Debt Buying Feed Link

Debt Buying

A debt buyer is a firm that purchases debt from another company, usually a creditor or bank, at a deeply discounted rate. The debt purchaser then attempts to collect the debt through its own operations or through the use of a third-party debt collection agency. Some debt buyers may sell all or part of the debt to another party at a profit. Most debt buyers are small and privately held, though there is a handful of publicly traded debt buying companies.

Recent changes in law and legal rulings have seen the debt buying industry regulated like collection agencies, or servicers of debt, rather than creditors, or owners of the debt. Debt buyers must adhere to the FDCPA.

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CFPB Seeks Input on Credit Card Market, Including Collection and Debt Sales Practices

The CFPB announced Tuesday it is seeking public comment on how the credit card market is functioning and the impact of the Bureau’s credit card protections on consumers and issuers. This inquiry will focus on issues including credit card terms, the use of consumer disclosures, credit card debt collection practices, and rewards programs.

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CFPB’s Winter Supervisory Report Reveals New Issues in Debt Collector Examinations

The Consumer Financial Protection Bureau (CFPB) Wednesday released its Supervisory Highlights Report for Winter 2015. The report details findings from supervisory examinations conducted by the Bureau. Along with usual findings of FDCPA and UDAAP violations, the report reveals some other issues in debt collection examinations that have not been highlighted previously.

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Debt Buying Giants Reach New Heights, But Disclose CFPB Investigations and Possible Impacts

Publicly traded debt buyers Encore Capital Group (NASDAQ: ECPG) and PRA Group (NASDAQ: PRAA) recently announced financial results for the full year 2014 marked by record cash collections and revenues driven by acquisitions and global growth. But both also made special note of specific, ongoing CFPB investigations and the potential financial impact of resolving the actions.