Featured Blog Posts - CollectionTechnology.net

Experian’s Tallyman Gets An Update

2009-11-09T17:00:00.000Z

Global information services company Experian rolled out an updated verion of its collections process management software, according to Finextra.

New features to Tallyman, include:

-Customer level collections capabilities. Tallyman now lets collectors manage customers in a more holistic way by assessing their exposure to all products;

- Tallyman's integration with Experian's range of software and information services helps to provide more insight into a customer's overall credit exposure, including those who are most likely to defaults;

- Faster implementation; and

- A new operations dashboard provides collection managers with real time metrics and information.

CollectionTechnology.net is a proud presenter of the 2010 Collection Technology Summit. Click here for more details.

New Community Tool Answers Business Questions

2009-11-09T15:00:00.000Z

Have a business question? Startups.com may have an answer for it, thanks to the participation of others.

In short, the new web site wants to create a resource for entrepreneurs to pose their business questions and respond to others’ questions when they have answers. Some questions raised today include:

- What’s the best way to optimize my website’s marketing using videos on YouTube and other video platforms?

- Need patent approval to start a social networking site like Friendster, Facebook etc.?

- Which CMS is the best for a news site?

Startups.com Network, Inc. launched the site.

CollectionTechnology.net is a proud presenter of the 2010 Collection Technology Summit. Click here for more details.

Collectors, Beware!

2009-11-09T15:00:00.000Z

There are a lot of debtors out there, consequently there are a lot of creditors, and when money is involved, scam artiest come out of the wood work. This begs the question by creditors and collectors, "Who can I trust to locate a debtor?"
Perhaps I can shed some light on the subject. First, make sure the company locating the debtor meets the requirements of your state or the state they are located in. Is the company you are considering using a skip tracing company? If so, do they meet the requirements of your state? In Florida, for example, in order for a person to legally conduct skip tracing they must work for a member of the Florida Bar, be a certified process server, or a licensed private investigator. A private investigator must be licensed in just about every state. Contact the division of your state that over sees licensing to find out if the license is valid and if there have been any complaints or allegations filled against this company.

All straight with the legal details? Here are a few other things you might what to consider:
1. Where are they located? No reputable business operates out of a mail box or only on the Internet.
2. Ask if the company has a valid business license.
3. What databases do they use to locate the debtor? If they are using one of the information vendors on
the Internet, why bother? These databases are available to any one with a credit card. Make sure your
company uses private databases.
4. Even the best private databases miss things now and them. You want a company that has the ability
and desire to do some old fashion detective work, because that is what may be required to locate the
debtor and hidden assets.
5. What is the turn around time? Does it meet your needs?
6. Does this company have the ability to search for the debtor and/or assets outside of the United States?
7. Have a fee and payment schedule that is agreeable to all in writing. Often a search, especially
for hidden assets, requires additional time and resources to locate all of the money and
property. Naturally you want to be consulted first and not be shocked with a bill for thousands of
dollars.
8. Contact your Better Business Bureau or local consumer protection agency to see if this company
has any complaints or praises on file.
9. Make sure you have an open line of communication with the company. You may have questions or
concerns (like what is taking so long to find this debtor?) therefore you want an investigator
is willing to discuss your case with you.

I hope these tips will help. If you have any questions or concerns, please feel free to contact me at http://www.missinglocated.com. I will be happy to help.

Top 7 methods for improving collection procedures

2009-11-09T13:30:00.000Z

Some businesses have slow paying customers or past due balances because they didn’t “train” their customer in the beginning. It is important that your customers know your credit policy and/or your terms of payment before they become customers. Reiteration of your credit policy, when payment is overdue, is a good step to take in trying to obtain payment. Always ask for payment when it is due.

You should never extend credit to a new customer without having them complete a credit application and go through the credit approval policy. Once you extend credit, it is important to maintain accurate records on an account payment history.

1. Follow your collection policies no matter what.

2. Change your collection letters frequently, you can make them stronger and more action oriented.

3. Discourage payments on account or changes in payment terms. Too many payment plans or changed payments terms can impair your cash flow.

4. When you receive payments “on account” be sure to follow up right away with a letter or phone call thanking them for their payment and telling them what their new balance is and when to send the next payment. Don’t ask them when they will send the payment; tell them when to send it.

