The Dodd-Frank Wall Street Reform and Consumer Protection Act, which created the CFPB, authorizes the CFPB to supervise non-banks in the specific markets of residential mortgage, payday lending, and private education lending. In addition, for other nonbank markets for consumer financial products or services, the CFPB has the authority to supervise “larger participants.” As directed by Dodd-Frank, the Bureau must define such “larger participants” by rule, and an initial such rule must be issued by July 21, 2012. Last summer, the CFPB sought public comment about possible markets to include in the initial rule and available data sources the Bureau could use to define larger participants in - markets.

Under the proposed rule, debt collectors with more than $10 million in annual receipts from debt collection activities would be subject to supervision. Based on available data, the CFPB estimates that the proposed rule would cover approximately 175 debt collection firms — or 4 percent of debt collection firms — and that these firms account for 63 percent of annual receipts from the debt collection market.

Under the proposed rule, consumer debt collection or reporting agencies with more than $7 million in annual receipts from consumer reporting activities would be subject to supervision. This would include approximately 7 percent of consumer reporting agencies based on available data. The proposed threshold would allow the CFPB to cover about 30 consumer reporting agencies. The CFPB estimates that these 30 companies account for about 94 percent of the annual receipts from consumer reporting.

This is the CFPB’s first in a series of rulemakings to define larger participants. The CFPB chose annual receipts as the criterion for both debt collection and consumer reporting because it approximates market participation in these two markets. As the CFPB adds new markets, it will choose the best criteria and the appropriate thresholds for each market.

CFPB to Supervise US Debt Collectors is a post from: Federal Management

Margaret Cole, said:

“I joined the FSA to help in the fight against wrongdoing within the financial services industry and I believe a lot has been achieved in my time here.”

“We have shown the FSA is not afraid to take on difficult cases and will not shy away from pursuing criminal prosecutions, however difficult to prove. It’s painstaking work and the legal process takes a long time but there are people sitting in prison now because of our commitment. And the next 12 months will see more trials and more convictions as the pipeline of our cases comes to fruition in the courts.”

“It has been a challenging but rewarding few years and I believe, with the help of a team of quality people, I have created a successful enforcement platform to take into the UK’s new regulatory authorities. The time has come for me to seek a fresh challenge, knowing that I leave the continuation of a winning strategy in safe hands.”

Hector Sants, FSA chief executive, said:

“Margaret has been pivotal in transforming the FSA’s approach to enforcement and she leaves a substantial legacy, widely respected in legal, regulatory and international circles. She has been a strong leader and advocate of the importance of delivering a credible deterrent to those that attempt to commit wrongdoing, as well as being an invaluable member of my executive team.”

“Her expertise across a broad range of management disciplines and the work she has done in setting up the conduct business unit has put us in good shape to develop the future conduct regulator.”

“I would like to express my personal thanks, and those of the organisation, for all that Margaret has achieved and I wish her every success in whatever future challenge she chooses next.”

Adair Turner, FSA chairman, said:

“On behalf of the FSA Board, I would like to extend my appreciation to Margaret for her outstanding contribution to the effectiveness of the FSA over the years, her strong management credentials and for the expertise and quality judgement she has brought to our Board discussions. She has made a lasting impact. We will be sorry to lose her for the organisation’s final year but she will depart with our thanks and best wishes.”

Martin Wheatley, CEO-designate of the FCA, said:

“I’m enormously grateful to Margaret for establishing the conduct business unit, which will go on to form the foundation of the Financial Conduct Authority.”

FSA Managing Director Margaret Cole to Leave Post is a post from: Federal Management

A three hour conference call on Wednesday between Finance Ministers scrutinised the planned Greek budget cuts and, while praising the “substantial progress” that Greece had made, greater levels of detail, including a full timeline of events for implementing measures was demanded.

A decision on the bailout is expected to be finalised on Monday.

A final decision on the bailout is expected to be completed on Monday with Greece facing an oncoming  mid-March deadline to make repayments 14.5bn-euro bond, or face bankruptcy.

The EU and IMF have demanded that Greece make deep cuts and restructure its economy in return for the bailout.

Eurozone Calling For Tighter Oversight in Greek Bailout is a post from: Federal Management

In the latest quarterly inflation report from the Bank of England, Sir Mervyn King said growth was likely to recover gradually, although “substantial headwinds” will hamper the recovery and there is likely to be a “zig zag” pattern of alternating positive and negative growth.

Growth of one per cent (1%) was forecast for 2012 with 1.8% forecast for 2013.

