It’s becoming a familiar headline: US household debt keeps climbing and delinquency rates keep rising. According to the Federal Reserve Bank of New York’s Quarterly Report on Household Debt and Credit, household debt rose to $17.69 trillion in the first quarter of 2024. The report showed 6.9% of credit card debt transitioned to serious delinquency in the first quarter, with approximately 4.8% of consumers holding some debt in third-party collections.

Overall, 77% of American households have at least some type of debt, but that debt isn’t evenly distributed—and consumer spending habits can vary just as much depending on income level.

Understanding the split in consumer spending and its impact on household debt—and in turn, collections—is critical for today’s debt recovery strategies. While across the board debt may be climbing and delinquencies rising, your consumer engagement approach and communications to secure repayment cannot be one-size-fits-all for all consumers.

What is the Consumer Spending Divide?

Spending divide. Split-spending patterns. A tale of two consumers. Two-speed economy…all of these naming conventions describe the widening gap between income levels, spending habits, and inevitably types of debt accumulated.

While the last few years showed consistent spending rates across all income groups as a result of pandemic-era benefits, savings surplus, and wage growth, this is no longer the case. More recent data has revealed that as pandemic savings declined at the same time as both inflation and interest rates increased, lower-income households are becoming more financially strained while higher-income households are mostly unaffected

Today, we see more affluent consumers continue to spend at consistent rates, while more middle- and lower-income consumers’ personal disposable income has not kept pace with rising prices and as a result, these households have become more indebted.

Even when there is a spending uptick in the lower-income sector, as seen in April 2024, what these consumers are spending on and how they are paying for it is still quite different from their higher-income counterparts. These spending patterns show that lower-earning consumers are putting more everyday bills on credit cards—and in turn, credit card delinquencies and charge-offs for these consumers are returning to their pre-pandemic levels faster than other groups.

Not surprisingly, the ripple effect of this deepening income-level divide impacts consumer sentiment along with spending. While surveys from June 2023 had shown similar levels of consumer sentiment between bottom-third earners and top-level earners, today higher-income households report a much more positive outlook compared to many lower earners who report feeling less confident in their own household finances.

And yet, 40% of consumers (across the divide) have expressed an intent to splurge over the summer months—so what different variations of delinquencies can we expect between the split of spenders? And how can businesses differentiate their approach to collections to more effectively recover debt faster?

How Does the Divide Impact Delinquencies?

Let’s start with the first question: what different types of debt are each income sector accumulating today?

Higher-income consumers: non-essentials and luxuries like travel, vacations, hotels, resorts, amusement parks

Surveys show that higher-income households are more optimistic about their ability to take trips and spend on luxuries like full-service hotels and resorts—in fact, 74% of respondents with annual household incomes of $100,000 or more plan to take a summer vacation and, across income levels, 36% anticipate taking on debt to pay for it.

We can even put a microscope to this ‘YOLO’ attitude towards spending on experiences by looking at Disney amusement parks. Surveys find:

• 45% of parents take on debt for Disney vacations
  
• $1,983 is the average amount of debt for those parents
  
• 75% report that their Disney trip did or would take six months or less to pay off
  
• Total respondents who went into debt during a Disney trip also increased 33% from a 2022 survey
  

Lower-income consumers: essentials like rent, utilities, everyday necessities

Conversely, the delinquencies for lower-income households start at home: 25% of low-income renters (defined by a Community Solutions survey as those with an annual income of less than $50,000) are 4-7 months behind on rent. And the New York Fed reported 57% of households are rent burdened in low-income areas, where they pay more than 30% of their monthly income on rent.

Even with wage gains over the last several years, 40% of consumers say they earn insufficient incomes and struggle to keep up with inflation and interest rates. And with approximately 75% of low-income households reporting living paycheck-to-paycheck, to bridge the gap there is an increasing reliance on credit cards to cover bills, so it is not surprising these consumers are falling behind on their credit card payments.

The spending divide leads to a divide on what consumers are going into delinquency for—so what’s the best way to engage and secure repayment when consumers’ financial situations and outlooks are so split?

How Can You Recover More Across Each Side of the Divide?

Regardless of where your customers fall in the divide, businesses must face facts: overall delinquent balances increased by 3.46% in June 2024 and then again in July by 0.51%. This paired with the fact that 1.11% of consumer accounts rolled into higher stages of delinquency marks an uptick in the roll rate in June compared to the improvement (decreases) seen in the past several months.

