Debt collection

TransUnion predicts that both mortgage and credit card delinquencies will drop sharply again in 2011, after large declines already experienced in the second half of this year.

The Federal Trade Commission announced Monday it has banned a deceptive advertising operation from the debt-relief business under a $28.2 million judgment settlement.

Internal Revenue Service agents and local law enforcement raided collection agency Maxwell, Turner & Associates Inc.'s office in Monrovia, Calif. on Friday and arrested two suspects for allegedly scamming local businesses out of millions of dollars in a telemarketing scheme.

The Federal Trade Commission charged three debt-relief operations with making unsubstantiated claims to lure consumers nationwide into paying thousands of dollars in upfront fees, but failing to reduce credit card debts as promised, the agency announced Thursday.

Risk is a four-letter word in the banking world these days. “Don’t take any,” is the prudent answer for most financial institutions.

Foreclosure homes accounted for 25% of all residential sales in the third quarter ended Sept. 30 and the average sales price of properties sold in some stage of foreclosure was more than 32% below the average sales price of properties not in the foreclosure process.

The total number of consumer statute lawsuits filed in the Nov. 1-15 period soared to 558, up from 503 in the previous two-week period and 497 in the first half of October, according to data from U.S. District Courts.

The Federal Trade Commission reached settlements late last week to permanently shut down a Web site that allegedly deceptively touted free government grants for personal expenses or paying off debt.

West Virginia Attorney General Darrell McGraw's office is seeking $3.9 million from a payday loan lender for making and collecting payday loans in violation of a court order, according to a lawsuit filed Tuesday.

The national mortgage loan delinquency rate fell to 6.44% in the third quarter ended Sept. 30, the largest quarterly decline since the fourth quarter of 2006, according to an analysis by credit bureau TransUnion.

Account growth has become the number one priority for lenders as they cautiously begin to grant more credit to consumers. However, with a limited pool of potential customers and a desire to avoid taking on too much risk this is not an easy task.

The Federal Trade Commission announced Friday law enforcement actions against several scams that targeted homeowners behind in their mortgage payments or facing foreclosure.

A U.S. District Court jury in Cincinnati found homebuilder Bernard J. Kurlemann guilty of conspiracy and fraud for his role in a mortgage fraud scheme aimed at deceiving lenders by agreeing to sell high-end luxury properties to "straw buyers" - individuals who buy properties in name only.

The Federal Trade Commission began mailing refund checks Wednesday to 957,928 people who were victims of false claims made by LifeLock Inc., which told consumers it could provide absolute protection from identity theft if they signed up for its identity protection service. The mailings will continue for two weeks.

With fewer borrowers delinquent on one or more accounts, U.S. consumers' credit risk level dropped in the third quarter ended Sept. 30 to a mark not seen since the first quarter of 2009, according to TransUnion's Credit Risk Index (CRI) released Wednesday.

A federal district court in Chicago shut down an international robocall ring that allegedly conned consumers out of $995 each with false promises to reduce their credit card interest rates.

A New Jersey lawyer and his Pennsylvania-based collection agencies must cancel nearly $8 million in alleged debt they tried to collect from more than 1,900 West Virginia residents, West Virginia Attorney General Darrell McGraw's office announced Tuesday.

ACA International announced Tuesday that it did not renew longtime CEO Rozanne Andersen's employment contract and has replaced her effective immediately.

Illinois Attorney General Lisa Madigan filed a lawsuit last week against Omega Business Center, a Chicago-based business, claiming it bilked consumers out of an estimated $300,000 for debt relief services it never provided.

U.S. home foreclosures fell in October as banks put a freeze on auctions of homes in default to review loan documents in wake of a recent "robo-signing" controversy.