5. On large accounts, call or send a reminder just a few days after terms if they become past due.

6. Ask to speak to a manager or owner when making collection calls rather than speaking to a secretary or receptionist. Go right for the decision maker.

7. Update your records often, making sure the telephone numbers you have and addresses for your customers are current and up to date.

This is an excerpt from my new e-book Effective Collections, a proactive approach to credit management.

FDCPA and Other Consumer Rights Lawsuit Statistics, October 16-31, 2009

2009-11-06T20:53:32.000Z

FOR IMMEDIATE RELEASE:

Grand Rapids, MI (November 6, 2009) – The following statistics are provided to the ARM industry courtesy of WebRecon LLC.

Monthly Recap: There were a total of 766 FDCPA cases filed for the month of October 2009, along with 89 FCRA cases and 7 TCPA cases. This compares to 506 FDCPA cases and 101 FCRA cases in October 2008.

FDCPA and Other Consumer Rights Lawsuit Statistics, October 16-31, 2009

There were about 492 lawsuits filed under consumer statutes in the second half of October. Here is an approximate breakdown:

• 415 Fair Debt Collection Practices Act
• 37 Fair Credit Reporting Act
• 2 Telephone Consumer Protection Act
• 19 Truth In Lending Act
• 1 Consumer Legal Remedies Act
• 1 Credit Repair Organizations Act
• 2 California Unfair Competition Law
• 3 Equal Credit Opportunity Act
• 2 Electronic Fund Transfers Act
• 2 Fair Housing Act
• 1 Federal Trade Commission Act
• 2 Home Ownership And Equity Protection Act
• 1 Indiana Deceptive Consumer Sales Act
• 1 New York Unfair and Deceptive Acts and Practices
• 1 Pennsylvania Unfair Trade Practices and Consumer Protection Law
• 6 Real Estate Settlement Procedures Act
• 1 Right to Financial Privacy Act
• 1 Racketeer Influenced and Corrupt Organizations Act
• 1 Unfair Business Practices
• 7 Unjust Enrichment
• 1 Wisconsin Consumer Act
• 1 Washington Consumer Protection Act
• 2 West Virginia Consumer Credit & Protection Act

Summary:
• Of those cases, there were about 541 unique plaintiffs (including multiple plaintiffs in one suit).
• Of those plaintiffs, about 155 had sued under consumer statutes before.
• Combined, those 155 plaintiffs have filed about 774 lawsuits since 2001
• Actions were filed in 108 different US District Court branches.
• About 483 different collection firms and creditors were sued.

The top courts where lawsuits were filed:
• 40 Lawsuits: California Central District Court – Western Division – Los Angeles
• 33 Lawsuits: Illinois Northern District Court – Chicago
• 23 Lawsuits: New York Eastern District Court – Brooklyn
• 18 Lawsuits: Florida Middle District Court – Tampa
• 17 Lawsuits: Pennsylvania Eastern District Court – Philadelphia
• 15 Lawsuits: New York Eastern District Court – Central Islip
• 15 Lawsuits: Florida Southern District Court – Fort Lauderdale
• 14 Lawsuits: Minnesota District Court – DMN
• 12 Lawsuits: California Southern District Court – San Diego
• 12 Lawsuits: Colorado District Court – Denver

The most active consumer attorneys were:
• Representing 32 Consumers: George Thomas Martin, III
• Representing 23 Consumers: Gene W. Choe
• Representing 22 Consumers: Matthew William Kiverts
• Representing 19 Consumers: Ryan Scott Lee
• Representing 19 Consumers: Adam Jon Fishbein
• Representing 17 Consumers: Sergei Lemberg
• Representing 14 Consumers: Nicholas J. Bontrager
• Representing 11 Consumers: Adam Jacob Krohn
• Representing 11 Consumers: Kenneth W. Pennington
• Representing 11 Consumers: Donald A. Yarbrough

Statistics Year to Date:

8052 total lawsuits for 2009:
• 6638 FDCPA
• 994 FCRA
• 23 TCPA

Number of unique Plaintiffs: 7898 (including multiple plaintiffs in one suit)

The most active consumer attorneys of the year:
• Representing 379 Consumers: Ryan Scott Lee
• Representing 270 Consumers: Nicholas J. Bontrager
• Representing 199 Consumers: Kenneth R. Hiller
• Representing 191 Consumers: Todd Michael Friedman
• Representing 174 Consumers: Brent F. Vullings

About WebRecon LLC: Creditors and collection firms use WebRecon’s services to easily segregate predictably litigious consumers from their databases. A significant percentage of consumer litigation is initiated by the same consumers over and over again, and screening them out of the general population can reduce lawsuits by as much as a third.

