR ODUCTION

Objectives

FDCPA & Collection Vocabulary

De ning the FDCPA

Debt Communication

Harassment and Abuse

False and Misleading Representations

Unfair Practices
Disputes and Payment

Summary

Quiz

Course Completion
Lesson 1 of 11

Objectives

The way you see people is the way you treat them, and the
way you treat them is what they become

Johann Wolfgang von Goethe

FDCPA: 1st Party Overview

The FDCPA a ects 3rd Party, US consumer collection practices. All 3rd party agents are required
to take a much more stringent and detailed course regarding this law. This course is designed
for 1st party/early-stage collection agents.

Upon completion of this course, all agents will be able to demonstrate a mastery of the following

1 Demonstrate an understanding of terms and vocabulary for the FDCPA and 1st
party collection expectations

2 Di erentiate between who the FDCPA e ects and does not with regards to
collection standards

3 Recognize good and bad collection practices associated with the reason for the
creation of the FDCPA

4 Understand and demonstrate 1st party collection guidelines that uphold the D&S
company philosophy
 C O NT I NU E

Remember the golden rule

Do unto others as you would have them do unto you

C O NT I NU E
Lesson 2 of 11

FDCPA & Collection Vocabulary

FDCPA and Collection Terms

The FDCPA is a US law that outlines the standards for all 3rd party collection e orts. As such
there are several terms that new agents will need to become familiar with. These terms are not
exclusive to the FDPCA but are common throughout the collection industry.

Navigating the FDCPA and Collection Terms

Key Terms You'll See Throughout This Course
Click on each term below to find out more.

Communication
–
Conveying information to any person about a debt: This includes information transmitted by:

Phone

Email

Fax

Letter

Consumer
–

1. The FDCPA defines this as the person obligated or allegedly obligated to pay a debt. These
account types are regulated by the FDCPA

2. This term can also refer to a person who is acting for purposes which are outside of his trade
or profession. For training purposes, we will use the term consumer accounts when
referencing this definition.

Commercial Account
–

These account types are actually business accounts.

 Commercial or business accounts are governed di erently and are not regulated by the
FDCPA.

Commercial or business accounts typically provide a service or sell physical products to

consumers.

Creditors
–

Creditors o er or extend credit to consumers and are owed the debt by the consumer

Creditors may collect on the debt owed to them or hire vendors such as D&S to collect in
their name as 1st party agents.

A business that operates solely by collections is not a creditor.

Debts
–

Created from transactions between creditors and consumers.

The amount owed by a consumer for services or products rendered by a creditor.

Debt Collector
–

A person who is collecting on a debt owed to and on behalf of another.

Creditors may collect on their own debts or outsource agencies such as D&S to attempt and
collect.
Location Information
–
Contact information about a customer such as

Home Address

Home Phone

Place of Employment

This information is used to make contact with the customer or responsible party that is able to
resolve the account.

Skip Tracing
–

The attempt to find a customers location information.

This can involve online searches using traditional search engines such as Google, or even
social website such as Facebook or Twitter to gain information about the customer.

More extensive searches can be done through paid search engines such as Accurint.

Complete the content above before moving on.

Knowledge Check

In this exercise, you will need to need to match the

correct word to the definition.
Drag and drop each word on the left to the correct definition
on the right

Conveying information to any

Communication
person about a debt.

The person obligated or

Consumer allegedly obligated to pay a
debt.

Provides a service or sell

Commercial Account
physical products to consumers.

O ers or extend credits to

C dit
 Creditors
consumers and own the debt.

Created from transaction

Debts between creditors and
consumers. The amount owed.

A person who is collecting on a

Debt Collector debt owed to and on behalf of
another

The attempt to find a customers

Skip Tracing
location information.

Contact information about a

Location Information customer. Customers, home
address, or phone number.

SUBMIT

Complete the content above before moving on.

A person who is acting for purposes which are outside of his trade or
profession
 Commercial Account

Consumer Account

Creditor

Debt Collector

SUBMIT

Which is e ected by the FDCPA?

Commercial Accounts

Consumer Accounts

SUBMIT
Which is a type of Location Information? Choose all that apply

Home Address

Phone Number

Place of Employment

SUBMIT

Complete the content above before moving on.

