Last week our editorial team picked out the most relevant news for ARM industry professionals trying to stay on top of the ever-changing debt collection landscape. This included an article warning nonbanks to plan for CFPB oversight, a breakdown of the impacts of the CFPB’s late fee rule, and a notice to compliance professionals regarding consumer complaints. Read on to see a synopsis of everything we highlighted during the week and why our editorial team thinks you should know about it.
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Did you know that a consumer’s credit score isn’t the most indicative measure of their capacity to pay? Credit scores lag, they don’t provide a full picture, and they can’t be monitored daily. By focusing on capacity to pay instead of a credit score, many in the collections industry are seeing an uptick in their paying accounts. But what is capacity to pay, and why does it matter?
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On February 27, 2024, the California Department of Financial Protection and Innovation (the Department) entered into a public consent order with a company that provides consumer financial services to California residents. The consent order alleges that between January 2020 and September 2022, the Department received complaints from consumers raising concerns about their accounts and customer service interactions with the company, which the Department forwarded to the company for investigation and response. The Department also investigated the company’s handling of those consumer complaints.
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