For more information, please contact:

Jack Gordon, CEO
WebRecon LLC, The FDCPA Litigant Alert
Web: www.WebRecon.com
Email: admin@webrecon.net
Phone: (616) 682-5327

###

Shopping Time: Noble Systems Aquires TDI Assets

2009-11-06T15:00:00.000Z

It 'tis the shopping season, and Noble Systems Corp. has scored another technology purchase.

Noble has acquired TDI's Liberation unified communications platform, related client-base and all related intellectual property, including the TDI brand, whose main presence centers in on the cable, resort and newspaper industries.

Nobel said it will “bring on board key staff from TDI/TeleDirect’s development and service delivery teams, while taking advantage of organizational efficiencies.”

TDI, meanwhile, is getting another name change to dvsAnalytics, Inc. and will continue its work on its recording and performance solution, Encore.

The terms of the transaction were not disclosed.

Noble also recently acquired TouchStar assets. Read about that here.

S.1490 - Personal Data Privacy and Security Act of 2009

2009-11-06T07:02:20.000Z

A bill to prevent and mitigate identity theft, to ensure privacy, to provide notice of security breaches, and to enhance criminal penalties, law enforcement assistance, and other protections against security breaches, fraudulent access, and misuse of personally identifiable information.

Bill text Introduced 7/22/09:
http://www.opencongress.org/bill/111-s1490/text

Update: 11/5/09

S. 1490, Personal Data Privacy and Security Act of 2009 (Leahy, Specter, Feingold, Schumer, Cardin)
Ordered Reported by Roll Call Vote, 14 - 5

Amendment GRA09882 (Leahy) Adopted by Unanimous Consent
http://judiciary.senate.gov/legislation/upload/GRA09882-Data-Privacy.pdf

Amendment GRA09859 (Sessions) Rejected by Roll Call Vote, 6 - 13

Amendment GRA09884 (Kyl) Rejected by Roll Call Vote, 7 - 12

Amendment GRA09876 (Coburn) Withdrawn

Amendment GRA09877 (Coburn) Withdrawn

Amendment GRA09857 (Sessions) Withdrawn

Amendment GRA09889 (Kyl) Withdrawn

Nominate Best Agencies for Excellence Awards

2009-11-05T20:30:00.000Z

CT.net members are invited to nominate collection agencies and law firms for a 2010 Collection Technology Excellence Award.

To make your nomination, click here.

The awards recognize the companies that have made the greatest contribution to the collection industry in 2009, with a particular focus on IT excellence. The winners will be determined from your nominations, our research and feedback from our Board of Advisors.

Nominations may be submitted until Wednesday, Dec. 23, 2009, at 5 pm ET.

The awards will be presented at the Collection Technology Summit, Jan. 13-14 in San Antonio.

Get involved.

ACA Curbs Self-Regulation Plans

2009-11-05T16:00:00.000Z

ACA International decided to stop further discussions of creating a self-regulation structure for the industry in a meeting yesterday, reports insideARM.

Cynthia Wilson writes:

"In July, ACA board members gave its executive committee the power to study and, if feasible, draw up a plan for a self-regulatory structure, complete with a nationwide debt collector registry and dispute resolution program.

But during a special meeting Wednesday of the board at ACA’s annual Fall Forum Conference in Chicago, directors voted to take away that authority. The board also directed the executive committee to withdraw, in writing and within 24 hours of the meeting’s end, its amendment proposal, and confirm to all board members the proposal’s withdrawal to Rep. Frank and other political bodies by Friday."

Read the story here and here.

