Complaint Management from Cradle to Grave
5/31/2016
Complaint Management from Cradle to Grave Learn to capture, categorize, analyze and respond to complaints to satisfy clients and regulators
1
5/31/2016
Presenters Elizabeth A. Conklin Director, Audit, Training & Development ACA Certified Instructor McCarthy, Burgess & Wolfe Bedford Heights, OH
Andrew C. Hall, Esq., CCEP Legal Compliance Officer & General Counsel Credit & Collection Compliance Officer Estate Information Services, LLC Columbus, OH
Legal Disclaimer Any content included in this presentation or discussed during this session (“Content”) is presented for educational and general reference purposes only. ACA International, either directly or indirectly through speakers, independent contractors, employees or members of ACA International (collectively referred to as “ACA”) provides the Content as a courtesy to be used for informational purposes only. The Contents are not intended to serve as legal or other advice. ACA does not represent or warrant that the Content is accurate, complete or current for any specific or particular purpose or application. This information is not intended to be a full and exhaustive explanation of the law in any area, nor should it be used to replace the advice of your own legal counsel. ACA is the sole owner of the Contents and all the associated copyrights. ACA hereby grants a limited license to the Contents solely in accordance with the copyright policy provided at www.acainternational.org. By using the Contents in any way, whether or not authorized, the user assumes all risk and hereby releases ACA from any liability associated with the Content. The views and opinions of the speakers expressed herein are solely those of the presenters and not ACA International.
2
5/31/2016
Why care about complaints? • Lets us know something might be wrong with company process/policy • Something might be wrong with client process/policy • Complaint Management System required as part of “effective” CMS • CFPB directive
What is the CFPB Looking At? Consumer Complaint Response
An effective compliance management system should ensure that a supervised entity is responsive and responsible in handling consumer complaints and inquiries. Intelligence gathered from consumer contacts should be organized, retained, and used as part of an institution’s compliance management system. Consumer Complaint Response – Examination Objectives Examiners will consider consumer complaints to determine whether:
1. Consumer complaints and inquiries, regardless of where submitted, are appropriately recorded and categorized. 2. Complaints and inquiries, whether regarding the entity or its service providers, are addressed and resolved promptly. 3. Complaints that raise legal issues involving potential consumer harm from unfair treatment or discrimination, or other regulatory compliance issues, are appropriately escalated. 4. Complaint data and individual cases drive adjustments to business practices as appropriate. 5. Consumer complaints result in retrospective corrective action to correct the effects of the supervised entity’s actions when appropriate. 6. Weaknesses in the compliance management system exist, based on the nature or number of substantive complaints from consumers. CFBP Supervision and Examination Manual v. 2 – October 2012
3
5/31/2016
Stages of Complaint Management Capturing/logging the complaint Categorizing the complaint Analyzing the complaint Responding to the complaint Remediating and testing
What is a Complaint? According to the CFPB, a complaint is an item that “Expresses dissatisfaction with, or communicates suspicion of wrongful conduct by, an identifiable entity related to a consumer’s personal experience with a financial product or service.”
CFPB Company Portal Manual
4
5/31/2016
Capturing the Complaint Difference between complaints, disputes, and requests for debt validation DV requests and disputes should be captured separately, but they are not complaints Note: some clients may direct you to capture disputes and complaints together
How Do I Capture a Complaint? Define “Complaint” Documented Policy Training Mechanism Systemic (built-in) Manual (Spread sheet)
5
5/31/2016
Systemic Capture
Manual Capture
YOUR COMPANY NAME COMPLAINT LOG Consumer Name
Date
Client
Client Account Number
Category Sub-Category
Details of Complaint
Investigation
Remediation Needed
Date Resolved
6
5/31/2016
Intake/Categorizing Verbal Complaints Client Consumer Regulatory Body Attorney Written Complaints Consumer E-Oscar Regulatory Body Attorney
Investigating/Categorizing
Investigate all complaints/disputes Call recordings Account documentation Collector interviews Phone reports Written communication Client Portfolio
7
5/31/2016
Categorizing
Complaint Preventable Unpreventable Unsubstantiated
Dispute Merit No Merit Unsubstantiated
Categorizing
8
5/31/2016
Best Practice Use the CFPB categories and subcategories to organize your complaints CFPB expects us to use the information it disseminates Engage senior management on regular basis to review complaints
What Happened ?– Analyzing the Complaint Determine Root Cause What caused the complaint to occur? Use “5 Whys” – keep asking “why” until cause determined Usually can determine in 5 questions
9
5/31/2016
“5 Whys” – Sample Root Cause Analysis Why did this happen? A: Sally called the consumer after C & D Why did Sally do that? A: She didn’t follow policy/procedure Why did she not follow policy/procedure? A: She was unaware of the policy. Why was she unaware of the policy? A: She was never trained on it ROOT CAUSE – gap in training policy requiring all collectors to know C & D procedures prior to getting on phones
Analyzing – Additional Inquiry What controls do we have in place? Are controls detective or preventative? Are controls adequate Was complaint preventable? How can we ensure this does not happen again?
