Stupid Question: If our bank only collects debts owed to the bank and not for anyone else, I see where we are not covered by the FDCPA. So does this mean that I don't need to audit this area since the bank technically is not a "debt collector" under this reg? Does this mean anything goes for the collectors at the bank collecting on behalf of the bank?

Although not technically covered, all the protections afforded consumers in the FDCPA are really common sense type things. We use to audit against them anyway to insure we were not risking lawsuits due to abusive collectors or unfair practices.

That is what I was hoping someone would say. I didn't want to hear "well, we are not covered, so why are you auditing it?" Thanks.

Remember too, that often a state will pass a law that mirrors a Federal one. In my case, as an example, FDCPA doesn't apply. But a similar Texas law does because if doesn't care that it is someone else's debt, it applies to us collecting our own. But the time to call and other requirements are similar.

I used to perform a similar audit at my previous employer just to verify we were doing things according to the regulation even though it didn't apply to us.

We have the same thing as Andy does here in SC. SC law has provisions that mirror FDCPA but apply to lenders collecting their own debts.