It's not exactly clear what is going on here. CT.net will follow up as more news unfolds. What is for certain is the amount of controversy this proposed legislation caused. Even on CT.net, industry members vocalized opposition. Below are two such comments, specifically regarding the creation of a national debt registry:

"Personally, I don't see any advantage to the average agency or collector and I don't think any of the regulatory agencies are going to give up their control to ACA any more than they would to Obama's suggested new agency."
Debbie Snyder, Collection Center, Inc

"NO! NO! NO! All this project amounts to is more goverment. MISSION IMPOSSIBLE~There is no way this could be accomplished without some very expensive fees to qualify to become a registered collector. Employers should know who their problem collectors are already. Our government has been writting laws to moniter and sterilize the third party debt collection industry since 1977 and it seems they still aren't done, enough is enough!"
Donald F Daly, GTM RECOVERY

Read more of those comments here.

Worthy Read: Collector Takes on Mobster

2009-11-05T15:30:00.000Z

It takes guts to be a collector.

The New York Post reports a Long Island debt-collection law firm is suing Alphonse “Allie Boy” Persico, the imprisoned boss of the Colombo crime family, for more than $34,000 in unpaid credit card bills.

“The suit is bound to be a new experience for Persico, who presumably became accustomed to demanding money rather than forking it over,” writes Alex Ginsberg and Kati Cornell for the Post.

Allie Boy is currently doing life in the federal pen.

Read the story here.

Bank Account Search Needed

2009-11-04T17:06:54.000Z

Could you recommend a company that will do Bank Account Searches? Have an attorney client in need of such service. Thank you.

HSBC to Cut 1700 UK Jobs

2009-11-03T17:30:00.000Z

HSBC announced today that it would cut about 1700 employees from its UK workforce, with the bulk of the cuts occurring in its credit card and collections operation.

The Independent reports the bank will trim nine regional offices to two sites in Birmingham; however, it will add additional jobs at those two locations.

Read the story here.

CollectionTechnology.net is a proud presenter of the 2010 Collection Technology Summit. Click here for more details.

Post Office Says Few Price Hikes in 2010

2009-11-03T14:30:00.000Z

A message to customers from Postmaster General, John E. Potter:

To Postal Service Customers:

Many of you have expressed concerns regarding mailing costs for 2010. The tough economic climate has presented significant challenges to all of us and pessimistic speculation has suggested that postal prices could increase by as much as 10 percent.

As we begin a new fiscal year and as many of you, our business clients, are preparing your 2010 operating budgets, we want to end all speculation.

The Postal Service will not increase prices for market dominant products in calendar year 2010.

Simply stated, there will not be a price increase for market dominant products including First-Class Mail, Standard Mail, periodicals, and single-piece Parcel Post. There will be no exigent price increase for these products.

This is the right decision at the right time for the right reason. Promoting the value of mail and encouraging its continued use is essential for jobs, the economy, and the future of both the Postal Service and the mailing industry.

While increasing prices might have generated revenue for the Postal Service in the short term, the long-term effect could drive additional mail out of the system. We want mailers to continue to invest in mail to grow their business, communicate with valued customers, and maintain a strong presence in the marketplace. Changes in pricing for our competitive products — Priority Mail, Express Mail, Parcel Select, and most international products — are under consideration. We expect to announce a decision in November.

We are committed to working with customers to find ways to grow the mail through innovative incentives like the Summer Sale and contract pricing. Mail is the most effective means of communication and advertising and we will continue to work together to increase the value of the mail. Mail is a smart investment for the future.

John E. Potter
Postmaster General

CollectionTechnology.net is a proud presenter of the 2010 Collection Technology Summit. Click here for more details.

Another Red Flags Extension

2009-11-02T14:00:00.000Z

The Federal Trade Commission bumped the enforcement deadline of the Red Flags Rule from November 1, 2009 until June 1, 2010 at the request of Members of Congress.

The Rule requires creditors to establish written, identity-theft-prevention programs that “are designed to detect the warning signs – or 'red flags' – of identity theft in their day-to-day operations," according to the FTC.

The enforcement of this Rule has already been delayed several times, and businesses still continue to express confusion over who the Rule applies to and how to comply with it. The FTC does offer compliance guidance on its site. Read about that here.

For questions regarding this enforcement policy, contact Naomi Lefkovitz or
Pavneet Singh, Bureau of Consumer Protection, 202-326-2252.

Read the FTC's announcement here.

CollectionTechnology.net is a proud presenter of the 2010 Collection Technology Summit. Click here for more details.

Competition to Accurint

2009-10-30T14:16:05.000Z

Anyone out there have any information or recommendations to competitors to Lexis/Accurint for basic phone; address; bankruptcy and deceased records? I appreciate any insight anyone may have.

