The U.S. insurance market generated more than $2.2 billion in total revenue in 2014. This market is intriguing in the way that bad debt is not as critical to the success of ARM operations because there is such a high volume of billing, coding, claims processing and other non-bad debt collection services. It provides ARM companies diversification in industries served in addition to diversification in the type of collection and other outsourced services.
Since yesterday we’ve done additional analysis of the data to look at how debt collection companies are responding. Of the 2,246 debt collection complaints with consumer narratives, 1,310 of them included one of the nine newly proscribed public response categories. Almost 30% of those were “we choose not to respond.”
The CFPB has gone live with an enhanced public-facing consumer complaint database that includes over 7,700 consumer accounts of problems they are facing with financial companies. Of those related to debt collection, 30% are assigned to an “other” category, and 25% have no assigned sub-category.
Among other things, the report indicates that the non-public supervisory actions and self-reported violations at banks and nonbanks during the period in question resulted in $11.6 million in remediation to more than 80,000 consumers.
Today Rohit Chopra, the Consumer Financial Protection Bureau (CFPB) Student Loan Ombudsman – who also just announced he is stepping down after next week - released a report finding high rates of consumers are being rejected for co-signer release on their private student loans, based on its review of industry practices. The Bureau uncovered problematic industry practices that may […]
Yesterday, the CFPB announced an enforcement action against a medical debt collection company for mishandling consumer credit reporting disputes and preventing consumers from exercising important debt collection rights. The company is ordered to provide over $5.4 million in relief to harmed consumers, and pay a $500,000 penalty. At the core is a lack of adequate policies and procedures.
ARM industry experts were not optimistic regarding the proposed Declaratory Ruling. As it turns out, based upon the dialogue at the hearing, industry concern and pessimistic outlook was justified.
When discussing debt collection, word choices in the report were interesting. The Bureau noted that “Many companies in the industry play by the rules.” Not “Most” companies play by the rules. Clearly the ARM industry has not yet convinced the CFPB that most companies do, in fact, play by the rules.
New York, NY – KM² Solutions is proud to announce the expansion of two BPO contact centers located in the Caribbean and in Central America. The expansion of these facilities is directly tied to the surge of new business from both existing clients and new client starts. Furthermore, the growth signifies KM² leadership within the region […]
Higher education remains the primary expected next step for graduating high school seniors. And while some have argued that tuition rates are slowing, tuition debt itself continues to run laps around other prices. Can a photographer take the sting out of the shame of debt?