Industry Trends

Where AI Fits into the CFPB’s New Proposed Rules

One of the CFPB’s new proposed debt collection rules concerns a consumer’s consent to electronic communications. Creditors are required to keep track of those individual e-sign records if they’re to transfer those accounts to servicers, or they may contact individual consumers about the 3rd party transfer, and offer an opportunity to opt-out.

Unsurprisingly to us, InsideARM recommends “new system development and new data communication streams to be supported by creditors in servicers” to stay compliant with these proposed new rules.

At Pairity, the transfer of consent is a simple data point in a constellation of data that we leverage for our machine learning models. And because AI can easily facilitate “new data communication streams,” and maintain those streams and records in real time, an AI platform that connects creditors, servicers, and third-party collectors is an obvious choice.

Another potentially sweeping regulation is third-party oversight for creditors; essentially documented vetting of the servicers with whom accounts are placed. Pairity Marketplace has a rigorous vetting system and only admits qualified sellers, buyers, and servicers, with built-in documentation for compliance.

Furthermore, third-party servicers need to show they can “maximize their ability to use existing consumer contact information to begin collection efforts,” which is entirely what Pairity’s numerous historical data points are engineered to do.

Learn more here.


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