Dan

Shopping Time: PSC Acquires North Shore Agency Unit

2009-10-29T16:30:00.000Z

It’s always a good time to buy is my personal shopping philosophy. But, for once, my mantra probably has merit.

And in today’s collection acquisition news, PSC Info Group announced it has acquired the data processing, printing and mailing unit of North Shore Agency, Inc., whose parent company is NCO Group, Inc. Pricing details are unavailable for publication.

The agreement has also scored PSC an exclusive, long-term document outsourcing and letter processing agreement with NCO. The partnership will increase PSC’s market share in cable, telecommunications, media, publishing, healthcare and financial services markets, according to Joseph J. Greco, chief executive.

NCO will retain NSA’s debt collection unit.

nTelagent Turns to the Cloud

2009-10-28T14:30:00.000Z

Quick and easy. That’s what users want in their technology roll-outs. But, it’s not always what they get.

However, using cloud computing, nTelagent, Inc. is trying to speed up the interface process between its product [Retail Application] and healthcare providers' hosted systems. Specifically, its new Registration Interface Engine lets healthcare providers adapt nTelegant's Retail Application quicker. [The Retail Application tells healthcare registrars what to say and what actions to take about financial responsibilities at the point-of-service.]

It will still take the Registration Interface Engine “a few short days or less” to work, according to the company.

“When we were developing our Retail Application, a vertical application built on a cloud computing platform, we were guided by the idea that our technology had to easily mesh and ‘talk to’ other systems,” said Earl T. Winter, chairman and chief executive, in a statement. “If it didn’t do that quickly and in a budget-friendly manner, it would be nothing more than another cost burden to healthcare providers. That’s the power of our Registration Interface Engine.”

Read the release here.

Worthy Read: Website Hacking Epidemic Spreads

2009-10-28T14:00:00.000Z

SC Magazine writes:

More than two million more web pages were infected with malware during the third quarter of 2009 compared to the same quarter last year, according to data gathered by web anti-malware vendor Dasient.

From July until September, approximately 640,000 different websites — and a total of 5.8 million pages on those sites — were infected to distribute malware, Dasient found through studying data collected on its malware analysis platform.

Read the story here.

Penalties for online collection violations?

2009-10-28T10:09:01.000Z

Unless you are experienced and know the FDCPA & FCRA make sure to research and double and triple check before communicating with a debtor by email, text or any other online communication tool.

It is undisputable that there is a cost benefit for a collection agency to communicate with debtors via email, the risk is too big. It is not against the FDCPA to communicate via email with debtors, but if you do, you are opening up yourself and your agency to a topic not specifically covered in the current FDCPA and it could end up costing you money and a violation.

Preemptive Collections

2009-10-27T14:00:00.000Z

Targeting would-be delinquents is the name of the game of pre-delinquency calls, which is exactly what Security Service Federal Credit Union is doing.

“We get high contact rates pre-delinquency,” said Nancy O'Malley, J.D., vice president of asset recovery, last week at the Collections & Credit Risk Conference in Las Vegas.

The principal goal of these calls is “exploratory education,” if the customer gets into trouble later, she maintains.

To discover who these future delinquents might be, the credit union purchases a third-party score to determine risk. This score looks at what kind of transactions a consumer is making, and his or her history, like whether the consumer used to never carry a balance and now does. This means they are “probably on a pathway to exhaust their credit” to the point where they can’t pay at all, she said.

Once Security Service determines who these consumers are, they call them and invite them to classes on reducing credit.

“We go into reeducation mode,” said O’Malley. “At this point they aren’t delinquent, so it’s a way to establish a relationship and work with them.”

The aim of this effort is if the potential debtor transforms into a debtor, he or she is more likely to pay the credit union first, before other creditors, as he or she has cultivated a relationship with her company.

To measure whether pre-delinquency calls are worth it, O’Malley said it takes at least six months to ascertain. And for the credit union, results appear positive.

“We think they pay us before they pay others,” she said.

SMS Texts Soar

2009-10-26T21:30:00.000Z

Yes, text messaging debtors is a touchy subject for some and definitely not the norm yet, but what is undeniable is the popularity of consumers sending texts to whomever, a trend which only seems to always be on an upswing.