Lesson 3 of 11

De ning the FDCPA

What is the FDCPA

The FDCPA or Fair Debt Collection Practices Act is a US law created to protect the consumer
from unfair and illegal debt collection methods. It creates a standard for the collection industry
and attempts to make sure nonabusive collections agencies are not disadvantaged.

Remember, the consumer as de ned by the FDCPA is someone who is

obligated or allegedly obligated to pay a debt.

Who is affected by the FDCPA?

Understanding who is affected by the FDCPA?
It is important that you understand who is and who
is not a ected by this law. Understanding the
di erent groups that the FDCPA applies to will help
you understand how the FDCPA will a ect you as a
collector. The FDCPA a ects all of the following.

1 Collection attempts made within the United States

2 Late-stage (3rd Party) collections

3 Consumer accounts

Who is not affected by the FDCPA?

It is equally important to understand who is not a ected by the FDCPA is as customers may
claim FDCPA violations when none have occurred. The following do not fall under the
guidelines of the FDCPA.
1 Collection attempts made outside of the United States

2 Early Stage (1st Party) collections

3 Commercial or Business accounts

C O NT I NU E
Knowledge Check
In this exercise, you will need to sort the cards by dragging and dropping them into the

corresponding fields. You will have to decide which applies to the FDCPA and which does not.
 Applies to the FDCPA

3rd Party Calls made to the US

Consumer accounts

Does Not apply to the FDCPA

1st Party Calls made outside of the US

Commercial or business
 accounts

Complete the content above before moving on.

In the next lesson, you'll learn about guidelines that all 1st party agents
should follow when communicating to customers about their debt

C O NT I NU E
Lesson 4 of 11

Debt Communication

The Do's and Don't about Debt Communication

The FDCPA is very specific about what a 3rd Party agent making calls to consumer accounts can
and can not do. While as a 1st part agent you may not be liable under this law, it is important to
note some of the guidelines that will benefit you and D&S when communicating to customers
about their debt.
DO GE T T O T H E DI SC USSI N G TA L K I N G T O STAT E T H E R E A SO N
WH
R I GH T PE R SO N DE TA I L S AT T O R N E Y 'S F OR TH E C ALL

Getting to the right person means talking to a person that can resolve the account. For
commercial accounts, this is often the AP or accounts payable o ce. Communication of the debt
owed and the problem preventing payment can only be resolved by talking to the person who
understands the situation and has the ability to resolve it.

For consumer accounts, this is usually the person whose name is on the account. While there are
no o cial restrictions preventing you from talking to others, it is a good practice to only talk to
the consumer or a spouse. It is also acceptable to talk to parents if the consumer is a minor.

DO GE T T O T H E DI SC USSI N G TA L K I N G T O STAT E T H E R E A SO N
WH
R I GH T PE R SO N DE TA I L S AT T O R N E Y 'S F OR TH E C ALL
When talking to consumers, agents should be considerate of not discussing details except with
the:

Consumer (account holder)

Spouse of the consumer

Parents of the consumer (if a minor)

As a first-party agent, there are no rules prohibiting you from discussing details with others,
however, it could be considered a violation of trust to disclose account details about the debt to
3rd parties. Anyone not associated directly with the account is considered a 3rd Party. This
includes but is not limited to

Neighbors

Co-workers

Friends

Commercial account details can be discussed with anyone within the business associated with the
account. This includes secretaries, tech support, accounts payable, and more, but keep in mind
that getting to the right person means figuring out who can actually resolve the account and get
the account balance settled.
DO GE T T O T H E DI SC USSI N G TA L K I N G T O STAT E T H E R E A SO N
WH
R I GH T PE R SO N DE TA I L S AT T O R N E Y 'S F OR TH E C ALL

Agents who talk to consumers that advise they are being represented by an attorney should
contact their supervisor for further direction. Typically either the supervisor or someone from
client services will reach out to the client to discuss the next steps to be taken.

DO GE T T O T H E DI SC USSI N G TA L K I N G T O STAT E T H E R E A SO N
WH
R I GH T PE R SO N DE TA I L S AT T O R N E Y 'S F OR TH E C ALL
When talking to the right person you should always state the reason for the call during your
introduction. Let the consumer know

1. Who you are

2. The name of the company you are calling from (Client)

3. The reason for your call: That you are calling about an outstanding debt

The wording for an introduction will vary from agent to agent, but the information conveyed
should be consistent to avoid confusion and establish trust.

