Implementing the Fair Debt Collection Initiative for Auto Dealerships

The Fair Debt Collection Practices Act (the “FDCPA” or “Act”) applies to “debt collectors” who collect consumer debts. The definition of “debt collector” is broadly defined as: “any person who uses any instrumentality of interstate commerce or the mails in any business the principal purpose of which is the collection of any debts, or who regularly collects or attempts to collect, directly or indirectly, debts owed or due or asserted to be owed or due to another.”  

The FDCPA generally forbids deceptive, false or misleading practices, prohibits harassment and abuse in connection with debt collection, and provides non-exhaustive lists of what conduct constitutes a prohibited collection practice.  The FDCPA also gives consumers the right, within 30 days after receiving an initial communication from a “debt collector,” to request validation of the alleged debt and imposes a requirement on debt collectors to inform the consumers of that right within 5 days after the initial communication.  Finally, the FDCPA limits what a debt collector can say to third parties when trying to locate the consumer. 

Implementation Steps in this Guide

1. Edit and Distribute the The Fair Debt Collection Practices Act Policy

2. Distribute the The Fair Debt Collection Practices Act Interactive Policy Training

3. Distribute the The Fair Debt Collection Practices Act Assessment

Edit and Distribute the The Fair Debt Collection Practices Act Policy

Edit the policy

1. Click on the Library tab
2. Search for "The Fair Debt Collection Practices Act Policy" and click on it
3. Click on the Edit button to view the list of versions
4. Click Create Draft to the right of the latest published version
5. Click Edit next to the Draft version that you just created
6. Make desired changes to the policy
7. Click Publish when you have finished editing the policy

Schedule the activity for distribution

1. Click on the Workspaces tab
2. Click on the Consumer Finance workspace
3. Click on the Fair Debt Collection initiative
4. Click on the The Fair Debt Collection Practices Act Policy
5. Click on Groups and assign to the appropriate groups, such as general managers, executives, controller, finance managers, collection agents, or equivalent.
6. Click on Schedule and set an annual schedule based on the Hire Date. We recommend that you set the Immediate Distribution option to Yes. 
7. Click Save

Distribute the The Fair Debt Collection Practices Act Interactive Policy Training

1. Click on the Workspaces tab
2. Click on the Consumer Finance workspace
3. Click on the Fair Debt Collection initiative
4. Click on the The Fair Debt Collection Practices Act Interactive Policy Training
5. Click on Groups and assign to the appropriate groups, such as general managers, executives, controller, finance managers, collection agents, or equivalent.
6. Click on Schedule and set an annual schedule based on the Hire Date. We recommend that you set the Immediate Distribution option to Yes. 
7. Click Save

Distribute the The Fair Debt Collection Practices Act Assessment

1. Click on the Workspaces tab
2. Click on the Consumer Finance workspace
3. Click on the Fair Debt Collection initiative
4. Click on the The Fair Debt Collection Practices Act Assessment
5. Click on Groups and assign to the appropriate groups, such as general managers, executives, controller, finance managers, collection agents, or equivalent.
6. Click on Schedule and set an annual schedule based on the Hire Date. We recommend that you set the Immediate Distribution option to Yes. 
7. Click Save