TOPICS

Thursday, September 6, 2018

Call Center Scripts

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