DO GE T T O T H E DI SC USSI N G TA L K I N G T O STAT E T H E R E A SO N
WH
R I GH T PE R SO N DE TA I L S AT T O R N E Y 'S F OR TH E C ALL
As a general guideline, we do not call customers before 8 AM or after 9 PM unless specifically
advised by the consumer or business. There are times that we must call outside of this time to
accommodate customers due to work and sleep schedules. This is something that the customer
will advise and should then be noted for future callbacks.

DO GE T T O T H E DI SC USSI N G TA L K I N G T O STAT E T H E R E A SO N
WH
R I GH T PE R SO N DE TA I L S AT T O R N E Y 'S F OR TH E C ALL

1st Party agents are not required to give the mini-Miranda rights. The mini-miranda is given at
the beginning of a call and states that you are a debt collector attempting to collect a debt and that
all information will be used for that purpose.

This is only for 3rd Party agents calling on non-commercial accounts. Don't let a consumer or
commercial account holder scare you into thinking you have violated this by not stating it. 1st
Party agents are not required to give the mini-miranda

Complete the content above before moving on.

Knowledge Check

Read each question below and answer accordingly to check your understanding of what you
read. You may refer back to the above course for help in answering.

True or False: Commercial account details can be discussed with

anyone within the business associated with the account.
 True

False

SUBMIT

You may need to talk to a 3rd party when trying to find location
information about a customer. Which are considered 3rd party
contacts? Mark all that apply:

Friend

Co-Worker

Neighbor

Spouse
 SUBMIT

True or False: When talking to consumers, agents should be

considerate of not discussing details except with the account holder,
their spouse, or parent.

True

False

SUBMIT

True or False: Agents should proceed with collections as normal

should a customer tell them that they are represented by an attorney.

True
 False

SUBMIT

Fill in the blank:

As a general guideline, we do not call customers before ___ AM or
after 9 PM unless specifically advised by the consumer or business.

Type your answer here

SUBMIT

True or False: 1st Party agents are not required to give the mini-
miranda.

True
False

SUBMIT

Complete the content above before moving on.

Lesson 5 of 11

Harassment and Abuse

Harassment and abuse are never allowed or tolerated

within the D&S Culture. Integrity and professionalism
must always come rst when dealing with customers,
clients, or internal issues.

Remember that all calls, emails, and instant messages are

recorded.
  Violations demonstrating harassment or abuse will result
in disciplinary actions up to and including termination.

C O NT I NU E

The Use or Threats of Violence

The use or threat of violence or any other ways of
harming a person, his or her reputation or property will
not be tolerated. Customers should always be treated
with respect and consideration.

C O NT I NU E

2
There are many scenarios and techniques used by other collection agencies to resolve an
account that falls under harassment and abuse. Below is a shortlist of just a few examples to
avoid.

1 The use of obscene, profane or abusive language

2 Making a list of delinquent consumers for publications

3 Threatening to sell a debt in order to induce payment

4 Making a telephone ring with intent to abuse or harass

5 Engaging anyone in conversation repeatedly with intent to annoy, abuse, or harass

6 Making telephone calls without meaningful disclosure of the caller's identity.

(Identify your self and do not lie about who you are or why you are calling)

7 Constantly interrupting the customer to control the call

Harrasment and Abuse

The use of obscene, profane Constantly interrupting the

or abusive language customer to control the call
 Making telephone calls
without meaningful
Making threats of violence
disclosure of the callers
identify

Integrity and Professionalism

Asking if there are any

Using expressions and terms
additional concerns before
that show respect
ending the call

Allowing the customer to Addressing each concern of

nish their thought before the customer, taking
speaking again ownership of the problem

C O NT I NU E
Lesson 6 of 11

False and Misleading Representations

Lying and dishonesty never work -- and it is a great human

tragedy that people think dishonesty can work 'for a good
motive

D&S Culture
There are those that believe the means justify the end. Lying,
dishonesty, false, and misleading representations are never
justifiable actions, especially when having a professional
business conversation. The D&S culture focuses on integrity
and professionalism, seeking to develop these core qualities
through the e orts of our employees.

Let's take a closer look at several collection practices that

undermine these core qualities and damage our relationship
with both client and customer.