But with delinquency rates continuing to rise, it’s important to tailor your recovery approach to each consumer you seek to collect from with customized, omnichannel engagement.

A successful collections strategy goes beyond the simplified “tale of two consumers” and actually engages with individuals uniquely with the right message delivered through the right channel at the right time for them.

While getting payment reminders is beneficial for consumers across the divide, hovering between roughly 40% to 50% from the under $50,000 cohort all the way to the $100,000 and above bracket, the preference for how these reminders are sent varies across all consumers:

• 36% prefer text
• 32% prefer email
• 4% prefer a paper letter mailed
• 1% prefer receiving a phone call

But for most businesses, executing an advanced outreach strategy can be a major undertaking, especially for those used to relying on traditional call-and-collect methods. Partnering with TrueAccord can alleviate the potential strain on resources and simultaneously help you collect more faster.

——————-

Sources:

• Federal Reserve Bank of New York Q1 2024 Quarterly Report
• Bloomberg
• Ramsey
• Axios
• Federal Reserve Board Publication May 2024
• New York Times
• McKinsey
• Bankrate
• USA Today
• Community Solutions
• New York Fed
• PYMNTS
• Ascend Market Insights Dashboard
• Report: Consumer Trends Driving the Future of Loan Payments

GREENVILLE, S.C .– Shepherd Outsourcing proudly announces its achievement of the RMAI Certified Business Certification. This prestigious certification, awarded by the Receivables Management Association International (RMAI), underscores Shepherd Outsourcing’s commitment to excellence and adherence to the highest standards in the receivables management industry.

“I am pleased to recognize Shepherd Outsourcing for earning the significant achievement of becoming a Certified Receivables Business,” said RMAI Board President Bett Soldevila. “This milestone demonstrates Shepherd Outsourcing’s commitment and desire to protect consumers by committing to standards that meet or exceed both state and federal requirements.”

“We are thrilled to receive the RMAI Certified Business Certification,” said Jason Hinkle, President at Shepherd Outsourcing. “This achievement reflects our ongoing commitment to delivering top tier outsourcing solutions while maintaining the highest standards of professionalism and compliance. It is a testament to the hard work and dedication of our entire team.”

The RMAI Certified Business Certification is a mark of distinction that demonstrates a company’s dedication to ethical practices, regulatory compliance, and operational excellence. This certification process involves a rigorous evaluation of business practices, including compliance with industry regulations, client service standards, and organizational integrity.

As a certified business, Shepherd Outsourcing will continue to uphold the core values of transparency, accountability, and ethical practices that are central to the RMAI certification. This accomplishment not only strengthens Shepherd Outsourcing’s position as a trusted partner in the receivables industry but also enhances its ability to provide superior services to clients.

For more information about Shepherd Outsourcing and its services, please visit ShepherdOutsourcing.com or contact Jason Hinkle at 864-509-0063 or jhinkle@shepherdoutsourcing.com.

About Shepherd Outsourcing

Shepherd Outsourcing is a leading provider of outsourcing solutions, specializing in the ethical recovery of our clients’ receivables. With a focus on delivering exceptional value and innovation, Shepherd Outsourcing partners with clients to enhance operational efficiency and drive business success.

About Receivables Management Association International (RMAI)

Receivables Management Association International (RMAI) is a nonprofit trade association representing more than 600 companies that purchase or support the purchase of performing and nonperforming receivables on the secondary market. The RMAI Receivables Management Certification Program and Code of Ethics set the global standard within the receivables industry due to its rigorous uniform industry standards of best practice which focuses on the protection of the consumer.

More information about RMAI is available at https://RMAIntl.org/.

Republicans on Capitol Hill have introduced legislation that would require a review of all federal court decisions, laws, regulations and legal cases that used the Chevron Deference Doctrine as the basis for decisions.

The introduction of those bills reflects Congress’s effort to adjust to the post-Chevron world. In that regard, some GOP members of Congress are pressing for a review of cases in which the Chevron Deference Doctrine was used. While they may not be questioning those decisions from a legality perspective, they are questioning them from a public policy perspective.

In the Senate, Sen. Tom Cotton, R-Ark., has introduced S. 4641, legislation that would require the Government Accountability Office to submit a report to Congress identifying where federal courts have used the Chevron Deference Doctrine to reach a decision in favor of deference. The bill also would require federal agencies to conduct a review of cases where the agency was a party and was accorded Chevron deference.

