Consumer Finance Report

Back to Basics, Continued—Ever wonder just how your credit score is determined?

August 24, 2021

United States: A part of everyday life in the consumer finance industry is dealing in credit and credit scores. We look at our prospective customers in terms of their ability to repay, and nothing measures that ability quite as good as the customer’s credit score. So, what exactly, are the factors that go into formulating the score?

Back to Basics, Continued—E-Contracts As Collateral!

August 17, 2021

United States: Last week, I wrote about taking consumer loan promissory notes and installment sales contracts in electronic format. See here. This week, I address the repercussions of such electronic contracts serving as collateral for lenders to consumer finance companies and installment sellers.

Back to Basics, Continued—Do you have your electronic signature solution in place?

August 10, 2021

United States: In this blog series, I have written several times on the subject of electronic transactions—that is, how to conduct business electronically. See here, here and here. The surge in remote transactions has accelerated during the COVID Pandemic with the need for electronic signatures that evidence mutual agreement to contracts.

Back to Basics, Continued—The CFPB has accelerated the adoption of changes to the Fair Debt Collection Practices Act Regulation F, now effective November 30, 2021

August 3, 2021

United States: We have been waiting for the CFPB’s final adoption and implementation of its new debt collection Rule.

Back to Basics, Continued—A Primer on Fraud

July 27, 2021

United States: “Fraud” is a term that is kicked around a lot in the world of consumer transactions. But, what are we really talking about when a consumer claims that he or she has been “defrauded”? Let’s step back in history for a moment.

Back to Basics, Continued—Magic in Less than 30 Words

July 20, 2021

United States: Those who work in the consumer finance industry are accustomed to disclosure requirements of federal and state laws and regulations. But, here is one that you may not have heard about lately: The Fair Credit Reporting Act Section 623 requires financial institutions that report negative or derogatory information on consumers to credit reporting agencies to so notify consumers unless they have already given a pre-emptive notice in a form that does not exceed 30 words. Really! Let me elaborate.

Back to Basics, Continued—There’s Strength in Numbers

July 13, 2021

United States: According to the Alabama Banking Department’s most recent Report, there are over 3300 traditional installment licensees in Alabama.

Back to Basics, Continued—“When is a door, not a door? When it’s ajar!” … and Other Such Questions and Answers!

July 6, 2021

United States: Some time ago, I published a blog challenging readers to identify when charges in connection with consumer credit transactions are or are not Finance Charges.

Back to Basics, Continued—When was the Last Time You Reviewed Your Insurance Disclosures and Insurance Policies?

June 29, 2021

United States: Many installment sellers and consumer finance companies offer ancillary credit insurance products. Such products may include credit life, credit disability or credit unemployment insurance. Except with respect to required property insurance in connection with secured transactions, the sale of these other ancillary insurance products must be voluntary in order to be excluded from Finance Charge under the Truth-in-Lending Act (TILA).

Back to basics, continued—Let’s talk about the status of originations and collections, and the future

June 22, 2021

Early in the COVID-19 Pandemic, I wrote with concern and some trepidation about the effect of the Pandemic on business. See Dentons - Back to Basics, Continued - Is there a Bright Light Shining Through the Pandemic Tunnel? There was immediately a steep decline in originations of new loans, and this fact was frightening. On the other hand, collections of outstanding loan receivables remained strong. In fact, collections and pay-offs were so good that many consumer finance companies became concerned about the loss of profits as a result of prepayments alone.