C O NT I NU E

Agents should never use false or deceptive tools to

accomplish your job.

Agents should never steal, cheat, lie, or mislead the

consumer.
  Directions: Read each example then ip it over for the de nition
for each type of false or misleading representation.

De nition:
Example 1: Falsely implying that a debt
Hi, I am with the US dept collection collector is in way af liated with the
program calling about a past due US government or any State: This
balance includes invoking the name of your
state in your talk off

Example 2:
Example 2:
This debt is currently in legal
collections, however, I have the
authority to handle this outside of a
courtroom
Example 3:
Failure to pay this debt in full is in
violation of the debtor law and
carries strict penalties
Example 4:
I am calling from the law rm of
Smith & Winchester about a past-
due debt you owe
De nition:
Misrepresenting the character,
amount or legal status of a debt
De nition:
Falsely implying that an act
committed by the debt is illegal or
speci c legal consequences will
occur if they don't pay
De nition:
Falsely representing that an
individual is an attorney or a
communication is from an attorney
Example 5: De nition:
State law allows for up to 30 days in Threatening arrest or
jail until a payment arrangement imprisonment due to
nonpayment
has been maid for the full balance.

Example 6:
I know you want to keep this quiet
so your family doesn't nd out
about this legal infraction of non-
debt payment
De nition:
Insinuating that a consumer has
committed a crime or other such act
that which would embarrass the
consumer

Complete the content above before moving on.

 2

Knowledge Check
Use the above information to assist you with
the following exercise

Drag and Drop each example to the corresponding practice (definition)

Hi, I am with the US dept

Falsely implying that a debt
collection program
collector is in way a liated with
calling about a past due
the US government
balance

State law allows for up to

Threatening arrest or
30 days in jail until a
imprisonment due to
payment arrangement
nonpayment
has been made

This debt is currently in

legal collections, Misrepresenting the character,
however, I have the amount or legal status of a debt
authority to handle this

I am calling from the law

Falsely representing that an
firm of Smith &
individual is an attorney or a
Winchester about a past-
communication from an attorny
due debt

SUBMIT
Complete the content above before moving on.
Lesson 7 of 11

Unfair Practices

Agents must guard against using unfair practices.

These will undermine the trust of both client and
customer. Let's look at a few examples of what
unfair practices look like.
Examples of Unfair Practices

1. Agents should never collect any money that is

specifically not authorized by the agreement
creating the debt

This includes the following

 Interest

Fees

Additional Charges

Any additional charges such as those listed above must show in Dragon and therefore were part
of the original agreement between the customer and our client.

C O NT I NU E

Remember:

Do not attempt to collect on anything outside of

what you show in Dragon or the client's system.
Don't make threats of any kind you can not back up or have not been authorized to do.
2. Threatening dispossession or disablement of the consumer
property if you have no right or intention of doing so. In other
words, you can't make a threat against someone's property
being used for payment if you don't have the authority or
ability to make it happen.

C O NT I NU E
Lesson 8 of 11

Disputes and Payment

Disputes
Disputes are disagreements regarding what is owed by the consumer. There are many reasons
for disputes. The following are a few examples of disputes you may encounter.

1 Consumer claims wrong amount listed on the invoice

2 Consumer claims that payment was already made for partial or the full amount owed

3 Claim that services or product were not provided

4 Claim that product was returned and that nothing is owed

 C O NT I NU E

Validating a dispute: (Gathering evidence)

Remember that a dispute is only a claim until it is verified by our client. The list above is not an
exhaustive list. The agent is responsible for gathering facts and evidence to support the
disputed claim made by the customer. This includes but is not limited to:

1 Payment verification: Bank statements, copy of processed check...etc

2 Email communications between the customer and our client supporting the claim

3 Tracking numbers and documents to support the return of merchandise

4 Contracts or other documents stating agreed price between consumer and client
Proof of debt

The customer has the right to request proof of the debt.

These are often in the form of invoices or documentation
showing what is owed and the services or product rendered.
You will either be given the ability to re-create these
documents and send it to the customer directly or you will
make a request to the client.

C O NT I NU E

Disputes & Payments

1 Accounts in dispute can not be collected until the dispute is resolved and or
direction is given by the client as to how to proceed. Only once the dispute has been
reviewed by the client and action recommended may collection activities continue.