 “Overturning Chevron was a victory for Americans and the Constitution. Congress should make laws, not unelected bureaucrats,” Cotton said. “My legislation will make sure the verdicts that used Chevron to justify government overreach are reviewed.”

In the House, Rep. Mark Green, R-Wis., is taking a different approach. His legislation, H.R. 8889, would force agencies to sunset rules that were upheld using the Chevron Deference Doctrine if Congress has not enacted legislation codifying the rules. The Government Accountability Office would be required to compile a list of executive actions that have been upheld by Chevron Deference. The actions would begin sunsetting every 30 days on a rolling basis unless they are upheld by congressional action.

“Chevron Deference not only usurps Congress’ lawmaking authority, but gives unelected and unaccountable bureaucrats in Washington enormous control over the lives of Americans,” Green said. “My legislation seeks to right this imbalance and restore Congress and the judiciary to their rightful places in our Constitutional system.”

On the other side of the issue, Congressional Progressive Caucus Chair Rep. Pramila Jayapal, D-Wash., is pressing Congress to pass her bill, H.R. 1507, which simply would codify the Chevron Deference Doctrine. Jayapal said that the bill makes it clear that “judges are not policy experts and that it is entirely appropriate for knowledgeable regulatory agencies to respond effectively to protect Americans.”

Other members of Congress are focusing on how Congress can be as specific as possible in legislation so as not to risk judicial review. The House Administration Committee has scheduled a July 23 hearing on “Congress in a Post-Chevron World.”

“As Chairman of the Committee on House Administration, I’m focused on strengthening the Legislative Branch’s capabilities,” Committee Chairman Rep. Brian Steil, R-Wis., said, immediately following the Supreme Court decision. “With Chevron being overturned, we will now begin a robust discussion regarding how the People’s House can play a prominent role in bringing common sense back to the regulations coming out of Washington.”

On the Senate side, Sen. Eric Schmitt, R-Mo., has formed a working group of Republican senators to discuss the impact of the decision and how Congress can more effectively legislate on issues that, in the past, would have been left up to administrative agencies.

Notably, the senators have sent letters to 101 federal agencies, asking how the regulatory decisions will be handled following the Loper decision.

A U.S. District Court in the Eastern District of Missouri recently dismissed a lawsuit under the Fair Debt Collections Practices Act (FDCPA), finding that two letters sent to the plaintiffs’ attorney did not constitute harassment or abuse under 15 U.S.C. § 1692d.

In Ross v. Siegert, the parties were involved in state court litigation when the defendant’s attorney sent the plaintiffs’ attorney a letter demanding payment. The plaintiffs’ attorney disputed the debt and requested verification. The defendant’s attorney responded with a second letter, stating the plaintiffs owed $1,777.50 for attorneys’ fees and costs in the underlying state action. The plaintiffs then filed a complaint against both the defendant and her law firm, alleging that the letters violated § 1692d, by causing loss of sleep, nausea, and other purported physical and emotional manifestations of distress.

The court found that the plaintiffs had standing, citing multiple cases holding that emotional and mental distress are concrete injuries. However, the court found the plaintiffs’ claim failed on the merits. Section 1692d prohibits a debt collector from engaging “in any conduct the natural consequence of which is to harass, oppress, or abuse any person in connection with the collection of a debt.” The court found the letters “as mundane and unremarkable as letters between attorneys representing adversarial parties can be.”

The plaintiffs’ sole argument was that the demand for payment was inherently harassing because they contended that they did not owe a debt. However, they failed to cite any supporting case law or provide meaningful analysis. In a footnote, the court stated the plaintiffs had made no effort to oppose the motion or prosecute the case, questioning if there were other motivations for filing the suit.

The court determined that none of the example violations in § 1692d resembled the defendant’s attorney sending two letters to the plaintiffs’ attorney. While §§ 1692e(2) and 1692f(1) address allegations of pursuing a non-existent debt, the plaintiffs chose not to seek redress under either of those sections The court further noted that “[h]arassing or abusive and false or misleading are not perfectly interchangeable.” The court also commented that the communications at issue were done in the least harassing way possible: the defendants only communicated with the plaintiffs’ attorney and only through letters, which is one of the least intrusive methods of communication.

The court concluded the plaintiffs failed to explain how it was harassing, abusive, or oppressive to them when their attorney received two inoffensive letters. Due to the plaintiffs’ failure to raise any real arguments or defend their claims, the court dismissed the lawsuit with prejudice.

