B2B finance SaaSLicence for some flows

Debt collection software testing

FintechAssuranceLabs engineers test debt collection and loan recovery software used by collection agencies, debt buyers, and creditor recovery teams. Test scope covers payment plans, Regulation F call frequency limits, validation notice dates, electronic opt-outs, communication logs, post-charge-off interest, and contingency fee remittance. FintechAssuranceLabs engineers hand over collection flow evidence that a creditor, a licensing regulator, or an examiner can review.

What breaks in collection money flows

A collection platform earns a subscription plus a percentage of amounts collected, and every payment passes through contact, notice, payment plan, and remittance logic. Regulation F citations refer to 12 CFR part 1006 (eCFR current to 2026-09-14).

Call counter keyed to the phone number instead of the debt. Regulation F presumes compliance when a collector calls a person about a particular debt, meaning each debt in collection, no more than seven times within seven consecutive days and not within seven days after a telephone conversation about it (1006.14(b)(2) and (b)(4)). A per-number counter misses calls from a second number; a conversation logged only in the inbound IVR leaves the outbound campaign dialling the next morning. Counting unconnected calls, which 1006.14(b)(3)(ii) excludes, cuts right-party contacts, payments, and the percentage fee.
Validation period end date printed as send date plus 30 days. The validation period ends 30 days after the consumer receives the validation information, and the collector may assume receipt at least five days after providing it, excluding Saturdays, Sundays, and legal public holidays (1006.34(b)(5)). A letter engine that skips that assumption, or a holiday table without Juneteenth (5 U.S.C. 6103(a)), prints a written dispute deadline (1006.34(c)(3)) earlier than the validation period on every new placement. Under 15 U.S.C. 1692k(a), a court may add up to $1,000 in additional damages in an individual action, and up to the lesser of $500,000 or 1% of the collector's net worth for the other members of a class.
Contractual interest resumed after charge-off. The creditor stopped interest at charge-off, and the placement import restarts accrual at the contract rate. The validation notice itemization (1006.34(c)(2)(viii)) then shows interest that no agreement or law authorises, which 1006.22(b) prohibits collecting. Payments applied to that interest are refunded, with the percentage fee billed on them.
Electronic opt-out stored in one channel only. A consumer replies STOP to a payment link text, and the next campaign sends from a second number that reads a different suppression list. A collector must not use a medium the person asked it not to use (1006.14(h)(1)). For autodialed texts, 47 CFR 64.1200(a)(10) requires honouring a revocation made by any reasonable method within a reasonable time not to exceed ten business days, and each violation can carry $500 in statutory damages, up to three times that when wilful or knowing (47 U.S.C. 227(b)(3)).
Payment plan debit changed without notice, then returned. After a missed instalment, the plan adds the arrears to the next debit. When a preauthorised debit varies from the previous transfer under the same authorisation or from the preauthorised amount, the designated payee or the bank sends written notice of the amount and date at least 10 days before the scheduled transfer (12 CFR 1005.10(d)(1); see Regulation E testing). The consumer disputes the debit, it returns, and the creditor remittance and the platform's percentage were already booked on funds the agency never kept (Nacha return rules).

Licence flag and the evidence regulators and creditor clients ask for

Debt collection software carries a partial licence flag: licences attach to third-party collection agencies, debt buyers, non-exempt first-party creditors in California, and credit servicers of non-performing EU bank loans held by credit purchasers, and the California and Ontario definitions also reach sellers of collection letters or forms. Sources in this section were checked on 2026-09-16.

United States

Regulation F covers a debt collector: a person whose principal business purpose is collecting debts, or who regularly collects debts owed to another, including a creditor collecting its own debts under another name (1006.2(i)(1)). Collecting a debt the person originated, or obtained before default, is excluded (1006.2(i)(2)(vi)).

