1.
In general conduct:
a.
Maintain a high standard of fairness, honesty and courtesy in the
conduct of business and avoid any activity which would bring reproach
on this profession or this Association. *
b.
Provide efficient collection service in the territory served; protect
the interest of creditors; and give prompt and diligent attention
to all claims received for collection.
c.
Operate under a name which does not imply or suggest that the agency
is a branch of or associated with any department of the federal
government, a local government or any court. The letterhead of the
agency should clearly indicate that the agency is in the collection
business.
d.
Make certain that all personnel are familiar with this Code of Ethics
and that they fully comply with it.
e.
Avoid the unauthorized practice of law by complying fully with the
Declaration of Fair Practices of Collection Agencies approved by
the Board of Governors of the Commercial Law League, appended hereto
as Appendix 1.
2.
In relations with creditors:
a.
Comply with instructions given by creditors in the processing of
a claim promptly or give reasons for not doing so and ask for further
instructions.
b.
Maintain a trust account separate and apart from the member's operating
account which should be titled as "Client" or "Customer
Trust Account" and into which all debtor payments and attorney
remittances shall be deposited by the agency. All remittances to
creditors should be from the trust account only.
c.
Identify clearly and accurately all charges to the creditor. Service
and administrative charges by the member are separate and apart
from commissions and fees earned by a receiving attorney. Court
cost and suit fees requested by an attorney must be communicated
to the creditor as communicated by the attorney to the member. A
full accounting of any withdrawal fees charged must be provided
to the creditor at the time withdrawal fees are assessed.
d.
Remit to creditors as specified by the debtor where a number of
claims against the same debtor are being collected.
e.
Within 30 days after the close of a calendar month during which
monies are collected for a creditor, account in writing and remit
to that creditor all monies collected and received during the month
less commissions and service charges. If the amount due the creditor
is less than $100., remittance may be deferred for an additional
30 days, provided such deferral of remittance is approved by the
creditor.
f.
Not permit any creditor to use any forms, letters or other material
bearing the member's name as a preliminary service for which no
charge is made in the collection of a debt (free demand service),
unless such form, letter or other collection material states that
the debt will be placed with the member for collection if it is
not paid within a specified period of time after the date thereon.
g.
Advance court costs and suit fees on behalf of a creditor only at
the creditor's specific request, and bill the creditor for such
costs and fees at the same time they are forwarded to an attorney.
h.
Display the Official Association Logo on the letterhead of all correspondence
sent to creditors and where other locations are listed, the identification
of Branch (full service), Sales or Collection office must be shown.
3.
In relations with debtors:
a.
Avoid deceptive practices, statements or materials which would cause
debtors to believe they are dealing with someone other than the
member. A member when contacting a debtor shall not engage in any
subterfuge such as stating they are a private investigator conducting
an investigation of the debtor.
b.
Show due consideration for debtor's problems and deal with them
according to the merits of their individual cases.
c.
In the event a claim is disputed, obtain from the creditor and provide
the debtor with such documents or information necessary to validate
the debt.
d.
Avoid any harassment by telephone or personal calls.
e.
If the debtor states that he is represented by an attorney and identifies
him or if the agency is contacted by debtor's attorney, then the
agency shall deal directly with the attorney. However, should the
attorney fail to respond to calls or letters from the agency, then
the agency may continue to contact and negotiate with the debtor.
f.
Not represent that, if payment is not received by a specific date,
a claim will be placed with an attorney or litigation will be commenced,
unless:
(i)
the representation indicates that such action has been authorized
by the creditor, and
(ii)
such representation is true
g.
Threaten to damage a debtor's credit reputation if they do not pay
or fail to cooperate by notifying other vendors and financial institutions
that deal with the debtor.
4.
In relations with attorneys:
comply
with the Operative Guides adopted by the Commercial Law League of
America, appended hereto as Appendix 2, as they may from time to
time be amended, in the absence of specific agreement to the contrary.
It shall
be considered contrary to high standards of "courtesy in the
conduct of business" within the meaning of Section 1(a) of the
Code of Ethics for an officer or partner of a commercial collection
agency to initiate communications with an employee of another agency
for the purpose of employing that employee without first advising
an officer or partner of the other agency; but this does not apply
where an employee of an agency responds to a public advertisement
or initiates discussion of employment with another agency. (Adopted
by Association November 22, 1977)
It shall
be deemed contrary to "high standards of fairness, honesty"
in the conduct of business under Section 1(a) of the Code of Ethics
for a member to give a credit manager any inducement to place accounts
with the member, other than normal business entertainment or nominal
gifts. (Adopted by Association July 13, 1981)
It shall
be considered contrary to "high standards of fairness in the
conduct of business" within the meaning of Section 1(e) of the
Code of Ethics for a member to request that a receiving attorney write
a demand letter to a debtor for a stipulated fee, where the claim
had not been forwarded to the attorney on behalf of the creditor.
(Adopted by Association July 25, 1998)