PETALUMA, Calif. — Cascade Receivables Management, LLC, part of the Cascade365 Family of Companies (“Cascade”), is proud to announce that it was recently selected as one of the 2024 Best Places to Work in Collections by ACA International and the Best Companies Group.  This survey program is administered by Best Companies Group, a division of BridgeTower Media, which conducts over 60 local, national, and industry “Best Places” programs each year.

This survey and award program was designed to identify, recognize, and honor the best places of employment in the collections industry. This year, 38 companies met the standard to be selected.

Companies from across the U.S. entered the rigorous two-part survey process to determine the Best Places to Work in Collections. The first part consisted of evaluating each nominated company’s workplace policies, practices, philosophy, systems, and demographics. The second part consisted of an employee survey to measure the employee experience. The combined scores determined the top companies and the final ranking. Best Companies Group managed the overall registration, survey and analysis process and determined the final ranking.

“I am excited that Cascade has been recognized as one of the Best Places to Work in Collections”, said Lee Brockett, CEO of Cascade.  “We strive to treat our employees just like our consumers – with the highest level of respect, compassion, and empathy.  At Cascade, we view our team members as extended family.”

“Our employees are our most valuable resource.  They drive our success.  Providing them with a supportive work environment that recognizes their contributions, comprehensive training, a positive support system, and strong benefit plans are critical to maintaining a high level of satisfaction for our employees,” said Carla Earl Crowley, Director of Human Resources at Cascade.

“I am glad Cascade has been publicly recognized for something we have known internally for a while now.  Cascade strives for excellence across every factor of the business, including in the workplace,” said Shaun Ertischek, Chief Compliance Officer and General Counsel.  “This is evident in the high ratings the company received from its employees regarding how much they appreciate their coworkers and how strong their relationships are with their managers. This is a tribute to the credo espoused by our CEO and company management.  This company truly is a best place to work.”    

For more information on the Best Places to Work in Collections program, visit: www.BestPlacestoWorkCollections.com.

About The Cascade365 Family of Companies 

The Cascade365 Family of Companies provides accounts receivable liquidity solutions to the consumer finance and healthcare industries through its innovative suite of services encompassing AR debt purchase and finance as well as third-party collection servicing. Cascade365 is committed to promoting financial accountability while treating consumers and patients in a fair, dignified, and lawful manner. Cascade365’s consumer and patient friendly focus includes income-based settlements and debt forgiveness. To learn more, please visit Cascade365.com.

About ACA International, Inc.

ACA International is the preeminent association of credit and collection professionals. Founded in 1939, ACA brings together third-party collection agencies, law firms, asset buying companies, creditors, and vendor affiliates, representing more than 230,000 industry employees. ACA establishes ethical standards, produces a wide variety of products, services, and publications, and articulates the value of the accounts receivable management industry to businesses, policymakers, and consumers. To learn more, please visit https://www.acainternational.org/.

We know that ARM industry professionals are pressed for time. This is why the editorial team at insideARM sifts through all the news and highlights only the most important stories each week. Last week we focused on two litigation updates and some advice for communicating with consumers to reduce complaints. Read on for a breakdown of these stories and why we think you need to know about them.

On Tuesday, we brought you an update on the litigation surrounding the CFPB’s Late Fee Rule. On July 18, 2024, the CFPB asked the court to remove the preliminary injunction that has been in place since May. The court asked the parties to produce more information on standing, set a briefing schedule, and set a hearing for August 27th. The outcome of the court’s decision in this case, particularly if the case is dismissed, has the potential to impact everyone in the financial services ecosystem. For a refresher on the final rule and previous events in this case, see here, here, and here.

Wednesday’s news involved a 7th Circuit Court of Appeals case where a consumer argued that a credit furnisher violated the FCRA by continuing to report a debt as delinquent after the consumer successfully completed a bankruptcy plan. However, because the consumer failed to identify the Credit Reporting Agency to which they submitted the debt, the 7th Circuit agreed with the District Court that the case should be dismissed. Though this ruling does not lower the bar for FCRA compliance, It is a case that can be useful in defeating vague allegations. 

We finished the week with some advice for collectors dealing with customer dissatisfaction. With over 100,000 complaints filed concerning debt collection in 2023, it is important to attempt to reduce those complaints and improve interactions with consumers. Like many industries in this age of technology and data, collections can feel like a numbers game. But, it is important to remember the human aspect of the profession and how these soft skills can greatly affect collections efficiency. This article suggested a number of ways to meet consumers where they are at to reduce complaints. 

