A jurist praised by The New York Times for his administration of credit card debt collection cases was recently the subject of a harsh rebuke from a New York appellate court for the same judicial practices.
The percentage of American consumers with at least one account in the third party debt collection system increased slightly in the fourth quarter of 2013 while the average balance of accounts in collection jumped for the second straight quarter, according to data released this week by the Federal Reserve Bank of New York (FRBNY).
As consumers continue to seek and receive more credit, the latest quarterly survey of U.S. and Canadian bank risk professionals found expectations for delinquencies on auto loans hit their highest level since Q4 2012, and expectations for delinquencies on credit cards reached their highest level in two years.
Consumer delinquencies declined significantly in last year’s third quarter as the economy improved and consumers better managed their finances, according to results from the American Bankers Association’s Consumer Credit Delinquency Bulletin.
The California Superior Court of Los Angeles rejected a bid Tuesday by mega-bank JP Morgan Chase to dismiss a lawsuit brought in May 2013 by California Attorney General Kamala Harris alleging widespread debt collection abuses in the bank’s credit card unit.
In short, student loan debt is now the largest single consumer debt class outside of mortgages. Larger than credit cards, larger than auto loans, outstanding balances on loans to pay for college dwarf everything else.
Mississippi Attorney General Jim Hood sued JP Morgan Chase for allegedly violating consumer protection laws when going after credit card debt. The suit claims that Chase used “robo-signing” and other harmful practices for at least six years to pursue consumers for debts they did not owe, already paid or had excused in bankruptcy.
Average credit lines continue to decline across all risk categories, monthly purchase volumes rebounded and cardholders are paying less interest as a percent of outstanding credit card credit, according to the latest edition of the American Bankers Association’s Credit Card Market Monitor.
Richard Cordray, Director of the CFPB is in Dallas today to speak at a field hearing on arbitration clauses in credit contracts. The Bureau also released a report Thursday that showed arbitration clauses are commonly used by large credit card issuers and that roughly 9 out of 10 clauses allow banks to prevent consumers from participating in class actions.
U.S. Federal Reserve said Friday that consumer credit outstanding increased at an annual rate of 7.1 percent in October, including a 6.1 percent increase in credit card spending, the largest increase since May.