SACRAMENTO, Calif. – As of August 1, 2017, the Receivables Management Association
International’s (RMA’s) Receivables Management Certification Program (RMCP) has been expanded to include first-in-the-nation criteria for the purchase of judgments.
“The purchase of pre-judgment receivables is quite different than the purchase of judgments,” said Mark Naiman, RMA Board President. “The nature of the asset changes through the awarding of a judgment which necessitates obtaining data and documents unique to the new asset class. RMA takes great pride in the continuing evolution and refinement of the best practices contained in its national certification program and ultimately aims to strengthen the single compliance footprint available to the financial services industry for the protection of consumers.”
Among the major substantive changes contained in version 5.1:
- Appendix A – Standard # 18 (Purchase & Sale Documentation Requirements) – Makes revisions to incorporate specific requirements for the purchase and sale of judgments. The current standard focuses exclusively on the purchase and sale of pre- judgment receivables.
- Appendix A – Standard # 19 (Representations & Warranties) – Strengthens the existing standard to require that “best efforts” be used to obtain specified representations and warranties.
- Appendix A – Standard # 20 (Due Diligence) & Standard # 21 (Sale Restrictions) – Moves the current “due diligence” requirements that are a part of Standard #21 to its own standard (Standard # 20) to highlight the importance RMA places on due diligence.
The RMCP is designed to provide rigorous uniform industry standards for the purchase, sale, and collection of debt by debt buying companies, collection agencies, collection law firms, receivables brokers, and creditors. The program offers companies the opportunity to enhance business operations by voluntarily adopting consumer protection standards that go above and required by state and federal laws and regulations.
To ensure that RMA certified companies fulfill Certification Program requirements, companies are monitored through limited and full compliance audits performed by independent third party auditors, as well as through a structured self-compliance audit process.
You can access the new version of the RMCP by clicking here.
About Receivables Management Association International
Receivables Management Association International (RMA) is the nonprofit trade association that represents more than 550 companies that purchase or support the purchase of performing and nonperforming receivables on the secondary market. The Receivables Management Certification Program and Code of Ethics set the global standard within the receivables industry due to its rigorous uniform industry standards of best practice which focus on the protection of the consumer. RMA provides its members with extensive networking, educational, and business development opportunities in asset classes that span numerous industries. The association continually sets the standard in the receivables management industry through its highly effective grassroots advocacy, conferences, committees, task forces, publications, webinars, teleconferences, and breaking news alerts. Founded in 1997 as the Debt Buyers Association, RMA is headquartered in Sacramento, California.