Welcome to the Research Assistant Weekly Newsletter - a subscriber-only resource for insight into emerging compliance challenges, details on peer calls, and links to new Research Assistant reports, documents, tools, and more.

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Last week the CFPB ordered Federal Supervision for Installment Lender World Acceptance which led to a thoughtful discussion about the FinTech space specifically and the importance of “knowing your client”. 

The FinTech space has changed traditional brick and mortar banking  and continues to evolve quickly so what can we do as debt collectors to assess our risks with these types of clients? 

Our peer group came up with the following due diligence debt collectors should perform to better understand the risks of your clients:

• What types of loans do they provide? 

• Installment 

• Credit card 

• Personal loans 

• Business loans 

• Buy now, pay later 

• Retail

• Underwriting practices

• What information is being used to determine a consumer’s credit worthiness?

• What is their average default rate?

• Complaint data 

• What are the common complaints against the creditor? 

• What type of data and documents are available to validate debt? 

Whether it is with this new Fintech space or any other asset class it’s important that you perform appropriate due diligence procedures to ensure a client is not going to expose your organization to additional risks.

Documents and Crowdsourced Materials:

• RA Member Questions: CFPB vs. Fintechs, Options for the Disabled, Medical Debt with Minors, and the Minnesota Debt Collection Bill

Top Reads:

• FTC Provides its 2023 ECOA Activities to CFPB

• CFPB Revises its Supervisory Appeals Process

• Restrictive Collection Bill Pending in Minnesota

Upcoming Webinars/ Other Announcements:

• Research Assistant Webinar Series Kicks off on March 27th at 2:00 ET! Register here: RA Compliance Corner: How to Effectively Communicate with Executive Leadership

• Please make a note of our updated email addresses: 

• Sara Woggerman, sara_consultant@roundtables.us 

• Missy Meggison, mmeggison@roundtables.us  

• Have topics you want to discuss during the peer call? Please send them to: Sara_Consultant@roundtables.us by Thursday to ensure it makes it on our agenda!