Collections & Recovery

The collapse of Silicon Valley Bank was the largest U.S. bank failure since 2008’s financial crisis. Signature Bank’s demise quickly followed, leaving consumers anxious as other banks assessed their risks. Everyone is wondering: what does this mean for us? Joann Needleman, Stephanie Hager, and Kevin Kent break down exactly what fintechs, private equity, and banks need to know. Get their take here: https://lnkd.in/em6ryGD8 #collectionsandrecovery #collections #debtrecovery #consumerlending #debtcollection #banking #bankingcrisis Clark Hill Law

Consumer debt is soaring, leading to a surge in delinquencies and unpaid accounts. Collections agencies face a daunting task, but adding more staff isn't always an option. An omnichannel communication platform is key to lightening the load for overworked teams. But what does that look like, and how can you get there? Get the scoop in this article by Finvi’s Matt Butler. https://lnkd.in/gKFXCgCY #Collections #Lending #DebtRecovery

A case pending in the Fourth Circuit Court of Appeals could upend the enforceability of dispute provisions found in a majority of consumer credit card agreements. The Plaintiff in the Bailey matter asserts that both the arbitration agreement and the class action waiver provisions in her credit card contract are not binding agreements because the creditor could modify the terms. The Federal District Court denied the creditor’s motion to arbitrate the case which prompted an interlocutory appeal to the Fourth Circuit Court of Appeals. Get the full story, as told by John K. Rossman of the Rossman Attorney Group, PLLC, here: https://lnkd.in/gZsFn9BM #Collections #Lending #DebtRecovery

As student loan forgiveness programs shift, the cost of living wears on consumers, and the holiday season closes in, the debt collections industry anticipates a surge in financially distressed consumers. Andrew Domino (Managing Partner & COO, Bridgeforce) shares battle-tested hardship policies to offer for the customer in financial distress. For those in financial distress due to student debt, Domino suggests: -Grace Period Extensions -Financial Counseling and Education -Customized Solutions For those with more general financial distress, he recommends: -Income-Driven Repayment Plans -Temporary Payment Suspensions -Extended Repayment Terms -Interest Rate Reduction -Loan Rehabilitation Programs -Flexible Communication Options -Debt Settlement Programs Delve into Andrew’s suggestions here: https://lnkd.in/d4V2Fssg #Collections #Lending #DebtRecovery

In a recent court ruling in the Middle District of Florida, the jury awarded $225,000 in punitive damages, branding the defendant's conduct as "reprehensible.” In Medley v. DISH Network, a plaintiff facing financial difficulties opted for the defendant's "pause" program but later filed for bankruptcy. Despite legal representation, DISH bombarded the plaintiff with billing notifications and calls, violating the Florida Consumer Collection Practices Act. The court's decision highlights the harm inflicted, and the defendant's indifference to the plaintiff's distress, financial vulnerability, and repeated actions. Get the full story in this article by Mark Windham, Jonathan P. Floyd, Meagan Mihalko & Stefanie Jackman of Troutman Pepper. https://lnkd.in/eitq9GEY #Collections #Lending #DebtRecovery 

It’s hard to believe that the year is already winding down, but consumer debt certainly isn’t. Not having the right collection partner today can equate to missed recovery opportunities tomorrow. So what makes the end of the year such an important time to evaluate your current collections partner? The short answer is that it will set you up for a successful 2024. Here’s how: 1. Be Ready for the Aftermath of Holiday Spending Holiday spending is likely to lead to a surge of delinquencies in Q1 of 2024. To be ready, your debt collection should be preparing for Q1 late-stage collections now. 2. Get a Jump on Engagement Before Tax Season Now is the time to start preparing engagement strategies to reach and remind consumers to prioritize repayments when tax refunds come around. 3. Ensure Your Partners Will Meet Customers Where They Are. Consumers will be spending a lot of time online through Q4 and into Q1, so digital communications is crucial to stay top of mind as holiday spending rolls into delinquency and competition for tax refund dollars ramps up. Get the full article by Cali Thompson here: https://lnkd.in/e4TKbvdf #Collections #Lending #DebtRecovery Cali Thompson TrueAccord

The collection world is no stranger to arbitration – it's a common dispute resolution mechanism now, and it's a thorn in the side of creditors. Creditors file suit, then find that the consumer has filed a motion to compel arbitration based on some fine print in an agreement or contract. More recently, creditors who have attempted to enforce their arbitration clauses have found Courts reluctant to agree. The recent case of Heckman v. Live Nation Entm't, Inc. provides valuable insights into arbitration trends, illustrating where Live Nation went wrong, and what stakeholders should watch out for when dealing with arbitration language in their contracts. Read Bryce Noel’s analysis of the case at the link in the comments. #Collections #Lending #DebtRecovery

The Consumer Financial Protection Bureau had a busy October. In an article originally published on Hudson Cook, LLP’s blog, Justin Hosie, Eric Johnson and Laura Bacon break down the top ten “bites” of the month to help you stay on top of recent developments. Get the latest insights on: -credit repair services -NSF fees -”junk fees” -access to fair credit for immigrants -medical bill rulings -key legal cases Don’t miss these crucial updates. Read the full overview at the link in the comments. #Collections #Lending #DebtRecovery

Texting is the most effective way to reach delinquent consumers, but, like all communication methods used in debt collection, it’s not easy to comply with regulations. What does Jesse Bird, Chief Technology Officer at TCN recommend? 1. Identify small wins and take them Bird warns against neglecting technologies like AI or machine learning and instead suggests looking for simple ways they can fit into an overall strategy. “24-hour payments available via phone, via text, via portal, or data processing automation or agency efficiency tools for agents,” are all small wins. 2. Advocate for clearer regulation It’s a longer game, but Bird says it’s important that the industry “demonstrates that these messages are wanted, allowed, and legal.” Consumers prefer to deal with most business matters via text. Collections business is no different. The industry must make that clear to the regulators. 3. Get a good partner The ARM industry is a complicated one. Bird recommends finding a partner who can help navigate the regulations and help you decide how to integrate technology to make your business better. Get more of Bird’s advice in this episode of Executive Q&A. https://lnkd.in/eUa8XyWJ #Collections #Lending #DebtRecovery 

The CFPB just released a special Supervisory Highlights report, showcasing $140M+ in refunds to consumers, mainly from overdraft and NSF fees. Simultaneously, the FTC proposed a rule to ban "hidden and bogus" fees, and CA Governor signed SB 478, prohibiting hidden fees from July 1, 2024. What’s next in the “war on fees?” Full article linked in the comments. #Collections #Lending #DebtRecovery David N. Anthony, Chris Capurso, Stefanie Jackman, James Kim, Lori Sommerfield, Ethan G. Ostroff, Chris Willis, Alan D. Wingfield, Troutman Pepper's