The charging of convenience fees has become a huge challenge for the ARM industry. The CFPB and the FTC have repeatedly censured companies and levied fines against the industry for the assessment of these fees using several different statutes. What is your agency doing about convenience fees?
The CFPB announced this afternoon an enforcement action against an indirect auto finance company and its auto title lending subsidiary for pressuring borrowers using illegal debt collection tactics. The following is the full text of the CFPB press release on the matter. If these allegations are true, this is your textbook example of “bad apple.”
The U.S. Court of Appeals for the Seventh Circuit recently affirmed summary judgment in favor of a debt collector, holding among other things that the “FDCPA is not an enforcement mechanism for matters governed elsewhere by state and federal law.”
George Mason University Foundation Professor of Law and Senior Scholar of the Mercatus Center Todd J. Zywicki has published a Working Paper entitled “The Law and Economics of Consumer Debt Collection and Its Regulation.” The 69-page paper concludes that new government restrictions on debt collection may very well burden consumers. Zywicki starts with the premise […]
The FTC held its second of three debt collection dialogues in Dallas, Texas yesterday. Kelly Knepper Stephens, General Counsel & Chief Compliance Officer at Stoneleigh Recovery Associates, was at the session and offers her take-aways as a member of the industry. Top of the list? Don’t wait for CFPB rulemaking; review your practices now.
SACRAMENTO, Calif. – A new study conducted by Professor Todd Zywicki of the Mercatus Center at George Mason University indicated that careful evaluation of the current regulatory environment was necessary to ensure that the debt collection and debt buying industries continued to fulfill their critical role in the economy. The study also found as the […]
CBE Companies announced today that Michael L. Frost, CBE Companies Chief Compliance, Sales Officer and General Counsel, will serve on a panel discussing credit and collection issues. The event, The Federal Trade Commission’s second of three planned Debt Collection Dialogues, will be held tomorrow in Dallas, Texas, and will include members of the debt collection community in addition […]
Encore Capital Group announced today that it is entering into an agreement to buy 50.25 percent of Baycorp, a leading debt resolution specialist in Australia and New Zealand. The current owners, Oceania Capital Partners and SAS Trustee Corporation, have reduced their ownership levels but will remain as shareholders and directors of the company. As the […]
Earlier this week I was watching the Today Show (no comments, please), which included a segment with Suze Orman, the personal finance guru. In response to a question from a young woman in the crowd, she advised against the income-based repayment program. I thought that was curious.
We’ve all heard of car insurance, home insurance, renter’s insurance, health and dental insurance, business insurance, malpractice insurance and yes, even pet insurance! But how about data insurance? Our customers have stated that 15-20 percent of a collection agency’s bottom-line goes toward the cost of compliance. Here’s something new to think about: If you currently […]