A new report from Lexis Nexis Lexis Nexis just published an important and interesting document about synthetic identity fraud and its impact on organizations, including the signs of synthetic identity fraud and the challenges in detecting it. haracteristics of synthetic farms and houses, as mentioned in the document, include: According…
The article “Early impacts of removing low-balance medical collections” by the CFPB Office of Research discusses the effects of changes made by the three nationwide credit reporting companies in 2022 and 2023 regarding medical collections on consumer credit reports. These companies committed to removing medical collections that were paid, less…
A Joint Effort by UK Regulators In a joint letter published on 18th March 2024, the Financial Conduct Authority (FCA), Ofgem, Ofwat, and Ofcom have outlined their shared expectations for firms in the financial services, water, electricity and gas, and telecoms sectors regarding debt collection practices. The regulators emphasize…
Facing Recovery Rates at Historic Lows The American auto lending industry is facing a perfect storm. A combination of economic pressures and logistical hurdles are creating a nightmare scenario for lenders struggling to recoup losses on defaulted loans. The Culprits: The Result: Recovery rates, the percentage of the loan amount…
Grupago Secures $4.3M Seed Funding to Transform SMB Credit Landscape in Latin America with AI and Community-Driven Solutions Grupago, a fintech startup focused on providing digital microcredit to small and medium-sized businesses (SMBs) in Latin America, announced a $4.3 million seed funding round led by Deciens Capital, with participation from…
On 15.01.2024, the Financial Conduct Authority (FCA) published a letter outlining the harms and risks associated with loan-based peer-to-peer lending platforms and the FCA’s strategy to address them. The document is a letter from the FCA (Financial Conduct Authority) outlining their expectations and strategies for Loan-based Peer-to-Peer Lending platforms. …
Navigating Rising Interest Rates with Resilience In 2023, the financial dynamics within the United States painted a complex picture, marked by the resilience of consumer credit amidst the backdrop of rising interest rates. This period, characterized by its unpredictability, witnessed consumers, policymakers, and banking professionals navigating an environment where traditional…
The Consumer Financial Protection Bureau (CFPB) announced a significant regulatory change on March 5, 2024, aimed at reducing excessive credit card late fees, which have been a financial burden on American families. The finalized rule effectively lowers the typical late fee from $32 to $8, addressing a loophole that has…
Navigating the Maze of Consumer Misunderstanding In the rapidly evolving landscape of consumer finance, “Buy Now, Pay Later” (BNPL) schemes have surged in popularity, offering the allure of immediate gratification with deferred payment obligations. This innovative payment option has democratized access to goods and services for consumers worldwide, enabling purchases…
As the UK economy continues to navigate the aftermath of the COVID-19 pandemic, credit and collections managers are facing a complex landscape shaped by shifting labor markets, changing wage dynamics, and evolving consumer spending patterns. The recent developments in inflation and wage growth have brought some relief to households, but…
This summary delves into the insights and key points from a Morgan Stanley article published on 15.09.2023 discussing the burgeoning field of private credit, and that, in my opinion, did not receive sufficient echo. The article outlines the significant growth of this market, which is expected to reach $2.3 trillion…
Wells Fargo published an important article on the rise of consumer credit in the US on January 10th, 2024. The article delves into the growing trend of consumer credit usage in the United States, emphasizing a significant milestone where outstanding consumer credit exceeded $5 trillion in November. This increase is…
For decades, the debt collection industry in Singapore operated with minimal regulation, leading to concerns about predatory practices and vulnerable debtors being harassed. However, a turning point arrived in 2022 with the passing of the Debt Collection Act (DCA). This landmark legislation, which came into effect on 1 December 2023,…
Implications of New York’s decision to remove medical debt from credit reports, with a focus on the potential impact on creditors in the US. Immediate implications for New York creditors: Potential broader implications for US creditors:
Here’s a breakdown of some key potential effects: Increased transparency and fairness: Focus on customer vulnerability: Impact on business practices: It’s important to note that the full impact of the FCA Consumer Duty on BNPL firms is still to be seen. However, it is clear that the new regulations will…
The TransUnion Consumer Pulse Study Q4 2023 offers a multifaceted view of UK consumer sentiment amidst the ongoing cost of living crisis. While presenting glimpses of cautious optimism, it also unveils the stark realities of financial strain and diverse risk landscapes across income brackets and generations. Let’s delve deeper into…