We can expect to hear more rhetoric from both sides in the ramp-up to the 2016 presidential elections. Democrats will want to focus the conversation on consumer protections — from reforms in debt collection to reforms in lending (specifically, yesterday’s story about payday lending). Republicans will focus largely on what they see as a regulatory body with no supervision, and will likely frame the conversation in terms of a need for smaller government.
The proposals under consideration would include two ways that lenders could extend short-term loans without causing borrowers to become trapped in debt. Lenders could either prevent debt traps at the outset of each loan, or they could protect against debt traps throughout the lending process. Specifically, all lenders making covered short-term loans would have to adhere to one of several requirements.
Since it’s clear that change is really the only dependable constant any ARM company can rely on, it makes sense to develop solid solutions to manage those changes. What, specifically, is your company doing to manage change, rather than being managed by change?
Many creditors’ rights attorneys are suspicious of a process where they perceive the rules of the hearing as subjective and inconsistent and where the appearance of bias is acceptable. So what can be done? If an amicable resolution is not reached, here are some strategies for consideration.
There has been a lot of litigation relating to envelopes recently, but section 1692f(8) of the FDCPA, which regulates collection envelopes, is not new. It has been a source of frustration for collectors for decades. Fortunately, some courts have recognized that a strict application of section 1692f(8) may lead to absurd results, and have held that “benign language” on an envelope does not violate the FDCPA. Unfortunately, the word “benign” can be VERY slippery.
TekCollect, the industry’s leading accounts receivable management company, is undergoing its SSAE16 SOC 1 – Type II Audit this year. The SSAE16 SOC 1 – Type II Audit is the authoritative guideline to ensure service organizations demonstrate maximum controls and safeguards and compliance when processing customer data and financials. It is an important means for […]
A federal judge in Indiana last week dismissed part of an enforcement action brought by the Consumer Financial Protection Bureau (CFPB) against a for-profit college under the Truth in Lending Act (TILA) because TILA actions are subject to a one-year statute of limitations. A collection law firm currently embroiled in a nasty legal fight with the CFPB jumped on the opportunity to note that the FDCPA carries similar restrictions.
The Consumer Financial Protection Bureau (CFPB) announced today that it has finalized its publication rules for consumer narratives in complaints. The move will allow the CFPB to publish the language provided by consumers explaining why they are logging the complaint. The final policy also includes a significant change to the way companies can respond to consumer narratives.
The CFPB announced Tuesday it is seeking public comment on how the credit card market is functioning and the impact of the Bureau’s credit card protections on consumers and issuers. This inquiry will focus on issues including credit card terms, the use of consumer disclosures, credit card debt collection practices, and rewards programs.
The West Virginia House of Delegates passed a bill over the weekend that makes some rather specific changes to the state’s Consumer Credit and Protection Act relating to debt collection, including a codification of abusive call volume. The bill previously passed the state’s Senate and will now be sent to the Governor.