Credit Card Receivables Feed Link

Credit Card Receivables

A credit card receivable is money owed to a bank or issuer on the outstanding balance in a credit card account. Because the borrower is contractually obligated to pay the balance, the creditor expects this amount to be repaid. If a borrower does not repay the balance, it is often charged off as a loss. Since credit card usage is so widespread, and account balances can soar quite high, credit card receivables form the backbone of many financial services functions, such as asset-backed securities, debt collection, and debt buying.

For more information on credit cards and the role they play in the ARM industry, please see our special content section, The Credit Card Issue.

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BofA Wins Dramatic Attorney Fee Reduction in TCPA/Debt Collection Call Class Action

Last fall, Bank of America entered into a $32 million settlement to resolve a TCPA lawsuit over debt collection calls the bank made within its credit card and mortgage units. It has been called the largest TCPA settlement ever. Late last month, the judge in the case drastically lowered the amount of money the plaintiffs’ attorneys will see for their work in the final settlement approval.

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CFPB Warns Credit Card Companies on Marketing Interest Rate Promotions

The Consumer Financial Protection Bureau (CFPB) Wednesday warned credit card companies against deceptively marketing interest-rate promotions. The Bureau is concerned that some companies are luring in consumers with offers of zero or lower interest for a specific purchase or balances transferred from another credit card, and then hitting them with surprise interest charges.

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Capital One and Three ARM Firms Agree to $75 million TCPA Settlement

In what is being touted as the largest TCPA settlement ever, Capital One and three collection agencies have agreed to pay $75.5 million into a settlement fund to end litigation in a combined class action. The agreement admits no wrongdoing on the part of the companies for allegedly using autodialers and/or pre-recorded messages in calls to cell phones without the consumers’ express consent.