Collections & Credit Risk articles from May 2007

Collections & Credit Risk archives from May 2007

Touchstones in a World of Uncertainty.
May 1, 2007... By the time you read this, roughly a third of the year will be over and hopefully you'll have a better idea how all the uncertainty that was clouding the economy early in the year will play out. This issue endeavors to assist with that task,...

A Primer on Subprime: Can Lenders and Collectors Manage Risk, Clean up the Books?
May 1, 2007... The fallout from the financial losses experienced by lenders with huge tranches of subprime mortgage loans in default can serve as a lesson for lenders, of course, but also for those who work with creditors to collect delinquent accounts. ...

Mortgage Loan Definitions.
May 1, 2007... * AMORTIZATION: The paying off of debt in regular installments over a period of time. * CONVENTIONAL MORTGAGES feature a fixed interest rate - typically lower than non- or subprime rates - amortized over the entire term of the loan,...

Talk of Mortgage Fallout Dominates Annual Collections & Credit Risk Show.
May 1, 2007... Talk of looming troubles in the sub-prime mortgage market and the possible fallout on the consumer debt market dominated discussions at March's 11th annual National Collections and Credit Risk conference, in Boca Raton, Fla. Economists and...

What NCCR Speakers Were Saying.(National Collections and Credit Risk)(Brief article)
May 1, 2007... The credit environment over the past year "is the best I have seen in the past 35 years." -Tom Brown, consumer lending risk director for Chase Card Services "Everything that goes up must come down." -David Nole, chief risk officer,...

ACA Finds Silver Lining in FTC Report, Explores Complaint Resolution Project.
May 1, 2007... Collectors topped the Federal Trade Commission's complaint list again in 2006 but industry trade association ACA International is taking heart from news that the rate at which complaints are increasing year-over-year is slowing dramatically....

The Collector Complaint Picture.
May 1, 2007... Collector Complaints Year-to-Year Change Year Filed with FTC in Complaints Filed 2000 13,962 N/A 2001 15,819 13.30% 2002 25,185 59.21% ...

Getting Connected: Web-based applications are entering the mainstream of the collections business as lenders and agencies strive to increase productivity while holding the line on costs.
May 1, 2007... Credigy Solutions Inc. wanted to improve agent productivity by using agents in its two call center during a single campaign and allowing supervisors in either call center to monitor agent performance in real-time. The Suwannee, Ga.-based...

Serving Up Self-Service.(self-service applications through the Web or mobile phones usage)
May 1, 2007... As Web-based applications move into the collection mainstream, their adoption is making it easier for software developers to create applications that extend the communications and self-service functionality to a host of new operating platforms,...

The Drive for Auto Collections: Will auto loan defaults increase because of the subprime mortgage fiasco? While the market tries to answer that question, auto loans provide debt-buying and collection opportunities to those who know the market.
May 1, 2007... With the subprime mortgage market tanking, can auto loans to the subprime sector be far behind? And once subprime vehicle loans go, isn't it likely troubles will spread to other segments of auto lending? Does that mean collectors should be...

Sector Overview: The Auto Debt Market.
May 1, 2007... THE MAJOR LENDERS... Ford Motor Credit General Motors Acceptance Corp. J.P. Morgan Chase Toyota Motor Credit Corp. DaimlerChrysler Financial Services American Honda Finance Corp. Wells Fargo Financial Acceptance...

Great Burden: Britain's personal debt is increasing by [pounds sterling]1 million ($1.9 million) every four minutes. That spells growth opportunities for domestic and foreign collection agencies and debt buyers.
May 1, 2007... Almost 300 Britons are becoming insolvent each day, according to Richard Talbot, author of a recent report from Credit Action, a national educational non-profit in the United Kingdom. Local and national newspapers have run screaming headlines...

U.K. Debt Crisis - Salient Statistics.
May 1, 2007... As of January 2007 / Top 5 figures in billions of pounds % change [pounds sterling] from Jan.'06 ...

Lenders Become Target of Politicos.
May 1, 2007... A number of card issuers used to reject a high proportion of all card applications but now, "practically everybody is waved through," says Kevin Still, senior vice president of Credit Professionals Ltd., a credit management services provider....

Will Door Knockers Go the Way of the Ice Man?(Brief article)
May 1, 2007... One collection practice that has faded into the American past but still exists in the United Kingdom is door-to-door collections by what is called a field agent, also known as a door knocker. Field agents are typically employed as a last...

Discover's Collection Point Man: Jim Panzarino emphasizes customer service, technology and constant evaluation as he oversees risk management and collections at Discover.
May 1, 2007... The main edifice on Discover Financial Services' idyllic suburban Chicago campus has a rather distinctive dome painted a rather distinctive color - money green. Indeed, the entire building, from the windows to the marble in the atrium under the...

Discover vs. The Industry.
May 1, 2007... Net Charge- 30-day 90-day Period Ending off rate delinquencies delinquencies Discover 28-Feb-07 4.05 3.45 1.69 Moody's Index 30-Jan-07 4.31 3.91...

Medical Debt Heavy Hitters: These three companies helped create the healthcare debt market. They can teach new market players important lessons.
May 1, 2007... The medical debt market is still young enough that 10-year-old companies are not only veterans but savvy insiders who can teach new entrants some important tricks of the trade. The three healthcare debt-buying heavy hitters profiled here...

A Break-Out Year for HealthCare Debt? Many Think So.
May 1, 2007... Is 2007 the year that the healthcare debt market earns its reputation as the hot new niche in the debt-buying world? It may be, according to veteran buyers who have been watching the market since it opened about a decade ago. At the end of...

Sorting Out the Self-Pay Puzzle: Being able to determine which self-pay accounts really can pay can mean millions in additional income for cash-strapped hospitals. Here's how some have done it.
May 1, 2007... Collection challenges are on the rise in healthcare, in large part because patient responsibility after insurance, including co-payments and deductibles, has grown significantly as employers shift financial burdens to their workers and...

Stats.
May 1, 2007... CREDIT CARD METRICS DECEMBER 2006 Current Outstanding to Cycle 1: 7.4 Current Outstanding to Cycle 2: 1.8 Cycle 1 to Cycle 2: 26.1 1 Chargeoff: 5.7 2 Chargeoff: 23.7 OTHER KEY INDICATORS Bankruptcy rate ...