ARM Communications Advisor

We made a compliance tool that teaches old dogs new tricks

Hate it when we do that!

 A leading national law firm,  Actuate Law LLC, asked us to build a system their clients could use to keep up with the latest federal, state and local regulations for debt collection, and to allow them to audit their agencies’ collection efforts across the country.

Facing substantial liability for violations of the Fair Debt Collection Practices laws,  clients needed a faster, more consistent way to track changes in regulations across the fifty states and to audit service providers in order to catch problems before they became serious.

Working with the law firm, we built the ARM (Accounts Receivable Management) Communications Advisor. It integrates legal advice and rule-based alerts into a search and review platform for fair debt collections practice auditing. Once they subscribe to this next-generation compliance system, clients can rest easy knowing their debt collection agencies are following the latest federal, state and local laws, all of which they can easily demonstrate to upstream clients (original debt holders) and to government regulators through regular audit reports.

Who was the old dog in this scenario?  The Accounts Receivable Management (ARM) industry.  And specifically the way it reviews collection letters. 

And the new tricks? Oh, just smart, surprisingly swift software that helps both creditors and service providers achieve greater compliance, less litigation, and quick, defensible, more thorough audits. 

The digital magic behind the ARM Communications Advisor lies in its ability to apply automated compliance to consumer letters and communications pieces.

Case Study: ARM Communications Advisor


Problem:
 Account receivable managers manage billions in overdue accounts across the U.S.

  • They face complex regulations by federal, state and local authorities.
  • Traditional collection processes are manual and error prone.
  • There is no easy way to get the latest updates on law and regulatory changes.

Facing substantial liability for violations of the Fair Debt Collection Practices laws,  clients needed a faster, more consistent way to track changes in regulations across the fifty states and to audit service providers in order to catch problems before they became serious.

Solution: Working with Actuate Law, we built the ARM (Accounts Receivable Management) Communications Advisor. It integrates legal advice and rule-based alerts into a search and review platform for fair debt collections practice auditing. Once they subscribe to this next-generation compliance system, clients can rest easy knowing their debt collection agencies are following the latest federal, state and local laws, all of which they can easily demonstrate to upstream clients (original debt holders) and to government regulators through regular audit reports.

Here is how it works

The goal of the ARM Communications Advisor is to allow clients to monitor debt collections practices of their collection agencies and law firms. Why do you need that? Because collection efforts are heavily regulated by federal, state and local authorities. Perhaps you have heard of the Fair Debt Collections Practices Act?  Our clients are lawful organizations but realizes that sometimes mistakes can be made. They want to catch them quickly and fix the problem. 

So, our clients use the ARM Communications Advisor to protect themselves from regulatory claims and protect consumers from improper debt collection. Here is how it works: 

  1. Upload consumer collection letters into the system.
  2. The system reviews each letter for rules violations.
  3. The system flags potential concerns based on the rules.
  4. Users can search for and review letters sent to consumers. 
  5. Users can see warning flags reflecting letters drawing concern.
  6. Users can send problem letters to counsel through the system. 
  7. Counsel can advise or alert management on the need to address issues.
  8. The system can generate reports and track audits that can be used at a later time.
Simple enough? That’s really all there is to it. 
But you may still be wondering: “How does the system get so smart?” The answer is “Magic,” but not “Digital Magic.” 
 
Rather, our legal partners are experts at federal and state collection laws and they keep up to date with the latest developments. We designed a system that allows them to transfer their knowledge into the system,  teaching it what to look for when new data is uploaded. They have impressive flexibility to develop their rules to apply to specific clients, states, letter types, text etc. The lawyers enter and maintain the rules. We make the technology work for our joint clients. 
See it in Action
Click on the right and left arrows to take a tour of ARM Communications Advisor

Benefits
We designed this tool specifically for anyone in the ARM industry who likes the idea of: 

  • Knowing that all of your communications are compliant and defensible.
  • Lowering risk and eliminating human error.
  • Avoiding costly and unpleasant litigation over collection communications.
  • Conducting internal audits and vetting new letter templates in one central place.
  • Beefing up your policies and procedures to support "bona fide error" defenses. 

We Can Build Something for You Too

This is a good example of digital workflow applied to legal review. If you need help managing compliance, with document review or legal process workflow, reach out. We would be happy to help. 

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