Sir King said:

“We can take some reassurance from the fact that inflation is now falling. But we are steering a course through choppy waters, and many people are experiencing difficult times.”

“The fiscal consolidation and tight credit conditions at home and the weakness of our major overseas trading partners are acting as a drag on growth.”

He added:

“We are moving in the right direction.”

UK Economy to “Zig-Zag” Towards Recovery is a post from: Federal Management

Slovakia, Slovenia and Malta also saw their ratings lowered.

Great Britain, France and Austria avoided the downgrade but did see their status changed to “negative outlook”  which implies a 30% chance of a downgrade over the next 18 months.

Amendments to Ratings

• Austria – Remained at Aaa – Outlook changed to Negative
• France - Remained at Aaa – Outlook changed to Negative
• Italy – Lowered from A2 to A3 – Down One Notch
• Malta – Lowered from A2 to A3 – Down One Notch
• Portugal – Lowered from Ba2 to Ba3 – Down One Notch
• Slovakia – Lowered from A1 to A2 – Down One Notch
• Slovenia – Lowered from A1 to A2 – Down One Notch
• Spain – Lowered from A1 to A2 – Down Two Notches
• UK - Remained at Aaa – Outlook changed to Negative

As the figures above show, Spain saw the sharpest fall in with the countries credit rating dropping two notches.

Speaking to the BBC Chancellor George Osbourne said:

“It was a reality check for the whole political system that Britain has to deal with its debts, that we can’t waver in the path of dealing with our debts.”

“This is yet another organisation – in this case a credit ratings agency – warning Britain that if we spend or borrow too much we’re going to lose our credit rating.”

As the UK faces the realisation of the severity of it’s debt situation, for many businesses the reality of debt recovery, be it through unpaid invoices, overdue accounts or any other means is just as severe. Any company who has an issue with late or non-payers should contact Federal Management immediately on 0844 875 4022 for immediate assistance in recovering the outstanding amount.

Moody’s Cut European Credit Ratings is a post from: Federal Management

As part of the Project Merlin agreement, Barclays, Lloyds Banking Group, the Royal Bank of Scotland, HSBC, and, in the context of lending, Santander, “stated a capacity and willingness” to lend £190 billion of new credit to business in 2011, with £76 billion earmarked for SMEs.

However, new data released by the Bank of England reveals that £74.9 billion was extended to SMEs in 2011 representing a £1.1 billion shortfall.

After taking loan repayments into account, the five – Lloyds Banking Group, Royal Bank of Scotland, Santander, Barclays and HSBC – saw combined net lending slide in 2011, the Bank of England said, including a 3 per cent drop in the final quarter.

Small Business Lending Targets Missed by Banks is a post from: Federal Management

Speaking to the Commons justice select committee, Ann Beasley, director general of finance at the department, revealed when providing evidence that there was a possibility of selling-off the “aged debt book” and attempting to recover outstanding balances owing for more than a year.

The debt collectors utilised will share a percentage of the monies collected with the Treasury, Her Majesty’s Courts and Tribunals Service said.

“HMCTS considers outstanding balances over 12 months to be ‘aged debt’. This equates to roughly £420m or 1.2m accounts.”

“HMCTS has recently engaged with three interested suppliers to pilot collection of aged debt. Each supplier was provided with 7,000 randomly selected aged accounts to work over a three month period.

“The outcomes of the pilot will be to understand the collectability of our aged debt and the best combination of techniques and innovation to collect aged debt.

Ann Beasley, Director General of Finance said:

“We collected more fine income in the last year than before but the fines awarded are going up. We are looking at a number of new approaches. Courts are making it easier to pay fines online.”

“We need to reconsider the way we enforce fines and probably engage a third party for better IT.

“Meanwhile the courts service is … trying to get people to pay their fine while still in the courts and [using] nudge techniques. We find that if you text them and use their names they are more likely to pay up – but don’t tell anyone about that.”

In answer to a written question on the outstanding fines for criminal offences imposed by courts in England and Wales, the justice minister Jonathan Djanogly gave the figure as £609,516,266.

Mr Djanogly said:

“This amount includes fines imposed in the magistrates and crown courts, prosecutor costs, compensation orders, victims surcharge and the value of unpaid fixed penalty notices and penalty notices which are transferred to Her Majesty’s Courts and Tribunals Service for enforcement. The amount outstanding also includes the balance of accounts which are being paid by agreed payment plans.”

As well as criticising the department’s past delays in filing its financial returns, MPs on the justice select committee heard that the MoJ hoped to raise as much as £250m from the sale of redundant court buildings, prisons and other assets.

