Compliance with collection law is one of the most critical issues faced by today’s financial institutions. The consequences of failing in these efforts can have significant legal consequences that include significant fines. One of the biggest aspects of this challenging area of banking revolves around the increasing wave of complaints being filed by today’s consumers. This combined with the rise of further regulations governing this area of banking has made for quite a challenge to today’s financial institution managers. With these points in mind, the role of high-quality banking software is more important than it has ever been before when discussing the issue of bank compliance with collections law.
A Troubling Rise in Complaints
One of the most consistent issues that continue to arise in the realm of consumer complaints is the claim that they have been contacted regarding a debt that they claim is not theirs. There is also a significant rise in complaints from consumers stating that they have not been properly notified about debt through proper communication channels. This is a significant reason why loan recovery and collection software is of increased importance in today’s banking environment. Utilizing the right software provides a tremendous boost to institutions who are working hard to stay in compliance while doing so in an efficient manner. CARM-Pro has consistently become one of the most popular software programs for use in this regard.
A Complicated Issue
The supervision and regulation of banks are overseen by the organization known as the Office of the Comptroller of Currency. This organization made headlines when it ordered a fine of $30 million to be paid by Bank of America for breaches of compliance. This event was a significant reminder to all institutions in the banking industry of the severe consequences that can be levied for failing to remain in compliance with the laws regarding collection. This point serves to further drive home the need for financial institutions to use every tool at their disposal when working toward compliance success in the area of debt collection.
The Benefits of Using the Right Software
In recent years, CARMS-Pro has become a great asset to the banking industry in the constant push to achieve regulatory compliance. This innovative software program is notable for its dependability and this has made it a go-to tool for banking institutions that are looking to prevent problems before they happen. The added efficiency and awareness that this software program provides has made it an essential part of today’s collection process.
The Challenges That Must Be Met
Two of the most significant challenges that are wrapped up in this topic of regulatory compliance are the areas of management of third party vendors and issues regarding governance. Today’s financial institutions must also succeed in the challenges that they will face regarding the process of examination. This means that the issue of cybersecurity, website control, social media channel security, and password protection is more important than ever. Much of this drills down to site design, hosting companies, SEO practices and SSL integration.
An institution’s security must comply with the regulations imposed by governing bodies. The law known as the Gramm-Leach-Bliley Act allows for today’s banking institutions to outsource the areas of management of information. Regardless of this fact, liability for remaining in compliance with regulations rests squarely on the shoulders of the financial institution. It is the responsibility of the institution itself to handle notification of all relevant agencies and clients in the case that a breach of security occurs. This is another relevant reason that the right software can play a major role in ensuring that today’s financial institutions do not get caught off guard regarding these important issues.