We at insideARM appreciate you joining us for another weekly recap! If you still have some catching up to do you can find our recap for the week of July 15th here.

For more ARM industry resources and a weekly peer call where you can get your questions answered, click to learn more about Research Assistant by insideARM. With our free 1-month trial you can see if Research Assistant is right for your company!

ROCHESTER, N.Y. – July 25, 2024 – Continental Service Group, LLC d/b/a ConServe is proud to announce that it has received the esteemed 2024 Best Places to Work in Collections award brought to you by ACA International and Best Companies Group. This recognition is a testament to ConServe’s excellence in industry programs and we are thrilled to receive this honor for the tenth time and to be ranked fourth in the Large Employer Category. Best Companies Group conducted the survey program, which administers over 60 local, national, and industry “Best Places” programs each year.

This survey and award program was designed to identify, recognize, and honor the best places of employment in the collections industry. This year, 38 companies met the standard to be selected. To qualify for participation, companies needed to meet the following criteria:

• Be a for-profit or not-for-profit business or government entity
• Be a publicly or privately U.S. company
• Have a minimum of 15 employees in the U.S.
• Must be in business a minimum of 1 year
• Must be a collection agency, collection law firm or debt buyer

Companies from across the U.S. entered the rigorous two-part survey process to determine the Best Places to Work in Collections. The first part consisted of evaluating each nominated company’s workplace policies, practices, philosophy, systems and demographics. The second part consisted of an employee survey to measure the employee experience. The combined scores determined the top companies and the final ranking. Best Companies Group managed the overall registration, survey and analysis process and determined the final ranking.

Rich Klein, ConServe’s President, expressed his gratitude for the acknowledgment from Best Companies Group. He emphasized, “This recognition from the industry underscores the commitment of our team members who wholeheartedly support our mission and principles of doing the right thing, at the right time, in the right way. The feedback received from our employees through the survey significantly enhances this award. By leveraging this feedback, we tailor our strategies and initiatives to enhance employee satisfaction and well-being in our workplace. Our employees are our most valuable asset, and we are dedicated to attracting, supporting, and advancing top talent. We are thrilled to receive this honor for the tenth time.”

For more information on the Best Places to Work in Collections program and a list of the 2024 winners, visit: 

www.bestplacestoworkcollections.com

https://www.acainternational.org/news/best-places-to-work-in-collections-winners-announced-at-convention-2/

About ConServe

ConServe is a top-performing accounts receivable management service provider specializing in customized recovery solutions for their Clients. Anchored in ethics and compliance, and steadfast in their pursuit of excellence, they are a consumer-centric organization that operates as an extension of their Clients’ valued brands. For over 38 years, they have partnered with their Clients to provide unmatched customer service while simultaneously helping them achieve their accounts receivable management goals. Visit us online at: www.conserve-arm.com  

Debt collection complaints accounted for 7% of more than 1.6 million customer complaints fielded by the CFPB in 2023. Over the years, many solutions were developed to curb collections complaints. But four simple actions are typically at the core of reducing complaints. See the detail in this blog on how each action can contribute to a reduction in complaints.

Customer-facing businesses regularly field complaints—it’s simply a part of day-to-day activities. The debt collection industry knows about complaints better than most. Just look at the Consumer Financial Protection Bureau’s (CFPB) annual complaint report from 2024.

The Bureau fielded more than 1.6 million customer complaints in 2023 – with over 7% relating to debt collections (the second most common complaint topic for that year). These complaints spanned almost all debt types with the 3rd largest (23%) were received related to credit card debt.

Take 4 Simple Steps to Curb the Volume of Complaints

Some complaints in collections are inevitable. Even the most professionally executed collection call or most skillfully written collection letter could result in a customer complaint.

We also know it is impossible to reduce your overall complaint volume to zero. Attempting to get to a zero-complaint environment would require high levels of expended effort with disappointing results.  Zero complaints is unachievable.

Instead, place your focus on these four areas that have the highest probability of influencing complaint volumes:

• Customer Interaction Training
• Collections Correspondence
• Digital Engagement
• Dialer Configurations

1. Customer Interaction Training

Don’t Forget About the Soft Skills to Show Customers They’re Important

Being a collector is not an easy job. Most days you face complex system navigation, complex financials and difficult discussions with customers. Collections training tends to spend a significant amount of time focusing on the hard skills (e.g., system navigation, financials, compliance).

