The Federal Trade Commission and Florida’s Attorney General have joined forces to cease the operations of an “Orlando-based operation that has been bombarding consumers since 2011 with massive robocall campaigns designed to trick them into paying up-front for worthless credit card interest rate reduction programs.” And no, it’s not Disney.
Sentry Credit is proud to announce the expansion of their Business Development division with the addition of Bill Perrella and John Burke. Combined, the two Sentry soldiers have over 30 years with the company making them the ideal choices to lead Sentry into new collection verticals. Mr. Perrella joined the team in 1998 and has […]
Designing and implementing strong internal controls are important to the ARM industry but how about physical controls? Baker Tilly’s latest blog looks at the ins and outs of security and physical controls.
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.