The CFPB announced this afternoon an enforcement action against an indirect auto finance company and its auto title lending subsidiary for pressuring borrowers using illegal debt collection tactics. The following is the full text of the CFPB press release on the matter. If these allegations are true, this is your textbook example of “bad apple.”
Consumer Financial Protection Bureau Director Richard Cordray was the sole witness at the House Committee on Financial Services Hearing yesterday, a hearing occasioned by the CFPB’s Semi-Annual Report. Throughout the long (nearly 4-hour) and often contentious hearing, Committee Members pushed Cordray on his agency’s rulemaking authority, the efficacy of statistical methods behind enforcement, the agency’s […]
For the past 15 years lawyers have artfully drafted agreements that address such things as whether the accounts being worked are “in default” and whether the employees of an agency working the business are “de facto” employees of the creditor. Often the contract would require that those same employees be segregated from the rest of the company and/or working in isolated space. Numerous other provisions in First Party service agreements all have their genesis in deMayo. Times have changed.
insideARM.com and The iA Institute formally announced today the ARM industry’s first ever conference focusing on First Party Collections and First Party Outsourcing. The inaugural event will be held on October 13-14, 2015 at the Oakridge Hotel and Conference Center just outside Minneapolis, MN.
Yesterday the Consumer Financial Protection Bureau (CFPB) announced it was taking action against a lender that focused on making automobile loans to servicemembers. The CFPB alleges that Security National Automotive Acceptance Company, LLC, an Ohio based auto finance company, regularly engaged in prohibited, aggressive debt collection tactics against servicemembers and used a combination of illegal […]
Yesterday the Consumer Financial Protection Bureau (CFPB) published a rule that will allow the agency to supervise larger nonbank auto finance companies for the first time. The CFPB already supervises auto financing at the largest banks and credit unions. Yesterday’s rule extends CFPB supervision to any nonbank auto finance company that makes, acquires, or refinances 10,000 or more loans or leases in a year.
After the recession, ARM firms who adapted their business practices are capitalizing on new opportunities as the economy improves.
Delinquencies continued to decline in last year’s third quarter, falling in seven out of 11 categories as the economy improved and consumers responsibly managed their finances, according to results from the American Bankers Association’s Consumer Credit Delinquency Bulletin.
A recent credit report study from TransUnion found that the composition of loans that people typically carry has materially changed for both the youngest and oldest segments of the population during the last decade. Not only did economic forces prompt change, but general demographic shifts have changed the composition of outstanding credit among different age groups in the U.S.
Think you’ve seen it all in the ARM industry? Here’s a new one: The Securities and Exchange Commission last week launched legal action against a hedge fund and its owners for defrauding investment customers. Investors allegedly lost millions because the fund was managed by a former debt collector who had no investment experience.