2 Some customers may attempt to refuse to make any payment until all disputes are
resolved, nevertheless collections e orts should be made on non-disputed
amounts and invoices. It is not unreasonable to ask the customer to pay on an
undisputed amount or invoices while disputes are being reviewed.

3 Payments received should never be applied to disputed invoices or amounts.

Payments must be made to invoices as outline by the customer.

C O NT I NU E
 3

Finding a way
Where the road leads, I will go. Along the stark desert, across the wide plains, into the deep
forests I will follow the call of the world and embrace its ferocious beauty.

Which are examples of common disputes? Select all that apply.

Consumer claims wrong amount listed on the invoice

Consumer claims payment already made

Consumer claims services or product were not

provided

Consumer claims no knowledge about the debt

SUBMIT

Fill in the blank: The agent is responsible for gathering facts and
_______ to support the disputed claim made by the customer

Type your answer here

 SUBMIT

True or False: Agents may apply payments to any invoice or amount.

True

False

SUBMIT

Complete the content above before moving on.

Lesson 9 of 11

Summary

Knowledge isn't power until it's applied

Dale Carnegie

Key Takeaways
You should now have a better understanding of the FDCPA and how it applies to you as a 1st part
agent and have a full understanding of the following

1 Demonstrate an understanding of terms and vocabulary for the FDCPA and 1st party
collection expectations

2 Di erentiate between who the FDCPA e ects and does not with regards to
collection standards

3 Recognize good and bad collection practices as associated with the reason for
creating the FDCPA

4 Understand and demonstrate 1st party collection guidelines that uphold the D&S
company philosophy

Resources
Below is a PDF version of this course. Download it and save it on your computer for future
reference!

 Now its time for your nal evaluation. Click continue to begin

C O NT I NU E
Lesson 10 of 11

Quiz

This test consists of 10 questions. You must pass this test to complete the course. A passing grade of 70
percent or higher is required.
Question

01/10

Conveying information to any person about a debt is which term?

Communication

Debt Validation

Dispute Claim

Location Information
Question

02/10

Which does the FDCPA not apply to? Select all that apply

1st Party Collections

3rd Party Collections

Consumer Accounts

Collection e orts in the USA

The FDCPA applies to everything in this list

Question

03/10

When calling commercial accounts, agents may only talk to people listed on the
account about details of the debt.

True

False
Question

04/10

Which is an example of harassment and abuse

The use of obscene, profane or abusive languages

Collecting any money that is specifically not authorized by the

agreement creating the debt

Falsely implying that a debt collector is in any way a liated with

eh US government or any State

Threatening arrest or imprisonment due to nonpayment

Question

05/10

Payments can be applied to disputes at the discretion of the agent

False

True
Question

06/10

Match the following terms

Conveying information to any person

Communication
about a debt

The person obligated or allegedly

Commercial Account
obligated to pay a debt

Provides a service or sells physical

Debt Collector
products to consumers

A person who is collecting on a debt

Consumer
owed to and on behalf of another
Question

07/10

When talking to consumers, agents should be considerate of not discussing

details except with the account holder, their spouse, or parent.

True

False
Question

08/10

Select all statements that are true about disputes.

Accounts in dispute can not be collected until the full dispute is

resolved and or direction is given by the client as to how to
proceed.

Payments received should never be fully applied to invoices or

amounts that are disputed

Payments received should be applied to fully disputed invoices to

make sure they get resolved faster.

The agent is responsible for gathering facts and evidence to

support the fully disputed claim made by the customer

A fulldispute is only a claim until it is verified by our client

Question

09/10

Collecting any money that is specifically not authorized by the agreement, such
as interest or fees that create the debt is an example of?

Unfair practices

False and misleading representations

Harassment and abuse

There is nothing wrong with this

Question

10/10

Constantly interrupting the customer to control the call is an example of?

Harassment and abuse

Unfair practices

False and misleading representations

There is nothing wrong with this

Lesson 11 of 11

Course Completion

Congratulations: You are now FDCPA Certi ed to work on Early

Stage/ 1st Party Accounts
Click the EXIT COURSE button or select EXIT COURSE at
the top to return back to D&S University.

To complete the course and mark your progress, click EXIT COURSE.

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