But very little training time covers the soft skills that can sway conversations in a positive direction. Robin Williams once said, “Everyone you meet is fighting a battle you know nothing about. Be kind. Always.”  This quote can be used to describe effective collections efforts.

Many of the most common debt collection complaint reasons from the 2024 CFPB response summary could have been avoided had the collector approached the interaction with kindness and empathy.

Common Reasons for Debt Collection Complaints

• Attempts to collect debt not owed
• Took or threatened to take negative or legal action
• False statements or representations
• Threatened to contact someone or share information improperly

Many might think that empathy can’t be taught. But agents can learn empathy from collections training covering three key elements:

1. Success profiles and behaviors
2. Call modeling to recognize triggers and investigate root cause
3. Practice and ongoing coaching

When taught properly these behaviors will enhance collectors’ ability to listen and communicate with the customer. Customers that feel heard, and are treated with empathy, rarely complain about that interaction.

2. Collections Correspondence

Regain the Lost Art of Letter Writing so Your Communications Drive Responses

A Chinese proverb says, “Never write a letter while you are angry.” But when looking at some collections correspondence, you might think most were drafted while angry.

The second highest driver of CFPB debt collection-related complaints was due to “written notification about a debt.” You’d have to scour the CFPB’s complaint database to unearth the exact driver behind this reason. Yet, it is likely that many of these 12,400 “written notification” complaints can be tied back to poorly written collection letters.

As a key component of collection efforts, letters (whether sent via physical mail or email) must be properly written to be effective. Just like an agent conveys empathy in a collection call, a letter can as well. Letters should refrain from accusatory or inflammatory language and should instead extend a helping hand to the customer. They should also provide multiple options for customers to either speak to an agent for assistance or self-serve to cure their debt.

Good business writing practices dictate to write at an 8th grade level, striking a balance between simplicity and providing sufficient detail. Avoid using long cumbersome words or those that may not be understood. A letter written with too much complexity risks making a customer feel like they are being talked down to. While a letter written too simply risks making a customer question the competence of the sending institution. Pay particular attention to spelling and grammar. Misspellings and poorly constructed sentences can affect the customer’s perception of the institution’s competency.

Lastly, treat letters like any other official business document and include them in an annual review and approval process. Just like a procedure requires updates over time, so do letters.

3. Digital Engagement

Get Results by Communicating on Their Terms

If not doing so already, you should begin introducing new digital capabilities to your collections operations. The traditional collection methods of calls and mailed letters do not generate enough results in today’s age of digitally savvy customers.

Today’s generation prefers to engage digitally via text, email, chat and other online/mobile app communication methods. As a matter of fact, according to a Forbes Advisor article, 78% of Americans prefer to bank digitally.

If you redirect collections efforts to text, email or mobile app communications, customers can interact on their terms, and when it is convenient for them. You remove the “embarrassment factor” that customers might experience when having to verbally discuss personal issues with collectors.

Regardless of what actions you take related to digital engagement, be sure to run everything by your Compliance & Legal areas before deployment. With the CFPB’s debt collection rule clarifying certain FDCPA prohibitions, you’ll need controls in place to safely and compliantly deploy digital communication methods.

4. Dialer Configurations

Don’t let Dialer Tactics Drive Complaints

Dialer technology has significantly advanced over the past decade. Many now come with fully equipped, configurable compliance modules that aid in ensuring adherence with a vast array of calling restrictions and requirements.

Even with this technology, 7% of the CFPB debt collection related complaints were due to “communication tactics,” with common sub-reasons being:

• Harassed by repeated phone calls
• Calls during inconvenient times
• Calls to inconvenient places
• Calls outside of permitted hours

Compliance modules, in almost all cases, can manage these common concerns with simple call counter controls, call window calculations and call preference capture.

When using calling as the collections contact channel, why call customers repeatedly at times they don’t want to be called and at places or numbers they don’t want to be used? Calling them at the times and places they prefer does not guarantee a right party contact.  But it significantly increases the chances of connecting and having a meaningful interaction.

Tweak the Complaints Recipe to Work for You

Any successful recipe goes through countless iterations and tweaks before the final dish is composed; and even then, it may not be enjoyed by all patrons. Similarly, there is no perfect recipe to solve complaints for all institutions. Any solid complaints process starts with a core construct and is then continuously modified to ultimately land on the perfect recipe to fit the need.

