Operations & Process Management Flashcards

An agency receives a new portfolio with many bad phone numbers and addresses. Which process should come first?

Answer: Skip tracing and data hygiene before outbound campaigns

Good contact data is a prerequisite, so skip tracing and scrubbing come before outreach.

What is the main purpose of a trust account in a third-party collection agency?

Answer: Holding client funds separate from the agency's operating money until remittance

Trust accounts keep collected client money separate, as many state licensing laws require.

Under Regulation F, how long must a debt collector generally keep records showing its compliance?

Answer: 3 years from the last collection activity on the debt

Reg F (12 CFR 1006.100) requires keeping records for three years after the last collection activity on a debt.

A consumer sends a written dispute within the validation period. What must the collector do with collection activity?

Answer: Stop collecting the disputed debt until verification is mailed to the consumer

Under FDCPA Section 809(b), collection must stop until verification is provided after a timely written dispute.

Which approach best handles very large balances that need a skilled negotiator?

Answer: Routing them by balance tier to a specialized senior team

Balance-based routing sends high-value accounts to experienced agents, where skill has the biggest effect on recovery.

What does a roll rate measure in delinquency management?

Answer: The percentage of accounts moving from one delinquency bucket to the next

Roll rates track how accounts move between aging buckets (for example, 30 to 60 days) and help predict losses.

In process improvement, what does the 'C' stand for in the DMAIC method?

Answer: Control

DMAIC stands for Define, Measure, Analyze, Improve, Control, and Control keeps the gains in place.