Debt collection

The collection industry is always up for a deal, and in the merger and acquisition landscape, there is always a deal to be made. Whether it is a good or bad deal is something entirely different.

A collection agency owned by a convicted felon, and recently accused of using strong-arm tactics, has been barred from collecting debts in Colorado, the state's Attorney General John Suthers announced today.

At the recent National Collections & Credit Risk Conference, financial experts shared their perspectives on managing collections in a presentation titled, “Decrease Defaults with Untapped Customer Information.” This article is a continuation of that discussion.

The Ohio General Assembly is considering legislation to keep payday lenders from trying to make up revenue shortfalls by hitting consumers with various fees.

Through the first four months of 2010, the number of lawsuits filed citing Fair Debt Collection Practices Act (FDCPA) violations is far ahead of the record pace set in 2009, according to data from the U.S. District Courts. Consumers filed an estimated 3,262 FDCPA cases through April.

TransUnion's Credit Risk Index (CRI) declined in the first quarter after five straight quarterly increases, indicating that consumer credit risk conditions in the U.S. are improving.

Several recent economic indicators show that the recovery is gaining strength, but still isn't growing fast enough to bring down the unemployment rate.

I just finished reading your article on legislation to restrict debt settlement firms. The information you presented accurately portrayed the negative allegations that were put forth recently. (See story.)

Banks and insurers are more optimistic and have made strides strengthening risk management, according to a survey of 346 senior risk management executives in the financial services industry conducted in February by the Economist Intelligence Unit.

Madison Dearborn Partners LLC, a Chicago-based private equity firm, is acquiring a majority 51% interest in credit reporting company, TransUnion LLC.

Two senators introduced legislation Thursday to restrict debt settlement companies from collecting fees before a settlement is reached. Under the legislation, consumers would receive detailed upfront disclosures - including a list of all costs and promised services.

An estimated 525 different collection agencies and creditors were sued under consumer statutes, primarily the Fair Debt Collection Practices Act and the Fair Credit Reporting Act, in the first half of April, according to data from U.S. District Court dockets. The number is the same as the total in the second half of March and down slightly from 545 in the first half of March.

A Supreme Court decision yesterday could make it easier for consumers to sue collectors for sending erroneous collection notices.

Two operators of a mortgage modification scam in California were sentenced last week to a year in jail and four years probation and must repay more than $32,000 to three dozen victims - a sum that could increase if more victims come forward.

Many in the collection business have fallen on bad times. For some, it’s the first time they’ve been in this position, and they’re looking to lenders for collaborative solutions to help manage their debt.

The Federal Trade Commission Friday announced it is mailing more than $4 million to consumers identified as victims of an illegal credit card billing scam operated by J.K. Publications, raising the total to more than $16 million since an initial mailing last June.

The Federal Trade Commission charged a payday loan operation with illegally trying to garnish borrowers’ wages and using other illegal collection practices. The FTC seeks to stop these practices and require the operators to surrender improperly collected money so it can be used for consumer refunds.

With higher delinquencies and loan losses, along with tight budgets and more troublesome accounts, it is critical to know how to rank and assign accounts to be worked in collections.

Without a doubt people choose to live in Florida for its climate, beautiful beaches and year-round recreational diversion. But there is another reason why people flock to the state.

NCO Group, the largest collection agency based on revenue, reported an $84.2 million loss for the year ended Dec. 30, 2009 in a filing with the Securities and Exchange Commission.