California requires a licence to engage in the business of debt collection (Financial Code 100001(a)). A debt collector is any person who, in the ordinary course of business, regularly collects consumer debt on its own behalf or for others, including anyone who composes and sells, or offers to compose and sell, forms, letters, and other collection media (100002(j)). Section 100001(b)(1) exempts depository institutions and California Financing Law licensees, among others. Evidence requested:

per-debt call logs with each attempt, each conversation, and each excluded call with its 1006.14(b)(3) reason;
validation notices with the itemization date, the itemization reconciled with the ledger, and the computed end date;
opt-out and TCPA revocation records with receipt time and suppression time per channel;
debtor state per account matched with the collector's licence coverage.

European Union

Member States apply the Credit Servicers Directive (Directive (EU) 2021/2167) from 30 December 2023 (Article 32(2)). Credit servicers acting for credit purchasers of non-performing credit agreements issued by EU credit institutions need authorisation in their home Member State (Articles 2(1) and 4(1)); servicing by credit institutions is excluded (Article 2(5)(a)(i)). Before the first debt collection after a transfer, the borrower receives the amounts due split into capital, interest, fees, and other permitted charges (Article 10(2)(g)). From 20 November 2026, CCD2 (Directive (EU) 2023/2225, Article 48(1)) requires creditors to exercise reasonable forbearance, where appropriate, before enforcement proceedings (Article 35(1)). Evidence requested:

transfer communications per account with the Article 10(2) content, sent before first collection;
the contact reference point in every later communication (Article 10(3));
forbearance offers recorded before enforcement for agreements in CCD2 scope.

Canada

Provinces regulate collection; this page cites Ontario. A collection agency carries on business only if registered (Collection and Debt Settlement Services Act, section 4(1)), and the term includes debt buyers and sellers of forms or letters represented to be a collection system or scheme (section 1(1)). Under R.R.O. 1990, Reg. 74, no demand or other contact with the debtor precedes the sixth day after the section 21(2) notice is sent (21(1)). Unless the person requests it, no telephone or personal call is made on Sundays outside 1 p.m. to 5 p.m., on other days between 9 p.m. and 7 a.m., or on listed holidays (22(6)). Contact on behalf of the same creditor is limited to three times in seven days (22(6)), excluding ordinary mail, consented or requested contact, and contact to locate the debtor (22(8)), from the first time the collector speaks with the person (22(9)). Evidence requested:

contact counts per creditor per seven-day window, with excluded contacts and reasons;
notice send dates against the first demand date per account;
registration status of each entity collecting through the platform.

Collection platform test scenarios

Call frequency per debt. Seven calls in seven days, a conversation on day three, consent given directly to the collector, unconnected calls, and one consumer with three debts.
Communication times. Address and area code in different time zones, with texts queued before 8:00 a.m. local time (1006.6(b)(1)(i)).
Validation notices. End dates across weekends and federal holidays, each itemization date in 1006.34(b)(3), and payment in full before the notice is due (1006.34(a)(2)).
Disputes. A written dispute before the end date stops collection of the disputed portion until verification or a judgment copy is sent (1006.34(c)(3)(i)).
Interest and fees. Post-charge-off accrual per creditor and settlement discounts, recalculated in an independent reference model by financial calculation testing with the day-count guide.
Payment plans. Missed instalment, re-plan, settlement in full, varying debit notices, and card payments that bring cardholder data into PCI DSS scope.
Returns and remittance. R01 and R10 returns after remittance, reversed percentage fees, and remittance statements per creditor, reconciled by ledger reconciliation testing.
Recalls and credit reporting. Paid, settled, or discharged debts blocked from sale and placement (1006.30(b)(1)), and furnishing held until a conversation, or until a letter or electronic message draws no undeliverability notice within a reasonable period (1006.30(a)).

Integrations and protocols to cover

Placement and recall files. Creditor CSV and fixed-width files with balances, charge-off dates, and itemization data.
Dialers and SMS gateways. Call detail records, dispositions, inbound IVR events, STOP keyword callbacks, and reassigned number database lookups.
Letters and email. Print-and-mail APIs with return mail events, and email bounce webhooks for the 1006.30(a) undeliverability check.
Payment channels. Card processor webhooks, Nacha WEB and TEL debit files, SEPA Direct Debit pain.008 files, and Canadian pre-authorized debits; bank transfers and payment rails testing delivers the return, reject, and recall test cases.
Credit reporting. Metro 2 furnishing files with status changes after disputes, settlements, and recalls.

