If the Receivables Management Association International’s (RMAI) 2020 annual conference was any gauge of the accounts receivable management (ARM) industry’s future, I would say business is in for another good run. More than 1,300 debt buyers, first- and...
Data privacy and data security are two very hot topics in the ARM industry today. The California Consumer Privacy Act (CCPA) is set to take effect in January 2020, with additional privacy bills now pending in at least 25 states. Meanwhile, cyber crimes involving consumers’ personal data are growing in number, size, and sophistication.
Data privacy: Understanding and Preparing for the CCPA
“Information like name, email address, collections history, purchase history, payment history, and determinations that you make off this (this person is likely to pay on time, they’re not likely to pay on time)—all of those things were not considered personal information in the traditional sense under U.S. law. That all has changed.” – Odia Kagan
- Your headquarters are in California;
- Your employees are in California;
- Your company is incorporated in California;
- Your company satisfies the definition of a California foreign entity; or
- You conduct out-of-state sales or transactions into California.
Minimum business thresholds are defined as:
- You conduct business activities in California and your annual revenues exceed $25 million;
- You’re involved with personal data of more than 50,000 consumers, households, or devices (this could even include unique blog visitors); or
- Sales of personal information—including value acquired from its use (via data analytics, for example)—accounts for at least 50% of your annual revenues.
- Map your data flows and processes
- Determine your role under the law (independent business, service provider, or vendor)
- Look carefully at legal purpose as well as GLBA and FCRA exemptions and whether they apply
- Determine how you’ll comply with consumer requests within the required 45-day window
- Reevaluate your internal processes
- Plan for CCPA disclosure
“So it’s basically looking at processes, looking at the information, seeing how [you] get to it, how [you] can produce it. Then the other question is, ‘Once I know how to collect all of this information, how do I provide the disclosure that CCPA requires me to provide along with all the information I am giving?’” – Odia Kagan
Data security: Reducing the Risk and Impact of Cyber Crime
Have a specific plan in place
“Some of you saw there was a high-profile breach in the collection space earlier this year. One of the things that came out . . . was that maybe they took a little bit longer to get a plan in place and respond. And so at times, that can make the cost even greater or the damage even greater.” – Ben Johnson
Monitor operations in real time
Change the way you store old data
“[Data] almost was seen as a . . . valuable asset—to have all this data, all of this knowledge, all of this experience. And secondly, data storage is relatively cheap. So another year goes by, another million records go on the server. [ . . . ] I think as an industry, collectively, we’ve really got to start sharing best practices, talking about what we’re doing to get old files offloaded.” – Ben Johnson
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Disclaimer: Ontario Systems is a technology company and provides this blog article solely for general informational and marketing purposes. You should not rely on the content of this material for any other purpose or as specific guidance for your company. Ontario Systems’ advice, services, tools and products described herein do not guarantee compliance with any law or industry standard. You are ultimately responsible for your own company’s actions and compliance efforts. Because everyone’s situation is different, you must consult your own attorneys, accountants, and/or other advisors to obtain specific advice on your company’s compliance, legal, tax, regulatory and/or other business needs. Despite Ontario Systems’ efforts to provide current and up-to-date information, you need to recognize that the information contained herein may become outdated quickly and may contain errors and/or other inaccuracies.
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