The Client
A Residential Mortgage Servicer
Challenge
- Examiner reviews indicating that one or more debt collectors had failed to send the validation notice within five days of the initial communication to the consumer regarding the collection of the debt
Solution
- Failure to provide the notice in a timely manner prevents consumer’s from raising any concerns and dispute incorrect/ invalid debt owed on the account
Execution
- The Copasys® solution:
- Highlights loans transferred by a prior servicer and helps validate that requirements were completed
- Highlights consumers with active initial debt collection notices and prompts the auditor to ensure debt
- Validation notices were sent within the stipulated timeframe and with the appropriate information required
- Audit result is published as ‘Compliant’ when the notice is provided to the consumers within required timeframe with appropriate information and ‘Non-compliant’ when notices are not provided at all or when the notices are provided after the required timeline
Value Delivered
- Initiating certain SOT and collection-related rules along with effective remediation activities helps:
- Significantly reduce the consumers’ risk of inappropriate and/ or invalid debt collection practices
