aca international’s code of ethics and code of operations ethical considerations for the credit...

ACA International’s ACA International’s

Code of Ethics and Code of Ethics and Code of OperationsCode of Operations

Ethical Considerations for Ethical Considerations for the Credit and Collection the Credit and Collection

IndustryIndustry© 2007 ACA International. All Rights Reserved.

““Particularly in this day and age of complex regulatory Particularly in this day and age of complex regulatory requirements, companies err if they assume that requirements, companies err if they assume that their tone can be set by having effective procedures their tone can be set by having effective procedures and policies in place. Having effective procedures and policies in place. Having effective procedures and policies is certainly necessary, but it’s not and policies is certainly necessary, but it’s not sufficient. A company must also have the right sufficient. A company must also have the right people in leadership positions, leaders who are people in leadership positions, leaders who are truthful, transparent, and fair, just as they expect truthful, transparent, and fair, just as they expect their companies and employees to be. That means their companies and employees to be. That means leaders must not only talk the talk, they must also leaders must not only talk the talk, they must also walk the walk … a whole succession of technological walk the walk … a whole succession of technological revolutions can’t do away with the need for revolutions can’t do away with the need for character or the ability to think and act ethically.”character or the ability to think and act ethically.”

Harvey Pitt, former Chairman of the SECHarvey Pitt, former Chairman of the SEC

© 2007 ACA International. All Rights Reserved.

What does “ethics” What does “ethics” mean?mean?1 1 the discipline dealing with what is good the discipline dealing with what is good

and bad and with moral duty and obligationand bad and with moral duty and obligation

2 a:2 a: a set of moral principles a set of moral principles:: a theory or a theory or system of moral values system of moral values

b: b: the principles of conduct governing an the principles of conduct governing an individual or a groupindividual or a group

c:c: a guiding philosophy a guiding philosophy

d:d: a consciousness of moral importance a consciousness of moral importance

Source:Source: Merriam-Webster’s Online Dictionary: Merriam-Webster’s Online Dictionary: http://mw1.merriam-webster.com/dictionary/Ethicshttp://mw1.merriam-webster.com/dictionary/Ethics


Why do businesses and Why do businesses and industries need ethics industries need ethics programs?programs? Avoid hidden costs associated with Avoid hidden costs associated with

unethical behaviorunethical behavior

Increase productivityIncrease productivity


Hidden costs of unethical Hidden costs of unethical behaviorbehavior Harms client relationshipsHarms client relationships

Increases risks for scandalIncreases risks for scandal

Increases risk of employee fraudIncreases risk of employee fraud


Good business ethics can Good business ethics can drive productivitydrive productivity Put the mission first, above personal Put the mission first, above personal

considerationsconsiderations

Use common language of values, to Use common language of values, to increase mutual understandingincrease mutual understanding

Make sure your organization lives up Make sure your organization lives up to your employees’ valuesto your employees’ values


Good business ethics can Good business ethics can drive productivity (cont.)drive productivity (cont.) Make ethics decisions in groupsMake ethics decisions in groups

Develop a code of ethics and code of Develop a code of ethics and code of conduct, and stand behind themconduct, and stand behind them

Fully support the ethics program Fully support the ethics program and set the exampleand set the example


Good business ethics can Good business ethics can drive productivity (cont.)drive productivity (cont.)

Foster transparency and trustFoster transparency and trust

Strengthen your business ethics skillsStrengthen your business ethics skills

Understand that no one’s perfectUnderstand that no one’s perfect

Pay attention to the little thingsPay attention to the little things

Source: Source: Josephson Institute Reports Josephson Institute Reports www.josephsoninstitute.orgwww.josephsoninstitute.org


ACA’s Code of EthicsACA’s Code of Ethics

Last updated in 1997Last updated in 1997

July 25, 2007, ACA’s Board of July 25, 2007, ACA’s Board of Directors approved the new Code of Directors approved the new Code of Ethics and Code of OperationsEthics and Code of Operations

Passage of the new code was Passage of the new code was accompanied by the adoption of new accompanied by the adoption of new Procedural RulesProcedural Rules


Promote and encourage “the Promote and encourage “the highest level of integrity” highest level of integrity” within the industrywithin the industry

Cooperate and abide by the Cooperate and abide by the Association’s self-regulation efforts Association’s self-regulation efforts (Ethics Rule I.D)(Ethics Rule I.D) Definition of MemberDefinition of Member

Adopt an internal code of conduct Adopt an internal code of conduct (Ethics Rule II.A.8.)(Ethics Rule II.A.8.)

