Debt collection

U.S. consumer credit defaults in April declined from the previous month to 1.1%, falling to the lowest mark since June 2006, according to the S&P/Experian Consumer Credit Default Indices.

A proposed U.S. Senate bill that would send unpaid Internal Revenue Service taxes to private collection agencies would be a money-loser for the tax agency, argues the IRS Oversight Board, a watchdog panel.

The U.S. Department of Education named ConServe, formally known as Continental Service Group Inc., as the top performing private collection agency on the department's contract for the first quarter ending March 31.

A report released Thursday by the Consumer Financial Protection Bureau highlights illegal actions the agency has uncovered from overseeing the collections, consumer reporting and payday lending markets.

Arrow Global, a United Kingdom-based buyer of delinquent debt from credit card companies and banks, reported strong Q1 collections on purchased loan portfolios.

DebtX, on behalf of SEBA Professional Services LLC, will sell a $4.8 billion portfolio of non-performing residential loans in June for the U.S. Department of Housing and Urban Development.

The people behind a Southern California-based debt collection operation also will pay $4 million to settle the case against them.

The case against a South Dakota-based payday lending operation is wrapping up in New York state. The operation claimed to be affiliated with a Native American tribe in an attempt to avoid legal action.

The National Consumer Law Center on Monday sued the U.S. Department of Education as a result of the agency refusing to hand over documents detailing how the federal government awards bonuses to collection agencies it hires to pursue defaulted student loans.

Account Control Technology Holdings Inc. announced Tuesday the acquisition of Convergent Resources Holdings LLC. in a deal that will create a business processing outsourcing firm with more than 3,900 employees and 20 offices.

The law will reduce from 12 years to three the time debt collectors have to pursue homeowners in court for fore­closure debt.

The Commercial Law League of America has debuted its newly revised commercial collection agency certification program.

U.S. Sen. Pat Toomey (R-Pa.) has introduced a bill with bi-partisan support that exempts collection attorneys engaging in litigation from the Fair Debt Collection Practices Act.

The owner of a Houston-based debt collection operation, along with two company managers, are banned from the industry. The three were charged with multiple Fair Debt Collection Practices Act and FTC Act violations.

Auto loan debt per borrower has increased for three consecutive years, up nearly 13% - more than $1,900 - since the trend began in Q1 2011.

Legislation in Minnesota designed to restrict the payday loan industry fell short Friday of winning final approval in the Minnesota Senate, meaning advocates of reform will have to wait until next year.

U.S. student loan debt rose to a record $1.2 trillion for the first quarter ended March 31, following a $31 billion jump, the Federal Reserve Bank of New York reported.

TransUnion attributes the improved delinquency and debt rates to consumers paying off charges made during the holiday season as well as consumers using their tax refunds to pay off debts.

Six U.S. senators sent a letter to the Consumer Financial Protection Bureau this week pushing the agency to take action to protect consumers from predatory storefront and online payday lenders.

A private and public partnership to recover taxpayers’ debt is an efficient alternative to prevent government program cuts or tax increases to make up for losses, according to the association.