Last week, The Wall Street Journal published an article (may be behind the paywall) entitled “That Offer to Make You Debt-Free? It Can Make You Worse Off.” The piece detailed the unethical practices that the debt-settlement industry uses to “get the consumer’s guard down.” These practices include offering a loan via pre-screened mailer without the intention of actually extending credit. The loan offers were used to entice consumers to sign up for a costly debt settlement program that would ultimately harm the consumer’s financial well-being.
Consumers are often told by debt settlement companies to stop paying bills altogether while the company attempts to negotiate a reduction in consumers’ debt. Even if the debt is reduced, the fees and penalties that are accumulated from non-payment, combined with debt-settlement company fees of as much as 25%, can make the process more expensive than bankruptcy and certainly more expensive than working directly with a creditor.
AFSA, consumer-advocacy organizations, and federal regulators, such as the Consumer Financial Protection Bureau and the Federal Trade Commission, have expressed concerns about the schemes presented as solutions by debt settlement companies. AFSA continues to work with and educate policymakers on the need for additional rules of the road in the debt settlement space.
WSJ article outlines danger of debt “settlement” companies
Aug 15, 2019
Last week, The Wall Street Journal published an article (may be behind the paywall) entitled “That Offer to Make You Debt-Free? It Can Make You Worse Off.” The piece detailed the unethical practices that the debt-settlement … Read the rest
AFSA SGA hits the road
Aug 14, 2019
Last week, AFSA State Government Affairs attended the American Association of Residential Mortgage Regulators (AARMR) 30th Annual Regulatory Conference in San Diego, California. The annual conference provides an opportunity for industry… Read the rest
Get a Jumpstart on the Future of Lending
Aug 14, 2019
Join us August 22 at 2 p.m. ET for “Future of Lending: Innovations Driving Credit Decisions,” presented by Experian. Presenter Amy Graybill, VP, USIS Strategic Initiatives will walk attendees through advancements in data … Read the rest
Head back to school with AFSAU!
Aug 13, 2019
Are you looking to take your compliance training to the next level? Have a fresh compliance training program but need a bit more substance? AFSAU is exactly what you need and it’s more affordable than ever.
Check out a small selection … Read the rest
CFPB Releases Outcomes from Use of Alternative Data in Credit Underwriting
Aug 12, 2019
The Consumer Financial Protection Bureau (CFPB) has released information from its review of alternative data underwriting by Upstart Network, Inc. (Upstart). Upstart received a No-Action Letter from the CFPB in 2017 that allowed the company… Read the rest
AFSA Attends NCSL Legislative Update
Aug 09, 2019
This week, AFSA’s State Government Affairs team attended the National Conference of State Legislatures (NCSL) meeting in Nashville, Tenn. With over 6,000 attendees, NCSL’s annual legislative summit is the largest gathering… Read the rest
Don’t Get Burned by Missing Out on the AFSA Summer Sale
Aug 08, 2019
Become a Business Partner Member today and start generating leads and winning customers in the consumer-finance industry. Enjoy a single rate for 2019 and 2020, plus a bonus worth $1,300.
Key Benefits of Business Partner Membership include:… Read the rest
AFSA Requests FTC Change Safeguards Rule
Aug 07, 2019
AFSA submitted a letter on August 2 to the Federal Trade Commission (FTC) seeking changes to its proposed rule amending the Standards for Safeguarding Customer Information before it is implemented.
Known as the Safeguards Rule, AFSA laid… Read the rest
Approach Your Business Path with Purpose
Aug 05, 2019
Everything we do in business, from building strong teams or expanding operations to marketing to our communities or meeting compliance requirements, should hold greater meaning than simply business as usual.
From a 35,000-foot perspective,… Read the rest
CFPB Extends Comment Period on Debt Collection Proposal
Aug 02, 2019
The Consumer Financial Protection Bureau (CFPB) today announced that it would extend the comment period for the Notice of Proposed Rule Making implementing the Fair Debt Collections Practices Act (FDCPA).
The extension was granted in response… Read the rest