= Subscriber content; or subscribe now to access all American Banker content.
Player Template for http://www.americanbanker.com
Is Debt Collection a Dying Business?
March 3, 2014

Federal regulators are shining an increasingly harsh light on the debt collections practices of banks and third-party agencies, forcing many to drastically alter the ways in which they interact with delinquent consumers. American Banker outlines the changes underway and how they may trickle down to collections efforts around the nation.

Comments (2)
It is hard to predict what will happen to the Debt Collections Business, because there are too many parties involved in the fate of the business. What is clear is that "business as usual" won't keep it going. Banks are becoming more conservative and restrictive, which should reduce the pipeline of bad debt flowing through the system. The Federal Government is not showing any signs of backing off from their position to protect the consumer, whether for political or social motives. The consumer is bombarded with information regarding their rights and worse yet, ways in which they can avoid having to pay their debts. So all that said, all indications point to at least a significant reduction in the amount of debt being serviced and the number of companies to service the debt. I believe, and this is just a personal opinion, the time has come to change the model and reinvent the business model. How can Debt Servicing Companies play the role of collections and a source of debt relief? How can we change the model that is perceived as predatory collection practices, to debt resolution through counselling and solutions that truly fit within the capacity of the Debtor to pay what they can and find closure? Put another way, how can the Business model be structured so the debtor sees the industry as a solution and not a burden? If the business is to survive, the model has to change by becoming more consumer sensitive and driven less by bottom line profits. This will require the lending institutions to rethink their expectations of the debt servicer, and begin to work collectively to become a solution to the problem and not the problem.
Posted by ramosjoe | Tuesday, March 04 2014 at 6:48PM ET
Among the watches that can be admired by replica watches abounding are replica Swiss watches.They are crafted of accomplished actual and mirrored exact of the aboriginal ones which will leave even the experts puzzled.That is why the avant-garde man brand to adorn his wrist with the beautiful Replica alarm that gives him the consequence of composure and elegance.Although computers and rolex datejust replica corpuscle phones are about us,they cannot be a acting for watches.Whenever you are affianced in official affairs or accessory some seminars,you are asked to accumulate your corpuscle phones switched off.Replica handbags are acceptable to use,acceptable in superior and affordable.The amount of chanel outlet a replica backpack is beneath than bisected the amount of the absolute handbag.You can buy a dozen of them instead of affairs one artist handbag.They accept all the qualities of a acceptable handbag.The architecture is actual agnate to the artist handbag.If you buy it from a acceptable store,abounding a times it becomes ysl outlet actual difficult to differentiate amid the absolute artist backpack and its replica.You can backpack altered accoutrements with altered outfits.Doesn't it complete abundant that you will accept a new bag for fendi outlet a new outfit? You can accumulate appropriate ones just for occasions.This will aswell actualize a acceptable consequence amidst others.
Posted by decy | Wednesday, April 23 2014 at 5:24AM ET
Post a Comment
You must be registered to post a comment.
Not Registered?
You must be registered to post a comment. Click here to register.
Already registered? Log in here
Please note you must now log in with your email address and password.