Sat.Jan 04, 2025 - Fri.Jan 10, 2025

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Credit Card Debt Keeps Creeping Upward Toward Record Levels

Account Recovery

The credit card debt picture for consumers is getting uglier and uglier by the day. A pair of reports released this week paint a picture that is increasingly bleak for consumers, who are falling further and further behind on their credit card payments and paying less and less of their debts off every month. Nearly half (48%) of credit cardholders are carrying a balance month-to-month, according to Bankrate’s November 2024 data.

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How Active Listening Can Turn Difficult Debt Collection Calls Into Collaborative Solutions

American Profit Recovery

Active listening is something our professional debt collectors practice and implement daily here. In fact, we would go as far as to say that it is one of the foundations of how we operate. In all aspects of life and business, listening is one of the most critical skills we can master. And as a collection agency working with small businesses and large organizations, it is a must for us to carry out our mission.

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Top A/R & Invoice Management Tips for B2B Companies

Enterprise Recovery

As accounts receivable (A/R) become delinquent, your business expenses could fall behind. With every late-paying client, cash flow for payroll, rent, or other vendors falls short, threatening your company's bottom line and growth. The effectiveness of your A/R department may be one of the most important measurements to determine the success of your business.

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CFPB Finalizes Rule to Remove Medical Bills from Credit Reports

Consumer Finance

Today, the Consumer Financial Protection Bureau (CFPB) finalized a rule to ban the inclusion of medical bills on credit reports used by lenders and prohibit lenders from using medical information in their lending decisions.

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Outsourcing Vs. In-House: The Ultimate Battle For Better Collections

Speaker: Susan Richards

Your past-due accounts are growing, cash flow is tightening, and the pressure is on. The big question: Do you handle the collections internally or outsource to experts? Both strategies come with advantages and risks - but which one delivers the best impact for your business? In this session we’ll dive deep into the in-house vs. outsourcing debate, examining cost-effectiveness, efficiency, compliance risks, and overall recovery success rates.

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CFPB Releases Final Medical Debt Credit Reporting Rule

Account Recovery

The Consumer Financial Protection Bureau this morning announced the release of its final rule prohibiting the inclusion of medical debt on consumer credit reports. This rule is expected to remove $49 billion in medical debt from credit reports, impacting approximately 15 million consumers. Additionally, it bars lenders from considering medical information in credit decisions, addressing concerns about the fairness and accuracy of medical debt in credit assessments.

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Omnichannel vs. Multi-channel Communications in Debt Collection: What’s the Difference and Why Does It Matter?

True Accord

The terms “omnichannel” and “multi-channel” are frequently used to describe consumer outreach strategies, and while they may sound similar, the differences between these approaches are crucial, especially for effective debt collection. Lets break down the key differences between omnichannel and multi-channel communications, particularly in the context of debt collection, and why these distinctions matter more than ever.

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CFPB Sues Experian for Conducting Sham Investigations of Consumer Report Errors

Consumer Finance

The CFPB sued Experian, the nationwide consumer reporting agency, for unlawfully failing to properly investigate consumer disputes.

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CFPB Sues Experian Over Alleged Violations in Consumer Dispute Investigations

Account Recovery

The Consumer Financial Protection Bureau yesterday announced it has filed a lawsuit against Experian, one of the nation’s largest credit reporting agencies, accusing it of systemic failures in handling consumer disputes. The suit could have widespread implications for credit reporting practices, debt collection, and consumer financial protections.

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What Is A Letter Before Action? Our Guide

Hudson Weir

Businesses rely on steady cash flow to operate smoothly, and unpaid invoices can create major hurdles With this in mind, you might wonder: what is a letter before action and how can it help recover debts? UK small businesses face an average of 22,000 in overdue payments, translating to an economic loss of 2.5 billion annually. In fact, customers paid nearly 50% of small businesses invoices late between June 2023 and June 2024, according to Apollo.

