Debt collection

Having collectively made billions in consumer loans that have become delinquent at record rates since 2008, lenders now understand that relying on the credit score as a predictor of future consumer payment behavior is a bad business practice.

Colorado Attorney General John Suthers’ office filed a lawsuit last week against Westminster, Colo.-based Real Talk Network, alleging the company engaged in false and deceptive trade practices and violated the state's consumer credit laws.

In the second half of June, consumers sued an estimated 471 different collection agencies and creditors under various statutes - including 416 lawsuits citing at least one violation of the Fair Debt Collection Practices Act (FDCPA), according to U.S. District Court complaint dockets.

Eric Koppelman, a former mortgage title closer, was sentenced to four years in prison for playing a role in a scheme to steal more than $6 million of proceeds from home mortgage loans, according to the U.S. Attorney's office in New York.

Portfolio Recovery Associates Inc., a Norfolk, Va. publicly traded debt buyer, today announced that a Missouri court dismissed a case filed in August 2009 by the Missouri Attorney General's office against the company and its subsidiary, Portfolio Recovery Associates LLC.

For most lenders, making changes to credit policy is not an easy or expedited process. It often takes financial institutions at least nine months to develop, test and deploy a credit risk policy concept and more likely this process is somewhere closer to 12 to 18 months.

A federal court has halted an international scheme that used identity theft to place more than $10 million in charges on consumers’ credit and debit cards.

An estimated 541 different collection agencies and creditors are named in 503 consumer statute lawsuits filed nationwide in the first half of June, according to data from U.S. District Court complaint dockets. The numbers are up from the previous two reporting periods.

Several former attorneys at legal collection giant Mann Bracken LLP have formed a new collection firm.

Nearly six months after closing, collection law firm giant Mann Bracken is still receiving payments mailed from delinquent debtors. Figuring out who should receive the money is one of the biggest challenges facing the receiver appointed to oversee the firm's unwinding.

An estimated 452 different collection agencies and creditors are named in 482 consumer statute lawsuits filed nationwide in the second half of May, according to data from U.S. District Court complaint dockets. In the first half of May, consumers sued an estimated 425 agencies and creditors in 495 consumer statute lawsuits.

The Federal Trade Commission approved a final settlement order with Dave & Buster's Holdings Inc., an entertainment and restaurant chain. The final order settles charges that the company failed to secure customers' sensitive credit and debit card information, resulting in "several hundred thousand dollars" in fraudulent charges. The FTC did not release an exact total.

U.S. consumers took on $1 billion more in debts in April, even as credit card balances declined for the 19th straight month, according to the Federal Reserve's monthly G.19 consumer credit report.

Asset Acceptance Capital Corp., a Warren, Mich.-based debt buyer currently under federal investigation for its collection practices, said Friday that lenders agreed to loosen some restrictions in its own credit facility and increase its borrowing limit.

New York Attorney General Andrew M. Cuomo filed a lawsuit against several Western New York collection companies for violating the Fair Debt Collection Practices Act and several New York state collection laws.

Advanced Call Center Technologies, a Berwyn, Pa.-based collection agency, will pay more than $1.5 million to a Lewisville, Texas man after a jury found the agency harassed him with racially charged phone calls.

At the request of several members of Congress, the Federal Trade Commission is again delaying enforcement of the “Red Flags” Rule - this time through the end of the year while Congress considers legislation that would affect which entities are covered by the rule, according to an FTC statement.

Large or small, sooner or later, every business that sells on credit will have a collection issue. Selecting the right collection firm is central to overcoming that challenge and a critical long-term factor in the success of your business.

Editor's Note: The following is a news release based on a report issued yesterday. Collections & Credit Risk wants to know what you think about the report. Contact Darren Waggoner at 815.463.9008 or darren.waggoner@sourcemedia.com.

An estimated 425 different collection agencies and creditors are named in 495 consumer statute lawsuits filed nationwide in the first half of May, according to data from U.S. District Court complaint dockets. The 15-day total is the lowest for a two-week period since early February, when consumers sued 293 different agencies and creditors.