 |
 |
 |
 |
 |
 |
 |
|
COMMERCIAL COLLECTION AGENCY ASSOCIATION
OF THE
COMMERCIAL LAW LEAGUE OF AMERICA
CODE OF ETHICS
All members of the Commercial Collection Agency Association of the Commercial Law League
of America shall conduct their business in accord with this Code of Ethics, and their
membership in the Association shall be conditioned on their continuing conduct in accord
with this Code of Ethics.
Each member shall:
(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 all charges to the creditor. Service charges by the
member are separate and apart from commissions and fees earned by a receiving attorney. A
full accounting of any withdrawal fees charged must be provided to the creditor.
(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.
(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
(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.
* The following Interpretations have been adopted under the Code:
It shall be considered contrary to high standards of "courtesy in the conduct of
business" within the meaning of Association 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)
Approved by the Association - July 4, 1977
Amended July, 1991, July, 1998 and May, 1999
.
© 2008 Stuart Allan & Associates, Inc.
E-mail us: information@StuartAllan.com