From MarketCharts.com:

More than 740 billion text messages were sent in the US during the first half of 2009, a figure that breaks down to approximately 4.1 billion messages per day, according to findings from a semi-annual industry survey from CTIA-The Wireless Association.

This number is nearly double the number of texts sent during the same period last year, when 385 billion were reported in H108, the wireless-industry association said.

Last week, Nancy O'Malley, J.D., vice president of asset recovery at Security Service Federal Credit Union, gave text messaging's appeal a shout out on her credit card collections panel at the Collections & Credit Risk Conference in Las Vegas.

"Without exception, when it comes to landlines, we're seeing a significant decrease in contacts," O'Malley said.

Younger consumers, particularly 25 and under, prefer texting, she explains.

"The fact of the matter is the young generation doesn't have a landline," O'Malley said. "The name of the game is to reach them anyway we can."

Another reason why a delinquent might prefer a text message? It's more of a comfortable channel, as it removes any fear of what a collector might say to a delinquent, she said.

Mind Games

2009-10-26T13:30:00.000Z

A person's decisions are often influenced by how easily vivid examples come to mind around a topic, said Seth Carter, vice president of consumer psychology and collection sciences at Altisource Portfolio Solutions, S.A, parent company of Nationwide Credit, Inc, at last week’s Collections & Credit Risk conference.

Hence the importance of what collectors say on their phone calls to debtors to ensure their "vivid examples" of collection calls aren't terrible. Carter, for one, recommends a variation of the following statement to achieve better collection results:

“Borrower, I understand your concerns. This year alone our programs have helped over 77,000 homeowners in similar situations to yours save their homes from foreclosure. That’s equal to over a quarter of the entire population of Pittsburg.”

Using psychology to yield better financial results is not just limited to calls, but should also apply to letter campaigns.

Altisource, for one, used to send an initial demand letter, followed by a specific offer, followed by a final demand letter, but after focusing in on psychology more than a year ago, it expanded its letter campaign to include: initial demand, representative letter that includes testimonials, scarcity letter that explains there is a limited time discount that only so many borrowers received, chased by a specific offer, and ending with a final demand letter.

And to know what approach works best for one’s shop, Carter suggests identifying best practices by interviewing best collectors, etc. Once the most effective communication strategy is determined, he suggests quantifying the outcome, and to constantly evaluate the strategy over and over again.

“Psychologically does work,” said Carter.

Worthy Read: Small Businesses May Get Exemption from ID Theft Rules

2009-10-23T17:30:00.000Z

The Red Flags Rule, which tackles identity theft issues, has already gotten pushed back a number of times by the FTC, and now, it appears it may not even apply to certain companies.

From SC Magazine:

The U.S. House of Representatives this week unanimously passed legislation that would exempt certain small organizations from complying with the Red Flags Rules.

The rules, developed in accordance with the Fair and Accurate Credit Transactions Act of 2003 (FACTA), require financial institutions and other organizations classified as “creditors” to develop programs to identify, detect and respond to indications of identity theft. A bill passed this week would amend FACTA and exclude health care, accounting and legal practices with 20 or fewer employees from having to comply with the regulations, set to be enforced starting next month.

Read the entire article by Angela Moscaritolo here.

Read more about the Rule here and here.

Free Litigant Scrub from WebRecon

2009-10-23T14:30:00.000Z

Free services are always nice, but in a recession, they have the potential to truly buoy business. And collection firms are getting one such perk starting today.

WebRecon, LLC, announced it is attempting to scrub every collection agency for litigants for free.

“The gesture is attempting to be very broad and big for the industry to help a lot of [agencies] weed out the troublemakers,” says Jack Gordon, chief executive officer.

Depending on demand, an agency should get its files scrubbed the same day as submitting its files. The promotion allows up to 5 million consumers scrubbed per company and will run through the end of the year.

Prevention of lawsuits is the main goal of this service.

“This tool gives them a comfort level to call on accounts,” says Gordon, explaining lawsuits are so expensive and time-consuming. “Every lawsuit is a kick in the teeth…We all have better things to do.”

To obtain this service, an agency simply signs up for a newsletter and signs a liability waivor. To get scrubbed, go to http://www.webrecon.com/free/

CFPA Cleared First Legislation Round

2009-10-22T18:00:00.000Z

From Bloomberg:

A proposed U.S. Consumer Financial Protection Agency cleared its first legislative test, overcoming banking industry and Republican opposition to win approval in the House Financial Services Committee.