A Ministry of Justice spokesperson said:

“We are determined to tackle the outstanding debt which has built up over the past five years.”

“We have already taken steps to improve the collection of fines and confiscation orders – including targeted fines blitzes, increased deductions from benefits and targeted text messaging. Enforcement is an absolute priority, and we will continue to improve the way in which these sentences are upheld.”

Ministry of Justice Turn to Private Debt Collectors is a post from: Federal Management

In the United Kingdom, the underlying pace of recovery slowed during 2011, with activity falling slightly during the final quarter. Some recent business surveys have painted a more positive picture and asset prices have risen. But the pace of expansion in the United Kingdom’s main export markets has also slowed and concerns remain about the indebtedness and competitiveness of some euro-area countries. A gradual strengthening of output growth later this year should be supported by a gentle recovery in household real incomes as inflation falls, together with the continued stimulus from monetary policy. But the drag from tight credit conditions and the fiscal consolidation together present a headwind. The correspondingly weak outlook for near-term output growth means that a significant margin of economic slack is likely to persist.

CPI inflation has fallen back from its September peak, declining to 4.2% in December. Inflation should continue to fall sharply in the near term, as the increase in VAT in January 2011 drops out of the twelve-month comparison. Inflation is then likely to decline further as the contribution of energy and import prices diminishes, while downward pressure from unemployment and spare capacity continues to restrain domestically generated inflation.

In the light of its most recent economic projections, the Committee judged that the weak near-term growth outlook and associated downward pressure from economic slack meant that, without further monetary stimulus, it was more likely than not that inflation would undershoot the 2% target in the medium term. The Committee therefore voted to increase the size of its programme of asset purchases, financed by the issuance of central bank reserves, by £50 billion to a total of £325 billion. The Committee also voted to maintain Bank Rate at 0.5%. The Committee expects the announced programme of asset purchases to take three months to complete. The scale of the programme will be kept under review.

The Committee’s latest inflation and output projections will appear in the Inflation Report to be published at 10.30am on Wednesday 15 February.

The minutes of the meeting will be published at 9.30am on Wednesday 22 February.

Bank of England to Inject £50 Million Into Economy is a post from: Federal Management

Directors have been elected by their fellow association members to serve in a leadership role, providing guidance and direction for the association.

The 2012 IACC Board of Directors:

• President: Randy Frazee, Randall & Richards, Tucson, Ariz.
• Vice President: Robert Ingold, Commercial Collection Corp. of New York, Tonawanda, N.Y.
• Treasurer: Lee VandenHeuvel; Ross, Stuart & Dawson, Inc.; Auburn Hills, Mich.
• Past-President: John Yursha, Commercial Recovery Group, Dover, Del.
• Director: Terri Boettcher, BC Services, Inc., Longmont, Colo.
• Director: Michael Daugherty, Synter Resource Group LLC, Charleston, S.C.
• Director: Thomas Hamilton, The American Lawyers Quarterly, Cleveland.
• Director: Albert Knowles, A.V. Knowles & Co Ltd., Port of Spain, Trinidad.
• Director: Bryan Leib, Leib Solutions, LLC, Gibbsboro, N.J.
• Director: Bill Mann; Joseph, Mann & Creed; Shaker Heights, Ohio.
• Director: Jocelyn Nager; Frank, Frank, Goldstein & Nager, P.C.; New York

With about 320 commercial collection agency, associate, law list and affiliate members, The International Association of Commercial Collectors Inc. (IACC) is the world’s largest international trade association for commercial debt collection professionals. Headquartered in Minneapolis, IACC serves members throughout the United States and in 25 other countries worldwide. Members of IACC recover millions of dollars annually for their clients and provide valuable assistance to credit departments in controlling mounting debts.

International Association of Commercial Collectors Elects 2012 Board of Directors is a post from: Federal Management

New England Collectors Association President David Sands said:

“These findings reinforce the critical role the third-party debt collection industry plays as a service provider in recovering unpaid consumer debt on behalf of the public, private and nonprofit sectors. Moreover, third-party collectors are actively engaged in New Hampshire communities as employers, volunteers, philanthropists and taxpayers.”

ACA International CEO Pat Morris said:

“Our nation was built on the premise that those who provide credit, goods and services to consumers have the expectation of being repaid. Recovering these debts helps organizations survive; prevents layoffs; keeps cost down and credit, goods and services available; and reduces the need for tax increases to cover government budget shortfalls.”

Third Party Debt Collection Agencies Boosting Economies is a post from: Federal Management