Patrick is the senior editor of insideARM.com. Patrick edits the ARM insider and all content appearing on insideARM. His work has appeared in numerous industry trade publications. Since 2002, he has covered or broken nearly every major news story impacting the accounts receivable management industry for insideARM.com. Previously, he was at finance research and consulting firm Corporate Executive Board after initially working in publishing out of college. Patrick holds a Bachelor of Business Administration degree from the University of Georgia, the flagship school of his home state. He currently lives in Silver Spring, Maryland with his wife and two daughters.
Earlier this week insideARM CEO and publisher Stephanie Eidelman moderated a panel discussion at SourceMedia’s National Collections & Operational Risk conference in Miami.
The Consumer Financial Protection Bureau (CFPB) Tuesday released a research report on payday lending and presented some of the findings at a field hearing in Nashville. CFPB Director Richard Cordray noted at the hearing that his group is in the “late stages” of formulating new rules for short-term loans.
Debt collection complaints published by the CFPB declined nearly 20 percent in February compared to January, according to an analysis by WebRecon LLC. But lawsuits claiming violations of the FDCPA bucked a trend in the month and increased more than 10 percent.
The CFPB Thursday presented its annual report to Congress on the administration of the FDCPA in 2013. While 2013 was the most active year of debt collection regulation ever, the report focuses heavily on an analysis of debt collection complaints the agency has received since July 2013.
CFPB Deputy Director Steve Antonakes yesterday discussed debt collection rulemaking noting that his agency is particularly concerned that “the accuracy of account information degrades as it is passed on from the original creditor to debt collection firms or debt buyers.”
At the request of the Federal Trade Commission, a U.S. district court halted a debt collection operation that the agency charged with violating the Federal Trade Commission Act and the Fair Debt Collection Practices Act (FDCPA) by misrepresenting that they were with the government, falsely accusing consumers of committing check fraud, and then threatening consumers with arrest.
A report issued this week by the Government Accountability Office (GAO) said that a major computer system upgrade with the Department of Education’s debt management division was so poorly managed, it led to months-long delays in loan rehabilitations. The report also showed that ED is not effectively monitoring its private debt collection agencies’ performance.
A new financial watchdog is set to open for business in the United Kingdom on April 1. The agency announced today that a review of the debt collection practices of payday lenders will begin on day one. The group has rulemaking and enforcement powers similar to the CFPB in the U.S. and will be very active in the years to come.
Since July 2013, the CFPB has been the main federal agency tasked with accepting, compiling, and resolving consumer complaints about debt collection. But the FTC still collects those complaints through a variety of other sources. According to FTC data on consumer complaints, the share of debt collection complaints originating in a particular smartphone app has risen dramatically.
The Consumer Financial Protection Bureau Friday issued a public notice and request for comment over a plan to mail surveys to consumers “to learn about their experiences interacting with the debt collection industry.” The CFPB plans to use the survey data to inform its rulemaking process for debt collection, but the timeframe of the survey may push back any new rules.