Fourteen months after the settlement was reported, the FTC announced that it was mailing almost 95,000 checks totaling approximately $4 million to consumers who lost money to the debt collection operation.
We’re coming up on two weeks since the FTC held its hearing on a proposed Declaratory Ruling and Order on the TCPA. You may remember this. The FCC, it seems, has momentarily forgotten. insideARM looks at some things you can do while waiting for the FCC to finally publish its ruling.
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.
Editor’s note: While this may seem like a sports story, it’s really an excellent lesson in data security for any firm. And yet it’s accessible because it’s, well, a sports story …with some intrigue.
insideARM.com and The iA Institute formally announced today the ARM industry’s first ever conference focusing on First Party Collections and First Party Outsourcing. The inaugural event will be held on October 13-14, 2015 at the Oakridge Hotel and Conference Center just outside Minneapolis, MN.
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.