10
5/31/2016
Complaint Analysis Knowing what happened is 1st step to fixing issue Problem can be due to policy/procedure, or can be systemic Problem can be wide-spread, or isolated Regardless of what problem is, it has to be identified before it can be fixed If your car won’t start, mechanic has to do diagnostic to determine what repairs are necessary CFPB expects us to have as part of our CMS the ability to detect and correct problems/issues
Trend Analysis Evaluating trends can also provide valuable information about your company, your clients, and products/services Robust system for logging complaints can allow us to determine many factors Complaints during certain time period (monthly) Complaints by client Complaints by type (BBB, lawsuits, etc.) Complaints by category (calling practices, letter issues, etc.) Complaints by product Complaints by collector
11
5/31/2016
Responding
Respond in a timely fashion Stay organized! Be mindful of deadlines/due dates State the facts Stay away from sharing information not raised in the complaint Never point blame/accept blame Offer resolution/next steps
Responding
Complaint templates Read the response out loud Response approval if needed Retention Actual complaint & response Investigation
12
5/31/2016
Responding
Resolution Coaching/Discipline Action Special account handling Incentivizing/decentivizing
Remediation and Testing Once we know what went wrong, we need to fix it to make sure it doesn’t happen again. Fix can be an updated policy/procedure, training, personnel reassignment, and/or a systemic control Tailor fix to the particular issue – no over-kill Whatever the “fix”, it must be tested Testing must be independent – don’t use Ops to test an Ops procedure fix Utilize Internal Audit to the extent possible Document test (or re-test) results
13
5/31/2016
Questions? Elizabeth Conklin [email protected] Andrew Hall [email protected] Thank You!
Session Evaluation Please take a moment to complete the evaluation for this session using the Convention Mobile App on your mobile device • • • •
Find this session on the ‘Schedule’ tab Scroll down to ‘Forms’ Select ‘Session Evaluation’ Respond to the survey and press submit! Please also complete the overall Convention 2016 evaluation
14
Complaint Management from Cradle to Grave Learn to capture, categorize, analyze and respond to complaints to satisfy clients and regulators
1
5/31/2016
Presenters Elizabeth A. Conklin Director, Audit, Training & Development ACA Certified Instructor McCarthy, Burgess & Wolfe Bedford Heights, OH
Andrew C. Hall, Esq., CCEP Legal Compliance Officer & General Counsel Credit & Collection Compliance Officer Estate Information Services, LLC Columbus, OH
Legal Disclaimer Any content included in this presentation or discussed during this session (“Content”) is presented for educational and general reference purposes only. ACA International, either directly or indirectly through speakers, independent contractors, employees or members of ACA International (collectively referred to as “ACA”) provides the Content as a courtesy to be used for informational purposes only. The Contents are not intended to serve as legal or other advice. ACA does not represent or warrant that the Content is accurate, complete or current for any specific or particular purpose or application. This information is not intended to be a full and exhaustive explanation of the law in any area, nor should it be used to replace the advice of your own legal counsel. ACA is the sole owner of the Contents and all the associated copyrights. ACA hereby grants a limited license to the Contents solely in accordance with the copyright policy provided at www.acainternational.org. By using the Contents in any way, whether or not authorized, the user assumes all risk and hereby releases ACA from any liability associated with the Content. The views and opinions of the speakers expressed herein are solely those of the presenters and not ACA International.
2
5/31/2016
Why care about complaints? • Lets us know something might be wrong with company process/policy • Something might be wrong with client process/policy • Complaint Management System required as part of “effective” CMS • CFPB directive
What is the CFPB Looking At? Consumer Complaint Response
An effective compliance management system should ensure that a supervised entity is responsive and responsible in handling consumer complaints and inquiries. Intelligence gathered from consumer contacts should be organized, retained, and used as part of an institution’s compliance management system. Consumer Complaint Response – Examination Objectives Examiners will consider consumer complaints to determine whether:
1. Consumer complaints and inquiries, regardless of where submitted, are appropriately recorded and categorized. 2. Complaints and inquiries, whether regarding the entity or its service providers, are addressed and resolved promptly. 3. Complaints that raise legal issues involving potential consumer harm from unfair treatment or discrimination, or other regulatory compliance issues, are appropriately escalated. 4. Complaint data and individual cases drive adjustments to business practices as appropriate. 5. Consumer complaints result in retrospective corrective action to correct the effects of the supervised entity’s actions when appropriate. 6. Weaknesses in the compliance management system exist, based on the nature or number of substantive complaints from consumers. CFBP Supervision and Examination Manual v. 2 – October 2012
3
5/31/2016
Stages of Complaint Management Capturing/logging the complaint Categorizing the complaint Analyzing the complaint Responding to the complaint Remediating and testing
What is a Complaint? According to the CFPB, a complaint is an item that “Expresses dissatisfaction with, or communicates suspicion of wrongful conduct by, an identifiable entity related to a consumer’s personal experience with a financial product or service.”