Cooking competition hosts tell their contestants, “Put your spin on this classic dish.” You can take the same approach by using these simple complaint fixes as the classic dish and putting your institution’s spin on it to meet your goals and suit your customers’ needs.

The U.S. Court of Appeals for the Seventh Circuit recently upheld a trial court’s rejection of a borrower’s allegations that a mortgagee and its servicer violated the federal Fair Credit Reporting Act and the federal Fair Debt Collection Practices Act by allegedly inaccurately reporting her loan as delinquent following the borrower’s successful completion of her bankruptcy plan, allegedly rejecting her subsequent monthly payments, and filing a foreclosure action based on the supposed post-bankruptcy defaults.

A copy of the opinion in Freeman v. Ocwen Loan Servicing, LLC is available at:  Link to Opinion.

The plaintiff borrower obtained a loan to purchase her home. After falling behind on her mortgage payments, the mortgagee initiated a foreclosure action. The plaintiff borrower filed for bankruptcy and eventually cured her pre-petition mortgage default through her bankruptcy plan payments.

Unfortunately, after the successful completion of her bankruptcy plan, the servicer allegedly inaccurately reported her loan as delinquent and began rejecting her subsequent monthly payments, leading the mortgagee to file a second foreclosure action, which was later dismissed.

The plaintiff borrower sued the mortgagee and the servicer alleging violations of the FCRA and the FDCPA. The trial court dismissed the borrower’s FCRA claim as the borrower failed to identify the consumer reporting agency (CRA) that she supposedly notified of her credit dispute. The trial court also granted summary judgment against the borrower on her FDCPA claim, citing lack of standing. This appeal followed.

On appeal, the plaintiff borrower argued that the trial court “abused its discretion in denying her leave to amend to cure deficiencies in her FCRA claim,” and that the servicer violated the FCRA by failing to conduct a reasonable investigation after being notified by CRAs of her dispute over the delinquent loan reporting. She also argued that the servicer’s allegedly erroneous reporting and collection practices caused her various injuries sufficient to confer standing

The Seventh Circuit affirmed the trial court’s dismissal of the FCRA claim, finding that the plaintiff borrower failed to specify which CRA she notified, thus not providing the servicer with fair notice of the claim.

The Seventh Circuit also upheld summary judgment in favor of the servicer on the borrower’s FDCPA claim, concluding that the borrower lacked standing. The Court determined that the borrower did not provide sufficient evidence of concrete injuries, such as monetary harm or intangible injuries closely related to common law analogues like defamation or invasion of privacy.

In so ruling, the Seventh Circuit noted its prior rulings that “[s]eeking legal advice in response to a communication concerning a disputed debt does not amount to an injury in fact,” and that “hiring a lawyer to resolve confusion about the proper course of action is also insufficient to confer standing.”  Moreover, the trial court excluded evidence of the borrower’s supposed attorney’s fees payments as a discovery sanction.

In addition, the Court held that the borrower’s self-serving declarations about the claimed reasons for her denial of credit supposedly due to the alleged inaccurate reporting did not amount “to specific facts establishing that [the servicer] disseminated the inaccurate reporting to a third party, such as [one of the CRAs], who understood the defamatory significance of the inaccurate reporting.”

Lastly, the Seventh Circuit rejected the borrower’s claims of emotional and reputational injury arising from the foreclosure action, reiterating its prior rulings “that anxiety, embarrassment, and stress are not concrete injuries in fact.”  Similarly, the Court held that the fact that the servicer “called her 12 times in a month and completed numerous door knocks” was insufficient, as “it is not enough for a plaintiff to be ‘annoyed’ or ‘intimidated’ by an FDCPA violation,” and mere “stress by itself with no physical manifestations and no qualified medical diagnosis does not amount to a concrete harm.”

Accordingly, the Seventh Circuit affirmed both the trial court’s dismissal of the plaintiff borrower’s FCRA allegations, and its entry of summary judgment in favor of the defendants on the plaintiff borrower’s FDCPA claim.

DULUTH, Ga. – Crown Asset Management, a receivables acquisitions firm near the Atlanta, GA greater metro area, has a deep-rooted commitment to community engagement guided by their core values of excellence, integrity, reliability, respect, teamwork, and leadership. These guiding values drive the organization’s support for various charitable causes. This past year, Crown Asset Management was honored to focus their efforts on the Susan G. Komen organization, Habitat for Humanity, Best Buddies International, and more. Here is a recap of what the team was up to in 2023 and now in 2024. 

