QUESTION
We recently got into trouble with our regulator due to our call center scripts.
Based on their audit, they determined that our scripts were discriminatory. This
happened even though we planned our scripts carefully and thought they would
not cause violations. The on-site examiner is now requiring us to do call calibration.
So, can you provide some kind of guidelines for call calibration?
ANSWER
I don’t mean to be immodest, but I really think you should contact us
for detailed guidance. We are one of the few risk management firms in the
country that have a practice area devoted to call calibration compliance. I
strongly recommend that a financial institution get call calibration done periodically
throughout the call center’s existence. This is an area of compliance just
filled to the brim with potential regulatory violations!
First, a word about the purpose of call calibrations. When a financial
institution provides call center contact with the public, it is critical to
ensure that supervisors and agents do not cause compliance or procedural
issues. This is not merely a matter of good customer service. And any contact
with the public is subject to call calibration. Obviously, having consistency
about products and services is an important factor in communicating knowledgeable
responses. But, even one errant word or suggestion can cause a serious
regulatory problem. If an examiner finds a pattern of violative statements, the
road to an administrative action may quickly result. This is why calls should
be screened by a monitoring firm for quality assurance, preferably a firm with considerable
regulatory compliance expertise. The process of this screening is called call
calibration. And the results of the screening are provided in a report.
With respect to guidance, a creditor may not make any oral or written
statement(s), in advertising or otherwise, to applicants or prospective
applicants, where such statements could be construed to discourage on a prohibited
basis a reasonable person from making or pursuing an application. Although the
provisions of the Equal Credit Opportunity Act (ECOA) and Regulation B address
persons who are applying for or have received an extension of credit, an "anti-discouraging
rule" generally applies to prospective applicants. Many states watch call center
activity, too, within the context of their regulatory frameworks.
Prohibited practices include:
1. A statement that the applicant should not bother
to apply, after the applicant states that he or she is retired;
2. The use of words, symbols, models or other forms
of communication in advertising that express, imply, or suggest a
discriminatory preference or a policy of exclusion in violation of the ECOA;
and,
3. The use of interview scripts that discourage
applications on a prohibited basis. [12 CFR § 202.4(b); as CFR Supplement I to Part 202 –
Official Staff Interpretations § 202.4(b)-1]
These are just a few prohibited practices. Call
centers expose a financial institution to many more violations. Proper
regulatory compliance guidance combined with appropriate procedures and detailed
call calibration can provide considerable protection from regulatory
challenges. If you want to contact us, we offer a free one-hour consultation to
discuss these matters. CLICK HERE to arrange a conference.
Jonathan Foxx
Managing Director
Lenders Compliance Group