Place any ACA member on notice of any Place any ACA member on notice of any alleged violation and seek to identify a alleged violation and seek to identify a solution (Ethics Rule II.B.10)solution (Ethics Rule II.B.10)


Be fair and respectful to Be fair and respectful to employees, associates, employees, associates, competitors, customers, the competitors, customers, the public and employerspublic and employers

Treat consumers with consideration Treat consumers with consideration and respect (Ethics Rule II.A.1)and respect (Ethics Rule II.A.1)

Communicate with consumers with Communicate with consumers with honesty and integrity (Ethics Rule honesty and integrity (Ethics Rule II.A.2)II.A.2)

Avoid threatening or initiating Avoid threatening or initiating collection litigation on time barred collection litigation on time barred debts (Ethics Rule II.A.6)debts (Ethics Rule II.A.6)


Commit to the development Commit to the development and use of the highest and use of the highest standards and practices for standards and practices for processing and handling processing and handling consumer, customer and consumer, customer and competitor disputescompetitor disputes Cooperate with self-regulation efforts, Cooperate with self-regulation efforts,

complaint resolutioncomplaint resolution Designate contact person “having Designate contact person “having

sufficient responsibility to deal with sufficient responsibility to deal with consumer complaints” (Ethics Rule I.E)consumer complaints” (Ethics Rule I.E)

Promptly respond to all complaints Promptly respond to all complaints

(Ethics Rule I.F)(Ethics Rule I.F)


Validation Requests, Validation Requests, Verification and DisputesVerification and Disputes

Upon receipt of a written request for Upon receipt of a written request for verification from a consumer, suspend verification from a consumer, suspend collection activities on the account and collection activities on the account and provide debt verification, or provide debt verification, or

If agency chooses not to provide verification If agency chooses not to provide verification or is unable to provide verification, cease or is unable to provide verification, cease collection activity, remove derogatory credit collection activity, remove derogatory credit items (if any) from consumer’s credit items (if any) from consumer’s credit record, and notify client/credit grantor that record, and notify client/credit grantor that collection activity was terminated due to the collection activity was terminated due to the inability to provide verification of the debt inability to provide verification of the debt (Ethics Rule II.A.3)(Ethics Rule II.A.3)


Validation Requests, Validation Requests, Verification and Disputes Verification and Disputes (cont.)(cont.)

If requested by the consumer in writing, If requested by the consumer in writing, notify the consumer that collection notify the consumer that collection efforts have been terminated by the efforts have been terminated by the member (Ethics Rule II.A.3.d)member (Ethics Rule II.A.3.d)


Credit Reporting (Operations Credit Reporting (Operations Rule II.B)Rule II.B)

Obtain authorization of the creditor, Obtain authorization of the creditor, forwarder or party holding title to the forwarder or party holding title to the account to perform credit reportingaccount to perform credit reporting

Accurately report date of delinquency Accurately report date of delinquency as required by the FCRAas required by the FCRA

Take reasonable steps not to report Take reasonable steps not to report information that is currently furnished information that is currently furnished by another data furnisherby another data furnisher

Delete information upon canceling and Delete information upon canceling and returning an accountreturning an account


Purchasing AccountsPurchasing Accounts

When purchasing accounts, seek to When purchasing accounts, seek to obtain access to accurate and complete obtain access to accurate and complete information and establish a chain of information and establish a chain of title (Ethics Rule II.A.7)title (Ethics Rule II.A.7)


Financial IntegrityFinancial Integrity

Meet financial obligations (Ethics Rule Meet financial obligations (Ethics Rule I.G)I.G)

Make settlement with clients at least Make settlement with clients at least once each calendar month (Operations once each calendar month (Operations Rule II.A.1)Rule II.A.1)

Comply with contractual obligations to Comply with contractual obligations to NACHA (Ethics Rule II.A.5)NACHA (Ethics Rule II.A.5)


Prevention of Identity TheftPrevention of Identity Theft

In instances of alleged identity theft, In instances of alleged identity theft, fraud or mistaken identity, conduct a fraud or mistaken identity, conduct a reasonable investigation to determine reasonable investigation to determine the validity of the debt, the identity of the validity of the debt, the identity of the obligor on the account and the the obligor on the account and the accuracy of the information in the accuracy of the information in the possession of the member (Ethics Rule possession of the member (Ethics Rule II.A.4)II.A.4)


Data Security and PrivacyData Security and Privacy

Use reasonable efforts to safeguard the Use reasonable efforts to safeguard the confidentiality, integrity and availability of confidentiality, integrity and availability of consumer information entrusted to the consumer information entrusted to the member’s possession and control (Ethics member’s possession and control (Ethics Rule II.B.4)Rule II.B.4)

Any healthcare account forwarded for Any healthcare account forwarded for collection must be serviced according to a collection must be serviced according to a business associate agreement between the business associate agreement between the Forwarder and Forwardee (Operations Forwarder and Forwardee (Operations Rule IV.X)Rule IV.X)


So what now?So what now?

Frequently Asked Frequently Asked QuestionsQuestions


Additional QuestionsAdditional Questions

Please direct any questions you have Please direct any questions you have to [email protected] [email protected].


These materials are not legal, accounting, orThese materials are not legal, accounting, orconsulting advice and should not be relied upon consulting advice and should not be relied upon

asassuch. Attendees should consult with such. Attendees should consult with

independentindependentlegal, accounting or consulting professionals forlegal, accounting or consulting professionals foradvice pertaining to their operation and uniqueadvice pertaining to their operation and uniquefacts and circumstances.facts and circumstances.

ACA InternationalACA International


aca international’s code of ethics and code of operations ethical considerations for the credit...

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