CFPB Company Portal Manual
4
5/31/2016
Capturing the Complaint Difference between complaints, disputes, and requests for debt validation DV requests and disputes should be captured separately, but they are not complaints Note: some clients may direct you to capture disputes and complaints together
How Do I Capture a Complaint? Define “Complaint” Documented Policy Training Mechanism Systemic (built-in) Manual (Spread sheet)
5
5/31/2016
Systemic Capture
Manual Capture
YOUR COMPANY NAME COMPLAINT LOG Consumer Name
Date
Client
Client Account Number
Category Sub-Category
Details of Complaint
Investigation
Remediation Needed
Date Resolved
6
5/31/2016
Intake/Categorizing Verbal Complaints Client Consumer Regulatory Body Attorney Written Complaints Consumer E-Oscar Regulatory Body Attorney
Investigating/Categorizing
Investigate all complaints/disputes Call recordings Account documentation Collector interviews Phone reports Written communication Client Portfolio
7
5/31/2016
Categorizing
Complaint Preventable Unpreventable Unsubstantiated
Dispute Merit No Merit Unsubstantiated
Categorizing
8
5/31/2016
Best Practice Use the CFPB categories and subcategories to organize your complaints CFPB expects us to use the information it disseminates Engage senior management on regular basis to review complaints
What Happened ?– Analyzing the Complaint Determine Root Cause What caused the complaint to occur? Use “5 Whys” – keep asking “why” until cause determined Usually can determine in 5 questions
9
5/31/2016
“5 Whys” – Sample Root Cause Analysis Why did this happen? A: Sally called the consumer after C & D Why did Sally do that? A: She didn’t follow policy/procedure Why did she not follow policy/procedure? A: She was unaware of the policy. Why was she unaware of the policy? A: She was never trained on it ROOT CAUSE – gap in training policy requiring all collectors to know C & D procedures prior to getting on phones
Analyzing – Additional Inquiry What controls do we have in place? Are controls detective or preventative? Are controls adequate Was complaint preventable? How can we ensure this does not happen again?
10
5/31/2016
Complaint Analysis Knowing what happened is 1st step to fixing issue Problem can be due to policy/procedure, or can be systemic Problem can be wide-spread, or isolated Regardless of what problem is, it has to be identified before it can be fixed If your car won’t start, mechanic has to do diagnostic to determine what repairs are necessary CFPB expects us to have as part of our CMS the ability to detect and correct problems/issues
Trend Analysis Evaluating trends can also provide valuable information about your company, your clients, and products/services Robust system for logging complaints can allow us to determine many factors Complaints during certain time period (monthly) Complaints by client Complaints by type (BBB, lawsuits, etc.) Complaints by category (calling practices, letter issues, etc.) Complaints by product Complaints by collector
11
5/31/2016
Responding
Respond in a timely fashion Stay organized! Be mindful of deadlines/due dates State the facts Stay away from sharing information not raised in the complaint Never point blame/accept blame Offer resolution/next steps
Responding
Complaint templates Read the response out loud Response approval if needed Retention Actual complaint & response Investigation
12
5/31/2016
Responding
Resolution Coaching/Discipline Action Special account handling Incentivizing/decentivizing
Remediation and Testing Once we know what went wrong, we need to fix it to make sure it doesn’t happen again. Fix can be an updated policy/procedure, training, personnel reassignment, and/or a systemic control Tailor fix to the particular issue – no over-kill Whatever the “fix”, it must be tested Testing must be independent – don’t use Ops to test an Ops procedure fix Utilize Internal Audit to the extent possible Document test (or re-test) results
13
5/31/2016
Questions? Elizabeth Conklin [email protected] Andrew Hall [email protected] Thank You!
Session Evaluation Please take a moment to complete the evaluation for this session using the Convention Mobile App on your mobile device • • • •
Find this session on the ‘Schedule’ tab Scroll down to ‘Forms’ Select ‘Session Evaluation’ Respond to the survey and press submit! Please also complete the overall Convention 2016 evaluation
14