Susan G. Komen 

The mission of the Susan G. Komen organization is to save lives by meeting the most critical needs in our communities and investing in breakthrough research to prevent and cure breast cancer. In October 2023, Crown Asset Management joined millions of volunteers in the fight for a cure, raising a total of $9,246 for the cause! The money raised will fund research to discover more effective treatments, as well as vital patient support to help connect people with things like breast cancer screenings, diagnostics, treatment assistance and so much more. 

Then, in March 2024, the team joined in the “Big Wig” fundraising campaign for the organization. Through teamwork and leadership, the team raised $15,146. These resources will allow breast cancer patients to have more special moments with their loved ones. One more walk in the park. One more bicycle ride. One more birthday celebration. Thank you to everyone that supported the campaign!  

We are so proud of our dedicated team who embody our values of reliability, teamwork, and leadership by participating in on-site events and fundraising for donations.  

Best Buddies International 

Crown Asset Management was honored to participate in the Best Buddies Champion Gala on October 20th in Atlanta, GA. All funds raised at the Gala benefit Best Buddies – the world’s largest organization dedicated to ending the social, physical and economic isolation of the 200 million people with intellectual and developmental disabilities (IDD) through programs that help them form meaningful friendships with their peers, secure successful jobs, live independently, improve public speaking, self-advocacy and communication skills, and feel valued by society. 

The Crown Asset Management team also participated in the Best Buddies Friendship Walk, an annual event that takes place in various locations across the country. Participating in the Friendship Walk served as an excellent team-building and service opportunity. Together, the Crown Asset family supported a cause that aligns with its core values of integrity and respect, creating friendship opportunities, integrated employment, leadership development, and inclusive living for people with IDD. 

The event also allowed Crown Asset Management to connect with other local businesses and organizations, promoting unity, collaboration, and excellence as the team joins other companies in their commitment to giving back. Crown Asset Management wholeheartedly extends sincere appreciation to everyone who has championed the cause of Best Buddies in Georgia, with a special mention to the top fundraisers and teams.  

Habitat for Humanity 

In September 2023, the Crown Asset Management team partnered with the Gwinnett / Walton Habitat for Humanity organization to take part in a volunteer build day in Loganville, GA. The weather was perfect and the team showed up in full force— a true show of dedication and reliability— to demonstrate the power of teamwork and community!  

“It was a highly successful day and I couldn’t be more proud of our team for their hard work in making it a worthwhile effort. It is always rewarding to join together and use the combined power of teamwork and work ethic to make an impact right here in our community. We were honored and privileged to have the opportunity to take part in building the future home of a local hard working family who was carefully selected and extremely grateful as the recipients of this new home,” said Brian Williams, CEO at Crown Asset Management.  

It was a true honor to later witness the family home dedication in December, 2023. Chris McGill and Linda Dameron accepted a plaque on behalf of Crown Asset Management for the ceremony. Partnering with Habitat for Humanity in helping build the family home was an empowering experience that epitomizes the very essence of the company’s values of integrity and teamwork.  

Teamwork Builds a Healthy Organization 

Teamwork lies at the heart of Crown Asset Management’s collective impact strategy. Collaboration is essential, and the company aims to always foster synergy among team members, partners, and community stakeholders. Through shared goals and collaborative efforts, Crown Asset Management maximizes its effectiveness in driving positive change. 

Leadership Above All Else 

Leadership is not merely a role but a responsibility embraced by Crown Asset Management. Setting an example through advocacy and empowerment, the organization hopes to inspire others to join in its mission of making a difference. Guided by its core principles, Crown Asset Management endeavors to be a leader in corporate citizenship, setting a standard of excellence for social responsibility within its industry. 

Because of the organization’s core values, and its commitment to the community at large, Crown Asset Management takes pride in the impact made thus far while remaining humbled by the opportunities to serve. Together with its partners and stakeholders, Crown Asset Management strives to build a brighter future for all—a future guided by excellence, integrity, reliability, respect, teamwork, and leadership. 

About Crown Asset Management 

Founded in 2004,Crown Asset Management, LLC, is a professional receivables management firm that specializes in the acquisition of non-performing accounts. The team, through its robust Compliance Management System, prioritizes compliant collection efforts and the ethical treatment of its consumers across its outsourced servicing (or Servicer) platform. Crown Asset Management is an RMAI Certified Receivables Business headquartered in Duluth, GA.