How to Implement AI Debt Collection Calls in Line with FCA Rules

January 23, 2025Regulatory Compliance

The Financial Conduct Authority (FCA) has established comprehensive guidelines for implementing AI debt collection calls in the UK. These regulations ensure fair treatment of debtors while allowing businesses to leverage automation effectively.

Basic Compliance Issues to Consider

Operate within normal working hours (e.g., only between 8 am and 9 pm on working days).
Obtain explicit consent to receive automated calls (e.g., include this in your terms).
Display valid contact numbers during calls (ensure the outbound number can be called by the recipient and be transferred to a real agent).
Keep detailed records of all interactions.
Respect TPS (Telephone Preference Service) and CTPS registrations.
Implement robust opt-out mechanisms (ensure the debtor can opt out of being called).

Follow Ethical Standards

Limit the number of calls made to each debtor.
Detect signs of emotional distress.
Provide an easy way for debtors to connect with a human agent.

Communication and Transparency

Clearly identify the organization making the call.
Provide relevant contact information upon request.
Use simple, understandable language.
Avoid complex legal jargon.
Ensure accuracy regarding claims and all existing information.

Protecting Vulnerable Customers

Monitoring for signs of financial difficulty or distress.
Recognizing patterns that indicate vulnerability.
Escalating cases to human agents when vulnerabilities are detected.
Providing appropriate support and guidance.
Maintaining detailed records of vulnerability assessments.

Data Privacy

Correctly identifying each debtor before proceeding with a claim.
Securely storing interaction records.
Maintaining and updating consent records.
Providing an easy opt-out process and data deletion option.
Tracking and recording all communications.

Best Practices for Implementation

Test AI agents thoroughly to ensure compliance with guidelines.
Verify the recipients of calls are accurately identified.
Continuously monitor calls for quality and outcomes.
Exercise caution when communicating with individuals under duress.
Restrict the frequency of calls to avoid harassment.
Establish clear procedures for escalating complex cases.
Protect and securely manage case data.

Conclusion

FCA regulations provide a robust framework for implementing AI in debt collection. By adhering to these rules, organizations can leverage AI voice agents to enhance efficiency while maintaining fair treatment of debtors. Compliance should be seen not as a constraint but as an enabler of technology adoption and a foundation for building trust in automated AI debt collection processes.