Before outsourcing debt collections to third-party vendors, should financial institutions properly notify relevant debtors? Can outsourcing vendors charge debtors any fee?
1] Before outsourcing debt collections to a third-party vendor, a financial institution should inform relevant debtors in writing. The content of such written notifications should include the name of the outsourcing vendor, the debt to be collected, the records retention period for files that record conversations between debtors and staff members of outsourcing vendors, operational principles of the outsourcing vendor, and the contact phone number of the financial institution. 2] Outsourcing vendors and their staff members are strictly prohibited from receiving funds intended as payment of debt, or from charging any fee to debtors or related parties.