Report - Debt Collection and Debt Buying

A report by the Center for Responsible Lending on the history and current state of the debt collection by debt buying industry. An important document for those looking to understand the industry and its impact on consumers.

State AG-CFPB Settlement with Chase Bank Over Credit Card Collections

In 2015, the CFPB, 47 state attorneys general and the District of Columbia settled with Chase Bank for $136 million over their credit card collection practices. The investigation found that Chase used robo-signed documents as evidence in lawsuits against consumers. In addition, Chase often sold accounts to other debt collecting agencies that were already discharged or inaccurate.

CFPB Proposal to Overhaul Debt Collection Market

The Consumer Financial Protection Bureau has offered new rules to eliminate the often problematic practices carried out by the debt collection industry. The following CFPB resources includes a report detailing the industry and the scope of the proposals under consideration, including rules pertaining to collection practices.

N.Y. Times Report on the Consumer Debt Collection

In this 2014 report, N.Y. Times reporter Jake Halpern delves into the often unknown and secretive world of the debt-buying industry. According to Halpern, the industry has seen astronomical growth.

From 2006 to 2009, for example, the nation’s top nine debt buyers purchased almost 90 million consumer accounts with more than $140 billion in ‘face value.’ And they bought at a steep discount. On average, they paid just 4.5 cents on the dollar. These debt buyers collect what they can and then sell the remaining accounts to other buyers, and so on. Those who trade in such debt call it ‘paper.’
— Jake Halpern

Minnesota AG Resource on Debt Buyers

A comprehensive resource for consumers on the debt buying industry. Created by the Minnesota Attorney General's office, the guide provides a definition of a "debt-buyer," a brief history of the debt-buying industry, and rights of consumers when pursued by debt collectors.