The panel voted 39-29 today to set up the agency to shield consumers from lending abuses. The measure exempts community banks from enforcement and limits states in imposing tougher rules. A similar bill hasn’t been introduced in the Senate.

Read the article by Alison Vekshin here.

Simplifying Data Exchanges

2009-10-22T13:30:00.000Z

DataRose, LLC wants to make communication easy between vendors and their clients. Late last week, the company officially announced The EqualXchange Network, which manages the data exchange between data and service providers and the creditors, agencies and law firms they serve.

The Network works because of data mapping and translation technology EqX, which translates the sender’s data into the receiver’s data format. According to DataRose, this makes communication seamless between software systems.

“This is an industry that relies heavily on the ability of all parties across the entire value chain to exchange data,” said Jonathan Cleary, chief executive officer, in a statement. “Doing so has historically been a challenge, resulting in inefficiencies and higher costs. The EqualXchange Network gives the industry 'plug-and-play,' seamless, secure data exchange capability. Now, it no longer matters that everyone uses different software.”

Congress May Ask New Regulator to Monitor Collectors

2009-10-22T12:21:29.000Z

From Dow Jones:

A congressional report detailing abuses by debt collectors demonstrates the need for a new consumer financial protection agency, said Sen. Carl Levin, D-Mich., Wednesday.

The Government Accountability Office report comes as the House is working out details of the agency, proposed as part of the Obama administration's regulatory overhaul. The House Financial Services Committee is expected to vote on the bill Thursday, while the Senate hasn't yet taken up the proposal.

The GAO, the investigative arm of Congress, found lax enforcement against abusive practices by debt collectors regarding credit cards and recommended that the 1977 Fair Debt Collection Practices Act be updated to take into account new technologies and debt collection practices.

Levin said Congress should go beyond updating debt collection legislation to create the new consumer agency.

"A Consumer Financial Protection Agency would have the authority to modernize consumer protections against unfair debt collection practices, monitor compliance, and take enforcement action to stop abusive debt collectors," he said in a statement.

FDCPA and Other Consumer Rights Lawsuit Statistics, October 1-15, 2009

2009-10-21T19:44:24.000Z

FDCPA and Other Consumer Rights Lawsuit Statistics, October 1-15, 2009

Grand Rapids, MI (October 21, 2009) – The following statistics are provided to the ARM industry courtesy of WebRecon LLC.

There were about 468 lawsuits filed under consumer statutes in the first half of October. Here is an approximate breakdown:

• 356 Fair Debt Collection Practices Act
• 55 Fair Credit Reporting Act
• 5 Telephone Consumer Protection Act
• 23 Truth In Lending Act
• 1 Consumer Legal Remedies Act
• 1 California Unfair Competition Law
• Connecticut Unfair Trade Practices Act
• 1 Equal Credit Opportunity Act
• 1 Electronic Fund Transfers Act
• 4 Employee Retirement Income Security Act
• 1 Florida Deceptive and Unfair Trade Practices Act
• 3 Federal Trade Commission Act
• 1 Home Ownership And Equity Protection Act
• 2 Illinois Consumer Fraud & Deceptive Business Practices Act
• 1 Massachusetts Consumer Credit Code
• 2 Maryland Consumer Protection Act
• 1 Michigan Consumer Protection Act
• 2 Magnuson-Moss Warranty Act
• 1 Ohio Consumer Sales Practices Act
• 1 Pennsylvania Unfair Trade Practices and Consumer Protection Law
• 10 Real Estate Settlement Procedures Act
• 3 Rosenthal Fair Debt Collection Practices Act
• 2 Racketeer Influenced and Corrupt Organizations Act
• 1 Securities Exchange Act
• 1 Unfair Business Practices
• 7 Unjust Enrichment
• 1 Video Privacy Protection Act
• 3 Washington Consumer Protection Act
• 2 West Virginia Consumer Credit & Protection Act

Summary:
• Of those cases, there were about 520 unique plaintiffs (including multiple plaintiffs in one suit).
• Of those plaintiffs, about 136 had sued under consumer statutes before.
• Combined, those 136 plaintiffs have filed about 915 lawsuits since 2001
• Actions were filed in 106 different US District Court branches.
• About 519 different collection firms and creditors were sued.

