According to the latest Equifax (NYSE:EFX) National Consumer Credit Trends Report, the total number of open retail-issued credit cards is greater than 183 million, the most since September of 2009.
Both the credit card delinquency rate (the ratio of borrowers 90 days or more delinquent on their general purpose credit cards) and the average credit card debt per borrower dropped on a yearly basis during Q3 2013.
The percentage of American consumers with at least one account in the third party debt collection system fell sharply in the third quarter of 2013, according to data released Thursday by the Federal Reserve Bank of New York. But the average balance of accounts in collection increased sharply.
A common theme insideARM has been tracking for the past few years is the shrinking pipeline of consumer debt for the accounts receivable management industry. It’s been easy to point to the massive decline in credit card debt, once the reliable lifeblood of debt collectors, and warn of fewer accounts coming down the pipe from that sector.
YGC Solutions has updated its industry-recognized standard and will make it available in the public domain. Creditors, debt buyers, subrogation professionals, attorneys, and collections agencies will be better able to be responsive to the rapidly changing compliance landscape.
Consumer protection attorneys are testing the argument that debt buyers who acquire charged-off consumer debt, and then “retroactively” charge interest on it, are in violation of the Fair Debt Collection Practices Act. This has sparked class action lawsuits across the country, particularly in Illinois, Kentucky and Ohio. So what should debt collectors do about this [...]
According to Equifax’s (NYSE:EFX) latest National Consumer Credit Trends Report, the total balance of bank credit cards increased slightly over the year ending July 2013 (from $533.3 to $536.5 billion), realizing the first year-over-year increase in 5 years.
Despite a drop-off in severely delinquent credit, the percentage of Americans with at least one credit report trade line from third party debt collection agencies stayed near an all-time high in the second quarter of 2013, according to the Quarterly Report on Household Debt and Credit from the Federal Reserve Bank of New York.
A recent Federal regulator’s statement of stringent “best practices” for all debt sales by banks is the likely cause for the purported pullback in account sales by two major credit card issuers. These new best practices for debt sales promise to radically redefine debt buying forever.
Data through June 2013, released today by S&P Dow Jones Indices and Experian for the S&P/Experian Consumer Credit Default Indices, showed decreases in national consumer credit default rates during the month. Both national composite and the first mortgage default rates hit new post-recession lows.