Standards

Services

Guides

Sample deliverable

Sample, synthetic data

rule and threshold test matrixRule and threshold test matrix: transaction monitoring, disputes, collections, expense, market data, and claims rules

Rule and threshold test matrix: transaction monitoring, disputes, collections, expense, market data, and claims rules
Rule ID	Rule and reference	Test values below, at, and above the boundary	Expected outcome	Actual outcome	Result
TM-STR-01	Transaction monitoring structuring rule: open an alert when one customer makes two or more cash deposits on one business day, each below USD 10,000.00, that total more than USD 10,000.00. Built on 31 CFR 1010.313(b): multiple currency transactions shall be treated as a single transaction if the institution knows they are by or on behalf of any person and total more than $10,000 during any one business day	Below: two cash deposits totalling USD 9,999.99; at: two cash deposits totalling USD 10,000.00; above: two cash deposits totalling USD 10,000.01	The USD 9,999.99 and USD 10,000.00 totals open no structuring alert; the USD 10,000.01 total opens a structuring alert and a currency transaction report flag	The USD 9,999.99 and USD 10,000.00 totals opened no structuring alert; the USD 10,000.01 total opened a structuring alert and a currency transaction report flag	Passed, 3 of 3 test values, run 2026-09-14
SAN-SCORE-01	Sanctions name-match score threshold: open a screening alert and hold the payment when the name match score against a sanctions list entry is 85 or higher. Configured screening policy; no regulation sets the score	Below: match score 84; at: match score 85; above: match score 86, each for a synthetic customer name against a synthetic list entry	Match score 84 opens no alert; match scores 85 and 86 open a screening alert and hold the payment	Match scores 84 and 85 opened no alert and released the payment; match score 86 opened a screening alert and held the payment	Failed: the comparator uses greater than 85 instead of 85 or higher; defect DEF-2210, critical severity, blocks release
CBK-DL-13.1	Chargeback response deadline for Visa Dispute Condition 13.1 (Merchandise/Services Not Received): block submission of the response package after the network time limit. Visa Core Rules and Visa Product and Service Rules, 18 April 2026 edition, section 11.2.3, Table 11-2: the Dispute Response time limit is 30 calendar days from the Dispute Processing Date, with listed regional exceptions for some domestic transactions	Below: calendar day 29 after the Dispute Processing Date; at: calendar day 30; above: calendar day 31, all dates counted in UTC	Calendar days 29 and 30 accept the response package for submission; calendar day 31 blocks submission and marks the dispute case as expired	Calendar days 29 and 30 accepted the response package for submission; calendar day 31 blocked submission and marked the dispute case as expired	Passed, 3 of 3 test values, run 2026-09-14
COL-CALL-01	Regulation F call frequency: block a further collection call to a person about a particular debt after seven calls within seven consecutive days. 12 CFR 1006.14(b)(2)(i)(A) and (b)(2)(ii): subject to the exclusions in (b)(3), a debt collector is presumed to comply if it places a telephone call to a particular person about a particular debt not more than seven times within seven consecutive days, and is presumed to violate the rule if it places calls in excess of that frequency	Below: sixth call to one person about one debt within seven consecutive days; at: seventh call; above: eighth call	The sixth and seventh calls are placed; the eighth call is blocked by the dialer and rescheduled after the seven-consecutive-day period	The sixth and seventh calls were placed; the eighth call was blocked by the dialer and rescheduled after the seven-consecutive-day period	Passed, 3 of 3 test values, run 2026-09-14
EXP-RCPT-01	Expense policy receipt threshold: require a receipt before submission of a non-lodging expense of USD 75.00 or more. 26 CFR 1.274-5(c)(2)(iii)(A)(2): except as provided in (c)(2)(iii)(B), documentary evidence is required for any expenditure other than lodging of $75 or more, except that documentary evidence for transportation charges is not required if not readily available	Below: meal expense of USD 74.99; at: meal expense of USD 75.00; above: meal expense of USD 75.01	The USD 74.99 meal expense submits without a receipt; the USD 75.00 and USD 75.01 meal expenses are blocked until a receipt is attached	The USD 74.99 and USD 75.00 meal expenses submitted without a receipt; the USD 75.01 meal expense was blocked until a receipt was attached	Failed: the rule uses greater than USD 75.00 instead of USD 75.00 or more; defect DEF-2213, medium severity, fix scheduled for the next release and does not block this release
MD-ENT-01	Market data non-professional subscriber entitlement: grant the non-professional entitlement only to a natural person who is not registered or qualified in any capacity with the SEC, the CFTC, any state securities agency, or any securities exchange or association; not engaged as an investment adviser under Section 202(a)(11) of the Investment Advisers Act of 1940, whether or not registered; and not employed by an exempt bank or organization to perform functions that would require registration. Nasdaq Equity 7, Section 147(d)(4)(A), as quoted in SEC Release No. 34-94466 of 18 March 2022	Below: natural person with no registration and no adviser role; at: natural person acting as an unregistered investment adviser; above: subscriber account opened in a company name	Only the natural person with no registration and no adviser role receives the non-professional entitlement; the unregistered investment adviser and the company account receive the professional entitlement	The natural person with no registration and the unregistered investment adviser received the non-professional entitlement; the company account received the professional entitlement	Failed: the status attestation checks registration only, so subscriber counts reported to the exchange are wrong; defect DEF-2211, high severity, blocks release
CLM-AUTO-01	Claim auto-approval limit: approve a claim without adjuster review when the payable amount after the deductible is XTS 2,500.00 or less. Configured claims authority limit; no regulation sets the amount	Below: payable amount of XTS 2,499.99; at: payable amount of XTS 2,500.00; above: payable amount of XTS 2,500.01	The XTS 2,499.99 and XTS 2,500.00 claims are approved automatically and queued for payment; the XTS 2,500.01 claim goes to adjuster review with no payment queued	The XTS 2,499.99 and XTS 2,500.00 claims were approved automatically and queued for payment; the XTS 2,500.01 claim went to adjuster review with no payment queued	Passed, 3 of 3 test values, run 2026-09-14

