Making It Work
for Debt Collectors


One year after the COVID pandemic was declared, the majority of U.S. workers continue to work from home.

According to the latest Gallup poll, 56% of the American labor force is now working remotely at least some of the time, while 33% always work from home. Many debt collectors are included in those figures, but there have been a few hiccups along the way.

Licensing Restrictions

Under normal circumstances, in order to work from a residence, some states have specific requirements for debt collectors, such as requiring that the agency register an agent’s home address as a “branch office” with the state regulatory board. (In addition, local level regulating agencies may also have licensing requirements in place for “home offices.”)

During the COVID pandemic, the regulators with such requirements have relaxed this restriction and allowed an exception to the licensing requirement.

AG Law is licensed to practice in the states of Pennsylvania, New York, New Jersey, and Maryland.  Below is a summary of the current licensing requirements in these states as they apply to working remotely during this pandemic:

Pennsylvania – Until further notice, collections staff in Pennsylvania are permitted to work from home without standard licensing restrictions.

New York – Unlike Pennsylvania, the state of New York requires collection agencies to implement remote-work procedures “to the maximum extent possible.” This mandate will continue until further notice.

New Jersey – Although this State does not require a license, there is still scrutiny to make sure collectors abide by the applicable rules.

Maryland – Effective January 29, 2021, the Maryland Commissioner of Financial Regulation set procedures into place for debt collectors to work remotely. The regulation is currently valid for six months but could become permanent. The new regulation includes the following requirements:

  1. The employee location cannot receive mail or physical payments and cannot be used for document storage. The location must also provide a workspace that is secure in order to protect the personal information of consumers.
  2. Security protocols and monitoring must be in place, including required procedures in the event of a data breach.
  3. Proper employee supervision must be implemented. If a regulator determines that a licensee does not provide adequate supervision of an employee, the collector’s permission to work from home can be terminated.

PLEASE KEEP IN MIND OTHER STATES HAVE WORK-FROM-HOME REQUIREMENTS WHICH ARE NOT COVERED IN THIS ARTICLE.  WE RECOMMEND THAT YOU INVESTIGATE SUCH REQUIREMENTS FOR YOUR SPECIFIC STATE.

A Success Story

AG Law attorney Josh Gindin sat down to talk with us about a work-from-home success story he experienced with a client collection agency.

The company in question employs 80 to 100 staff members. As the agency’s clients imposed work-from-home requirements, that company immediately put in place a work-from-home program allowing its agents to work remotely. With minimal disruption to the business, the hands-on management group supervised the transition and the work continued to flow smoothly.

The Quick Migration

The agency immediately purchased laptops and issued one to every collector, ensuring that each device was properly interfaced with the agency’s servers.  All information and privacy security protocols required by clients, federal and state regulators were followed.

Over one weekend, the collectors were all up and running, but not without several modifications to the agency’s standard operating practices. For instance, instead of formal face-to-face meetings among management or with employees, communication is now handled electronically through emails, text messaging and virtual meetings.

Also, while collection calls are still being monitored to meet strict compliance requirements, violations are treated via email with a compulsory response, instead of a face-to-face supervisory meeting.

To maintain a closeness with and among the employees normally derived by their interaction at work, management began scheduling periodic company-wide Zoom meetings; every staff member participates. Gindin stated that, “while the employees have always been a rather tight-knit group, they are now even more supportive of each other in these difficult circumstances.”

The Bottom Line

Despite the challenging environment, the agency’s results were better than expected. Agents maintained their focus and were able to perform their duties flawlessly.

In fact, the change has worked so well for this company that it is considering the option of allowing collectors to continue to work from home on a full-time or part-time basis, or return to the call center once the pandemic is declared as over. (And assuming that licensing requirements allow for these options.)

For other agencies that are considering the move to remote work, Gindin offers this bit of advice:

“You must have constant communication. It is not like being in a call center, where you can walk up and down the aisle to talk with people. You must maintain regular communication and stay on top of the entire process, performance, discipline and compliance,” he said.

“Communication is the glue that holds the entire process together.”


Sources:
Featured Image: Adobe, License Granted
US News
Inside ARM
ACA International
CNBC
Arbeit Software