Debt collection

Consumers sued an estimated 534 collection agencies and creditors under consumer statutes between August 16-31, an increase of more than 100 compared with 426 that were sued in the first half of the month, according to data from U.S. District Courts.

Consumer borrowing fell again in the U.S. in July as households reduced credit card use for a 23rd consecutive month. Borrowing dropped at an annual rate of $3.6 billion, according to the Federal Reserve's G.19 report. That marked the 17th drop in credit in the past 18 months.

The former president of a payment processing company has agreed to settle charges brought by the Federal Trade Commission and seven states for his role in an operation that allegedly debited more than $200 million in bogus charges from consumers’ bank accounts.

With the recent upheaval in the financial sector, consumers have changed the way they borrow, spend and save. In a quest for better customer service, more competitive rates and less fee gouging, many have moved from larger institutions to smaller community banks, credit unions and online banking.

The State Foreclosure Prevention Working Group (SFPWG) recently released a study showing that as many as 60% of mortgage borrowers did not have their accounts forwarded to the mortgage lender’s loss mitigation department after becoming 60 days or more late on their payments.

New York regulators are conducting an investigation into deceptive credit card marketing practices that target students at their colleges.

One of the owners of a payday loan and collection operation agreed to settle Federal Trade Commission charges for his role in a scheme that illegally tried to garnish borrowers’ wages and used other illegal collection practices.

A credit repair operation agreed to stop making false claims and stop charging upfront fees under a settlement with the Federal Trade Commission.

The rate of auto payments 60 days or more past due dropped to 0.53% of outstanding auto loans in the second quarter, from 0.73% a year ago, according to TransUnion.

American Home Mortgage Servicing Inc. (AHMS), a Coppell, Texas-based mortgage servicer, faces charges by Texas investigators of using unlawful and aggressive collection tactics and improperly misleading homeowners, Texas Attorney General Greg Abbott's office announced Monday.

The number of collection agencies and creditors sued between August 1-15 totaled 426, down from 488 sued in the July 16-31 period, but up from 389 in the first half of July, according to data from U.S. District Courts.

The Federal Trade Commission on Thursday told the U.S. Senate Committee on Commerce, Science, and Transportation that protecting financially distressed consumers from deceptive debt relief schemes is a top agency priority.

The number of collection agencies and creditors sued under various consumer statutes spiked to 480 in the second half of July, compared with 389 in the first half, according to data from U.S. District Courts.

Financial institutions have had no shortage of regulatory changes to manage in recent months. While the CARD Act and the Dodd-Frank Wall Street Reform and Consumer Protection Act have occupied the majority of the headlines, there are other regulatory changes the financial sector is trying to navigate.

Social networking sites help people share personal and sometimes business information with others through an avenue designed to make it easy - whether it involves text, pictures, documents, music or videos.

The U.S. Justice Department has made the fight against money laundering and financing of criminal organizations a priority.

An estimated 389 different collection agencies and creditors were sued citing consumer statute violations in the first half of July, according to data from U.S. District Courts.

Two debt buyers reported July 29 that second-quarter profits topped Wall Street expectations.

For-profit companies that sell debt relief services by telephone, as of Oct. 27, will not be able to charge a fee before they settle or reduce a customer’s credit card or other unsecured debt, according to a new rule approved and announced July 29 by the Federal Trade Commission.

New York Attorney General Andrew M. Cuomo today announced a settlement with a Buffalo-based collection agency that harassed and intimidated consumers, including some who did not owe the debt in question.