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A credit grantor is any individual or business that extends credit to customers. The credit can be for other businesses or consumers and can come in many forms, such as closed-end loans (like auto loans, mortgages, and student loans), revolving loans (like credit cards or certain home equity loans), or a hybrid of the two. Some credit is backed by property or assets.
In the U.S., the primary credit grantors are large commercial banks and credit unions. But credit is also extended by small businesses, governments, and other organizations.
Moderator: Thomas Kane, FTC Panelists: Manoj Hastak, American University Loraine Lyons, FMA Alliance David Pauken, Convoke Systems Ira Rheingold, National Association of Consumer Advocates Larry Tewell, Wells Fargo Contigency collectors? Thomas Kane: What do contingency collectors typically receive? Loraine Lyons: Depends on the type of debt and the sophistication of the creditor. Name of consumer [...]
The U.S. Office of the Comptroller of the Currency (OCC) is expanding an investigation into the documentation used by credit card issuers to verify account accuracy before filing debt collection lawsuits or selling the accounts to debt buyers.
The Washington Post, citing four unnamed sources familiar with the probe, reported on the expansion Wednesday. The Post’s sources say the full scope of the investigation is still unclear, but that it is definitely widening.
For the second straight quarter, the percentage of Americans with at least one account in the third party debt collection system hit an all-time high in the first three months of 2013. Close to 15 percent of consumers have an account being worked by debt collectors.
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 CFPB has three advisory boards that steer its thinking on financial regulation: one that is comprised of consumer advocates (naturally) and two made up of small banking interests. There is no board for large financial institutions.
There is also no advisory board for other companies, like debt collection agencies. An article in the Washington Post partially explains why. But still: how can the industry gain credibility and influence when other similarly sized industries seem better positioned?
Consumer Financial Protection Bureau (CFPB) Director Richard Cordray was on Capitol Hill Monday testifying before the Senate Committee on Banking, Housing, and Urban Affairs. The hearing was to discuss the CFPB’s semi-annual oversight report to Congress. While debt collection was noted in Cordray’s opening remarks, the majority of time was spent following up on a recent news report about the CFPB’s Big Data collection efforts.
Raj Date, former Deputy Director of the Consumer Financial Protection Bureau, has started a consulting firm that will serve bank clients. The Washington, DC-based group will be focused on consumer finance issues.
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.
In an effort to effectively end the high interest rates charged to consumers who take out short-term – or payday – loans, a group of U.S. Senate Democrats Tuesday introduced a bill that would cap annual interest rates at 36 percent for all consumer credit transactions.
The Consumer Financial Protection Bureau (CFPB) has been collecting consumer complaints on credit card companies since December 2011. While most of the complaints deal with billing and account matters, about 1,600 specifically site debt collection issues. The sample provides a bit of insight into what the ARM industry will be dealing with once the Bureau begins accepting third party debt collection complaints.