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.
In part two of our in-depth look at the new regulatory environment in ARM, we look at how banks have been regulated in the past and explore the key points of focus for the CFPB.
In the latest exchange in an increasing arms race among public U.S. debt buyers, Encore Capital Group said it acquired a controlling stake in a debt purchaser in Latin America and a UK-based firm that handles bankruptcies in that country.
The CFPB Monday announced that a mortgage lender was assessed a civil monetary penalty of $83,000, arising from illegally splitting real estate settlement fees. The news, though, is that the company self-reported the violation.
Market changes since the FDCPA’s passage in 1977 and the postcrisis shift toward regulation have opened the door to significantly enhanced consumer protections. The CFPB’s rulemaking has the potential to alter dynamics in every corner of the industry, from reducing recovery rates and limiting post-charge-off sale options and pricing to driving further consolidation by firms with sophisticated processes, systems, and controls.
JP Morgan Chase’s annual 10-K report to the SEC reveals some critical details about the mega-bank’s debt collection practices. In 2013, JP Morgan Chase recovered $593 million of charged-off credit card debts, continuing a three-year trend of anemic debt recovery. In 2010, the country’s biggest bank recovered $1.37 billion from unpaid credit card bills it had […]
According to a variety of sources, Capital One is preparing to launch a team of suited collectors to visit people’s homes and offices in pursuit of missed credit card payments. The LA Times put it this way: “Credit card issuer Capital One isn’t shy about getting into customers’ faces. The company recently sent a contract update to cardholders that makes clear it can drop by any time it pleases.” Only this is not a recent update, and the credit card company claims its only using this clause in repossession efforts.
Following a week of staring deep into TDX Group’s crystal ball, we can now provide our view on the key themes for 2014.
Richard Cordray, Director of the CFPB, came up a little short in his return to TV quiz show Jeopardy!, which aired last night. Cordray was previously an undefeated five-time champion on the show in 1987. The day before, a House Committee chairman sent a letter to his caucus preparing them for floor action on a bill that would restructure the CFPB.
Some in the debt collection industry view the impending rulemaking from the CFPB as an exercise in creating more obstacles for their business. But ARM industry leaders recognize the opportunity presented in responses to the Bureau’s advance notice of proposed rulemaking (ANPR). For once, collectors have an actual say in the direction of regulation.