The top courts where lawsuits were filed:
• 41 Lawsuits: Illinois Northern District Court - Chicago
• 26 Lawsuits: California Central District Court - Los Angeles
• 19 Lawsuits: California Southern District Court - San Diego
• 18 Lawsuits: Georgia Northern District Court - Atlanta
• 15 Lawsuits: California Eastern District Court - Sacramento
• 14 Lawsuits: Pennsylvania Eastern District Court - Philadelphia
• 14 Lawsuits: Minnesota District Court - DMN
• 13 Lawsuits: New York Western District Court - Buffalo
• 13 Lawsuits: Colorado District Court - Denver
• 11 Lawsuits: Virginia Eastern District Court - Richmond

The most active consumer attorneys were:
• Representing 28 Consumers: George Thomas Martin, III
• Representing 22 Consumers: Nicholas J. Bontrager
• Representing 17 Consumers: Brent F. Vullings
• Representing 14 Consumers: Michael S Agruss
• Representing 11 Consumers: David J. Philipps
• Representing 9 Consumers: Peter Cozmyk
• Representing 9 Consumers: Matthew William Kiverts
• Representing 9 Consumers: Ryan Scott Lee
• Representing 8 Consumers: Kenneth R. Hiller
• Representing 8 Consumers: Daniel A. Edelman

Statistics Year to Date:

7566 total lawsuits for 2009:
• 6225 FDCPA
• 959 FCRA
• 21 TCPA

Number of unique Plaintiffs: 7490 (including multiple plaintiffs in one suit)

The most active consumer attorneys of the year:
• Representing 360 Consumers: Ryan Scott Lee
• Representing 256 Consumers: Nicholas J. Bontrager
• Representing 195 Consumers: Kenneth R. Hiller
• Representing 182 Consumers: Todd Michael Friedman
• Representing 167 Consumers: Daniel A. Edelman

About WebRecon LLC: Creditors and collection firms use WebRecon’s services to easily segregate predictably litigious consumers from their databases. A significant percentage of consumer litigation is initiated by the same consumers over and over again, and screening them out of the general population can reduce lawsuits by as much as a third.

For more information, please contact:

Jack Gordon, CEO
WebRecon LLC, The FDCPA Litigant Alert
Web: www.WebRecon.com
Email: admin@webrecon.net
Phone: (616) 682-5327

A Guide to Debt Buying and Selling on CollectionTechnology.net

2009-10-21T14:30:00.000Z

We've noticed -- pleasantly, I might add -- that CollectionTechnology.net members are using the site to seek out and/or sell debt portfolios. This trend points to the power of our social network, and we are pleased to facilitate economic gains for our members.

However, these efforts to buy and sell portfolios have been scattershot across CollectionTechnology.net. We've seen postings on portfolios in blogs, forums, groups, and on member pages. For a buyer looking to find a portfolio, it can be a challenge simply to spot all the opportunities on CollectionTechnology.net.

We want to change that. We ask that you post your sale or purchasing information either in a forum or in the Debt Buyers of America group. When you post a portfolio-related item to a forum, choose the Portfolio Sales category. By doing so, your listing will automatically appear in the Debt Buyers of America group, where we hope to centralize such activity. We'll also monitor the entire CollectionTechnology.net for portfolio-related posts and we'll tag forums accordingly.

Concentrating the portfolio sales activities in one location will help not just buyers and sellers, but the CollectionTechnology.net community as a whole, by keeping such posts where only interested parties need to see them. And perhaps some additional deals might get done, too.

Thanks for your understanding and keep on actively using CollectionTechnology.net.

Sincerely yours,

JJ Hornblass
Executive Editor & Publisher

NCO Plans Call Center in West Virginia

2009-10-21T12:17:32.000Z

NCO Group is planning a 150-seat call center in Charleston, W.V., according to published reports.

Initially, the center will open with 35 employees handling customer service calls for Mountaineer Gas Co. Another 115 reps will then be hired to handle calls from other NCO accounts. The remaining 15 employees will work in other capacities. It is unclear whether NCO will use the new call center to collect debts, according to the report. Mountaineer Gas, however, has an existing contracts with other collection agencies to manage its accounts receivables.

The call center is expected to open in January.

NCO has begun advertising jobs in the area, offering $9 per hour.