Compliance Key For Successful Collections

Robert R. Musick, practicing attorney with Thompson McMullan in Richmond, VA and key note speaker at the 2011 CR Software Users Conference May 11-13, told a standing room only crowd that "compliance is key to successful collections."

Musick provided examples of recent court cases to illustrate this point. He discussed the Bona Fide Error defense, Personal versus Commercial Debt disputes, and the FDCPA's application to social media, among other topics.

"Understanding the Bona Fide Error defense is critically important if you intend to rely on it in defense of a lawsuit," said Musick. "The recent Supreme Court decision in Jerman v Carlisle makes clear the bona fide error defense is not available for a mistaken interpretation of the law. It is the defendant's burden to prove that there was indeed a bona fide error notwithstanding reasonable procedures maintained to avoid such an error."

Musick also discussed the standard used in evaluating communications with debtors and the problems arising from poorly worded communications. In discussing his recent class action lawsuit, Landes v Cavalry Portfolio Services (E.D. Va. 2011), Musick discussed how the plaintiff's attorney attached a dunning letter that touted "tax season savings." The plaintiff alleged this constituted misleading behavior because the consumer may not actually save the percentage savings advertised due to the potential tax consequences of forgiven debt.

In dismissing the class Complaint and adopting Cavalry's position, the Court stated that no language in the FDCPA mandates such specific disclosures, and the consumer's case is based on a misreading of the dunning letter and applicable law.

Discussing the prevalence of social media, Musick noted that social media is growing as a primary means of communication for many individuals, and this means collection agencies must fully understand the boundaries. "Viewing non-private information is not likely to lead to a violation" Musick stated. "However, requesting to join a consumer's network to obtain information not available to the public may lead to a violation" he told the user's group.

About CR Software LLC

Established in 1984, CR Software has more than 27 years experience implementing collections recovery and debt management platforms, currently offering Titanium ORE, considered by industry experts the best open architecture platform on the market. Titanium ORE offers the enterprise organization a regulatory framework that facilitates compliance and an enhanced set of capabilities as the basis to dramatic increases in recovery revenue. As a Commercial off the Shelf (COTS) solution, it includes a configuration, flexibility and security unavailable from any other software provider.

CR Software corporate headquarters are located in Northern Virginia and can be reached by contacting Carol Byrne at This e-mail address is being protected from spambots. You need JavaScript enabled to view it or calling 800.222.1722. Visit CR Software's web site at www.crsoftwarellc.com.