The Impact of the Receivables Management Certification Program on Litigation

SACRAMENTO, Calif. -- Last week, the Receivables Management Association International (RMAI) released a white paper analysis of the impact of the Receivables Management Certification Program (RMCP) on litigation. A before-and-after analysis of lawsuits filed against businesses certified through the RMCP found that after certification, litigation against RMAI’s certified businesses, as an average, decreased by 20.8% in the seven-year span from 2012 to 2018. Looking at a breakdown of the litigation by areas of law, the lawsuits filed against violations to the Fair Debt Collection Practices Act (FDCPA), the Fair Credit Reporting Act (FCRA), and the Telephone Consumer Protection Act (TCPA) experienced similar declines after certification. 

However, during the same time horizon, litigation activity involving companies in the overall accounts receivables industry increased by 3.1%. Lawsuits with FDCPA, FCRA, and TCPA violations experienced a 3.5% decrease, 13.5% increase, and a 26.7% increase, respectively. 

“RMCP certified businesses set the global standard in the industry. The program is designed for consumer protection and industry best practices. The significant decrease in adverse litigation for certified businesses is a testament to the strength of the certification program.” – Rance Willey Chair of the RMAI Certification Council. 

Consumer protection is the primary goal of the RMCP. Because the program’s standards meet, exceed, or are unprecedented in existing state and federal regulations, consumers are assured stronger and more stringent protections when dealing with RMCP certified businesses. 

The correlation between the RMCP and a statistically significant decrease in lawsuits, as well as decreases in specific actions (FDCPA, FCRA, and TCPA) for certified businesses after earning their certification designation, demonstrates the effect of the program’s high standards and focus on accountability. 

The complete whitepaper can be found here. 

A one-page infographic highlighting the results of the analysis can be found here.

About Receivables Management Association International

Receivables Management Association International (RMAI) is the nonprofit trade association that represents more than 500 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. RMAI 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, and breaking news alerts. Founded in 1997 as the Debt Buyers Association, RMAI is headquartered in Sacramento, California.