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Cash Flow Secrets Every Upskilled CPA Should Know

Speaker: Debra L. Robinson

CPAs know the drill: taxes, compliance, rinse, repeat. But what about the sneaky cash flow that’s quietly messing with your organization’s success? It’s time to step into the spotlight and expose the “dirty little secrets” of cash flow to fuel strategic growth. By upskilling your accounting practices and shifting focus from tax compliance to the strategic movement of money, you can transform your role from reactive accountant to proactive financial strategist.

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PDCflow Recognized with the 2024 Best Customer Support Badge

PDC Flow

We are thrilled to announce PDCflow has been recognized with the Best Customer Support Badge by Software Advice , a leading software recommendation engine that helps businesses find the right software. This Best of badges program is an independent assessment that evaluates user reviews to help buyers identify highest-rated software companies in specific categories that offer the most popular solutions.

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CFPB Sues Vanderbilt for Setting Borrowers Up to Fail in Manufactured Home Loans

Consumer Finance

The CFPB sued Vanderbilt Mortgage & Finance for setting families up to fail when they borrowed money to buy a manufactured home.

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Judge Grants MTD in FDCPA Case Over ID Theft

Account Recovery

A District Court judge in Illinois has granted a defendant’s motion to dismiss a Fair Debt Collection Practices Act case, ruling the plaintiff lacked standing after alleging violations related to a disputed debt originating from identity theft. The background: The case stemmed from a credit card account fraudulently opened in the plaintiff’s name with a retailers branded credit card.

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How to Pay Off Credit Card Debt Fast: 9 Smart Strategies

Credit Corp

While many people have at least some credit card debt, once it gets too high, it can be overwhelming and anxiety-inducing. Recent credit card debt statistics show the average American household has over $9,000 in credit card debt. This can harm your credit score by increasing your utilization rate. Learning how to pay off credit card debt can help improve your credit score and potentially reduce some of your financial stress.

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Top 3 Banking Secrets to Stay Relevant with Gen Z Consumers

Speaker: Brian Muse-McKenney, Chief Revenue Officer & Matt Simester, Cards and Payments Expert

In today’s world of social media, dating apps, and remote work, businesses risk becoming irrelevant (or getting "ghosted") if they fail to meet the evolving needs of Gen Z consumers. Credit cards with flexible payment options, especially for young adults with little-to-no credit history, are a particularly important and valuable solution for this generation.

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How Does an Increase in Minimum Wage Affect Your Debt Collection Case?

FFGN COLLECT NY

With the new year comes an increase in the minimum wage in New York. The new rate depends on the region where the employee works. As of January 1, 2025, the state minimum wage increased by $0.50. In many parts of New York, the minimum wage is now $16.50, more than double the $7.50 federal minimum wage. Will the new minimum wage affect debt collection?

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CFPB Seeks Input on Digital Payment Privacy and Consumer Protections

Consumer Finance

Today, the CFPB announced that it is seeking public input on strengthening privacy protections and preventing harmful surveillance in digital payments, particularly those offered through large technology platforms.

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Collector Facing FDCPA Class-Action for Different Payment Portal Addresses in Different Letters

Account Recovery

EDITORS NOTE: This article is part of a series that is sponsored by WebRecon. WebRecon identifies serial plaintiffs lurking in your database BEFORE you contact them and expose yourself to a likely lawsuit. Protect your company from as many as one in three new consumer lawsuits by scrubbing your consumers through WebRecon first. Want to learn more? Call (855) WEB-RECON or email admin@webrecon.net today!

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Does Closing a Credit Card Affect Your Credit Score?

Credit Corp

Closing a credit card can hurt your credit score by shortening the average length of your credit history. The older the credit card is, the more its closure can hurt your credit score. If youre thinking about closing a credit card you havent used for years, you might want to reconsider. Closing a credit card can actually lower your credit score by potentially reducing the length of your credit history, especially if youve had the account for a long time.

