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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.
The national credit card delinquency rate (the ratio of borrowers 90 or more days past due) decreased to 0.69% in Q1 2013 from 0.73% in Q1 2012. The delinquency rate experienced a sharp 18.8% seasonal decline from the end of 2012, when it stood at 0.85%.
California Attorney General Kamala Harris Thursday announced that her office has filed an enforcement action against JPMorgan Chase & Co. alleging that the bank engaged in fraudulent and unlawful debt-collection practices against tens of thousands of Californians.
The suit alleges that Chase engaged in widespread robo-signing of court documents in debt collection cases, among other practices, to commit abuses against approximately 100,000 California credit card borrowers over at least a three-year period.
The use of the court system by debt buyers for years has been a focus of both reporters and regulators. The well-chronicled practice of “robo-signing” affidavits to attest to the validity of debt now has a new entry. But the piece goes further, calling into question the relationships between debt buyers and issuers.
National Enterprise Systems (NES) today announced that it has earned an A+ rating with the Better Business Bureau (BBB), the highest rating awarded by the Bureau. Upon learning of the company’s top BBB rating, Ernie Pollak, president of NES, said, “I am very excited to achieve an A+ rating. It has taken a lot of hard work and a tremendous amount of oversight in compliance and training. Investments in people and systems to support compliance with state and federal regulations are both costly and time consuming, but they are also the right business choices because they allow NES to best serve our clients and consumers.”
At a scheduled field hearing in Des Moines, Iowa Thursday, Consumer Financial Protection Bureau (CFPB) Director Richard Cordray announced the expansion of its Consumer Complaint Database and the release to the public of roughly all complaint data it has collected through its Consumer Response complaint system.
Over recent months, consumers have been piling on the debt at the highest rate since the start of the Great Recession more than 4 years ago. What does this mean for ARM professionals in search of increased placement volumes and improved liquidation results?
The percentage of Americans with at least one account in third party collections rose to an all-time high in the fourth quarter of 2012, according to the Federal Reserve Bank of New York. The average account balance of those in collection decreased.
In its Quarterly Report on Household Debt and Credit for the fourth quarter of 2012, the FRBNY noted that 14.6 percent of American consumers had an account in the third party debt collection system, up from 14 percent in the third quarter.
The U.S. Federal Reserve said Tuesday that charge-offs of credit card accounts among its member banks increased more than five percent in the fourth quarter of 2012, the first time aggregate charge-off rate for cards has grown in a year-and-a-half. Credit card delinquencies, meanwhile, declined in the quarter to an all-time low.
National Enterprise Systems, Inc., a full-service debt collection agency licensed in all fifty states and offering a full range of accounts receivable management services to credit grantors nationwide, has recently launched a newly redesigned website to better serve its clients and customers in the accounts receivable management industry.
National Enterprise Systems was established in 1987 by Ernest R. Pollak, as a full-service debt collection agency. In January 1999, Mr. Pollak, a 38 year veteran of the collection industry, became President of NES. Mr. Pollak’s sincere, hands-on approach to the needs of clients and keen awareness of industry trends has resulted in the continual growth and development of NES, its management team, and its employees.
Consumer credit outstanding in the U.S. increased at an annual rate of seven percent in November, mostly on the strength of auto and student lending, according to data released late Tuesday by the Federal Reserve.