Rule IDs, defect IDs, customers, claims, and run dates are synthetic, USD appears only where a regulation states the threshold in USD while configured limits use XTS (the ISO 4217 test code), and rule references were checked on 2026-09-16 against eCFR, the Visa Core Rules and Visa Product and Service Rules of 18 April 2026, and SEC Release No. 34-94466.

Questions

What is debt collection software?

Debt collection software is the system of record that collection agencies, debt buyers, and creditor recovery teams use to load placed accounts, schedule calls, letters, emails, and texts, take payments and payment plans, log every communication, and remit collected funds to creditors. Debt collection software also applies contact limits, validation notice dates, dispute holds, and opt-outs.

What is Regulation F?

Regulation F (12 CFR part 1006) is the Consumer Financial Protection Bureau rule that implements the Fair Debt Collection Practices Act. Regulation F took effect on 30 November 2021 and sets rules for debt collectors on call frequency, communication times, emails and text messages, electronic opt-outs, validation notices, credit reporting, and record retention.

What is the 7-in-7 rule for debt collection?

The 7-in-7 rule in Regulation F (12 CFR 1006.14(b)) presumes that a debt collector complies with the ban on repeated or continuous calls when it calls a person about a particular debt no more than seven times within seven consecutive days and not within seven days after a telephone conversation about that debt. Calls above either limit are presumed to violate the rule.

Scope your collection platform testing

Send your channels, payment methods, and markets, and we return a test scope covering contact limits, notices, payment plans, and remittance with the evidence each regime asks for.

Scope your testing