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How Collection Agencies Minimize Effort and Maximize Results with the Right Software

Navigating collections in the dynamic financial landscape presents multifaceted challenges. Organizations face pressures to maintain standards alongside software challenges like regulatory adaptations, data integration, security, workflow optimization, and automation. Finding the right software can save time and money. BEAM offers a comprehensive solution with specialized modules to streamline debt collection effortlessly.

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How Doctors Are Pushing Medical Credit Cards on Patients

Collection Industry News

David Zhao signed up for a medical credit card while supine in a dentists chair, fluoride trays in his mouth. In December 2018, the consumer lawyer from Los Angeles went for a routine dentist appointment at Western Dental in San Mateo, in the suburbs of Northern California. Zhao was told by the dentist that his gums were receding. He needed a special mouthguard or hed have to have surgery, he recalls being told.

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CFPB Sues Experian for Sham Investigations of Credit Report Errors

Consumer Finance

The CFPB sued Experian, the nationwide consumer reporting agency, for unlawfully failing to properly investigate consumer disputes.

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Summing Up 2024 in One Word

Account Recovery

Ask a group of people to sum something up in one word and it paints an interesting picture. The words used by a handful of professionals from across the credit and collection industry to describe 2024 paint a picture of hope, of optimism, of an excitement for what the future is going to bring. Check out what has these executives so stoked about what happened in 2024 and what it will mean in 2025.

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120+ Things to Do For Free to Save Money

Credit Corp

When you’re trying to build your savings, you might focus on only purchasing the necessities and not leaving much room for fun. But cutting down your entertainment budget doesn’t have to be boring. Below, we’ve compiled a list of 120+ things to do for free to keep you entertained while saving money. That way, you can enjoy your life without breaking the bank.

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From Complexity to Clarity: Strategies for Effective Compliance and Security Measures

Speaker: Erika R. Bales, Esq.

When we talk about “compliance and security," most companies want to ensure that steps are being taken to protect what they value most – people, data, real or personal property, intellectual property, digital assets, or any other number of other things - and it’s more important than ever that safeguards are in place. Let’s step back and focus on the idea that no matter how complicated the compliance and security regime, it should be able to be distilled down to a checklist.

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The Power of Amortization for Small Businesses: Unlocking Financial Stability

Burt and Associates

Financial health is the backbone of long-term success for small business owners. While revenue growth and customer acquisition are often the focus, effective debt management is equally critical. One tool that stands out in managing debts and ensuring steady cash flow is amortization —a concept that can make seemingly insurmountable debts manageable and predictable.

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CFPB Approves Application from Financial Data Exchange to Issue Standards for Open Banking

Consumer Finance

The CFPB issued an order recognizing Financial Data Exchange, Inc. (FDX) as a standard setting body under the CFPBs Personal Financial Data Rights rule.

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State Regulators Fine Mortgage Servicer $20 Million Over Cybersecurity Violations Resulting from Data Breach

Account Recovery

Fifty-three state financial regulatory agencies have imposed a $20 million penalty on Bayview Asset Management LLC and its affiliates Lakeview Loan Servicing, Community Loan Servicing, and Pingora Holdings for inadequate cybersecurity practices and delayed compliance with state regulators. The coordinated enforcement action follows a 2021 data breach impacting 5.8 million consumers.

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Should I Pay Off My Credit Card in Full or Leave a Small Balance? 

Credit Corp

Understanding how credit works can be confusing, which is why many people ask, Should I pay off my credit card in full each month? It becomes even more confusing because some people recommend carrying a balance from month to month to boost your score. Making mistakes regarding how you use your credit cards can lower your score, raise your interest rates, and make it difficult to get a loan.

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The New Way CPAs are Delivering Value: Aligning Automation with Client Success

Speaker: Mark Stovel

When it comes to automating, many firms focus on finding the latest tech, believing that efficiency is something achieved through new tools. Yet true efficiency is achieved by delivering real value to clients, not merely by upgraded systems. Without a clear approach, no level of automation can overcome the complexities of serving every client’s needs.