The deadline has passed, and the new Consumer Financial Protection Bureau (CFPB) guidelines are now in effect as of December 3, 2024. As we begin the new year, it’s essential to assess your compliance strategies to ensure that you’re fully aligned with these updated regulations. The changes require a proactive approach to validating, verifying, and substantiating debts, and it’s vital to avoid any gaps that could lead to compliance violations or damage your reputation.
With the new regulations in place, collectors must implement robust systems to substantiate medical debts, verify the accuracy of charges, and ensure compliance with federal and state laws. The updated CFPB guidelines place a spotlight on the verification of medical debts to protect consumers from unfair practices, and a comprehensive compliance plan is no longer optional—it’s a necessity.
Developing a Strong Compliance Plan for 2025
To start the year on the right foot, here are the steps to develop a strong compliance plan that ensures adherence to the new CFPB guidelines:
- Conduct a Compliance Audit: Review all debt validation processes to identify any gaps. Verify that your records are complete, including payment histories, patient agreements, and evidence of compliance with charity care policies. An internal audit can reveal where improvements are needed and prevent potential issues before they escalate.
- Integrate Real-Time Account Updates: Ensuring that your records are updated in real time is critical under the new guidelines. Collectors must avoid attempting to collect on paid or settled debts, and access to real-time account information ensures accurate and compliant collection activities.
- Strengthen Staff Training: Ongoing training is a must for compliance. Staff should be fully educated on the new guidelines and understand the procedures for verifying debt validity, documenting charges, and responding to consumer inquiries. Training programs should be interactive, including real-world examples to help staff fully understand the new regulatory requirements.
- Leverage Technology for Verification: Utilizing AI-driven technology can greatly improve the accuracy and efficiency of debt substantiation. Advanced data analytics can help identify inconsistencies before they lead to compliance violations, ensuring that all collection activities are based on the most current and accurate data.
- Collaborate with Healthcare Providers: A strong partnership with healthcare providers is essential to meet the CFPB requirements. Medical providers must provide the necessary documentation to validate debts before they are sent to collections. Working closely with providers ensures that all documentation, including signed patient agreements and payment records, is available and compliant.
TSI: Your Partner in Compliance
TSI is here to help you navigate these changes and ensure that your operations are fully compliant in the new regulatory environment. Our advanced validation processes, seamless system integration, and dedicated compliance team work together to keep you ahead of regulatory requirements. By leveraging our technology, expertise, and commitment to compliance, you can focus on your core business activities while we ensure that all collection efforts meet the CFPB’s standards.
Conclusion
Starting the new year with a solid compliance plan is crucial for staying ahead of regulatory changes and avoiding costly penalties. The new CFPB guidelines are designed to protect consumers and promote fair practices in medical debt collection. By proactively adapting to these changes, you can ensure that your organization remains compliant, avoids disputes, and builds trust with consumers.
TSI is committed to providing the support, technology, and expertise you need to navigate these changes and thrive in the evolving landscape of debt collection. Let us help you stay compliant and continue delivering exceptional service in 2025.
