DBA International Spells Out Certification Program Requirements

In February 2013, DBA International launched its Receivables Management Certification Program. This “gold standard” certification program promotes uniform, consumer-oriented, best practice standards for the receivables industry.

The goal of the Receivables Management Certification Program is to raise the bar; not just meet the bar. Since program standards exceed many current statutory and regulatory requirements for the industry, it is essential to apply the program prospectively.

What are the benefits of DBA’s certification program?

DBA’s objective is to include the entire collection cycle, from debt purchase, agency and litigation, into an effective compliance network built on standardized “best practices.” The certification program assures consumers and regulators that certified members monitor, enforce and comply with state and federal laws protecting consumers at every stage of the collection cycle, while also extending to the consumer a reasonable and fair opportunity to remediate their debt.

Banks and Regulators are beginning to acknowledge and respect this program and the companies that are certified stand to receive special recognition and respect in a heavily scrutinized environment. DBA Certified Companies are increasingly only doing business with other DBA Certified companies in an effort to limit their risk and exposure in a heavily scrutinized environment.

Find out which DBA member companies have received Receivables Management Certification here.

Why does DBA certify companies?

By establishing uniform, national, best practice standards, DBA ensures that its certified members exceed the consumer protection requirements of state and federal law.

What is the benefit of certification to those who work or interact with the financial industry?
Banks and other issuers recognize the value of compliance integration, which comes from working with debt buying companies, law firms and collection agencies that hold a unified set of consumer-oriented, industry best practices. Consumers who communicate with certified companies have the assurance of knowing they uphold the industry’s highest standards and place a premium on transparency in all facets of the consumer-interaction process.

Companies that have completed the certification process note the confidence gained through excellent control over their business processes, resource expenditures and performance results and measurements.

What does DBA do to ensure that its process is up-to-date and relevant?

The Receivables Management Certification Program requires a mandatory annual review of the program requirements to ensure they evolve with industry best practices and incorporate any new statutory, regulatory and judicial developments.

What types of compliance audits do companies undertake and when do the audits take place?
From the self-compliance audit prior to submitting the certification application to on-going external audits throughout the program, the first of which takes place within two years of initial certification, consumers are provided assurances that the company is complying with the high standards outlined in the certification program. Certified DBA member companies undertake the following types of audits:

• Self-Compliance Audit – Performed prior to the initial application and every two years thereafter when reapplying for certification. Companies must attest to the self-compliance audit on initial application and will be subject to independent third party verification.
• Full Compliance Audit – Performed by an independent third party auditor prior to the first certification renewal period (year two), and then every three to four years thereafter.
• Limited Compliance Audit – Performed by an independent third party auditor in response to specific and credible third party allegations of non-conformity to the standards. The Certification Audit Committee can perform a Limited Compliance Audit at any time.

How does the certification program benefit the industry in the long run?

The certification program demonstrates to regulators, creditors and consumers that the industry is self-regulating and holds itself to a higher standard. The legislative and regulatory communities view the program positively which opens the doors of communication and gives DBA International a seat at the table in discussions on proposed laws, rules and regulations. Banks and other issuers recognize is the value of the certification program and integrate all or most of the program requirements into their due diligence process.

Regulatory trends require the cross-discipline network compliance established in DBA’s Receivables Management Certification Program. Recent enforcement activities and consent decrees confirmed the necessity for all credit-cycle participants to be in compliance alignment to ensure consumer protections and reduce the risk of a violation. The integrated compliance standards outlined in DBA’s certification program moves the entire industry forward while providing appropriate consumer protection.

Find more information about the Receivables Management Certification Program here.

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Editor’s note: insideARM is an authorized provider of certification credits. Those items that qualify include this notice: “This product is approved for DBA International Certification Credit.”