Access to Credit Builds Consumer Confidence

tight-moneyFast on the heels of the release of the CFPB’s Proposed Rule, which could effectively shut down the small dollar lending market, comes the news that consumers’ spending expectations dropped, after an upswing in September. Perhaps not surprisingly, there was also a decline in consumers’ outlook on credit availability in the year ahead, according to the Federal Reserve Bank of New York.

The New York Fed’s Survey of Consumer Expectations is a monthly, internet-based survey of approximately 1,200 household heads. It contains insight about how consumers expect overall inflation and prices for food, gas, housing, education and medical care to change over time. It also provides Americans’ views about job prospects and earnings growth, as well as their expectations about future spending and access to credit.

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CFPB’s Payday Lending Rule Could Block Consumers’ Access to Small Dollar Loans

We here at CCS understand, perhaps better than most, the important role credit plays in the economy.  Consumer borrowing fuels economic growth. Credit, when used responsibly, allows consumers to spend money on goods and services, which in turn allows businesses to grow and expand, creating jobs and increasing income. So it is good news that consumer borrowing grew at a record pace in August, as reported by ACA International:

“The non-revolving credit increase was the highest since September 2015, Bloomberg reports. Economists estimated total consumer borrowing would increase $16.5 billion in August, according to the article. ‘Steady hiring and income growth may be making Americans more willing to borrow, helping to sustain consumer spending and the economic expansion,’ it states.”

The CFPB released the Proposed Rule in June, which could essentially shut down the small dollar lending market, forcing businesses to close and denying access to credit for millions of Americans who have nowhere else to turn.
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Debt Collection Complaint Average Continues to Decline

chartAs an ethical and professional company within the debt collection industry, we here at CCS were very pleased to see that, according to the Consumer Financial Protection Bureau, consumer debt collection complaints have declined over the last six months. This is great news for the industry; what is not so great is the manner in which the CFPB reports on the data they collect.

As detailed in this article, ACA International (The Association of Credit and Collection Professionals) is very concerned about the Consumer Financial Protection Bureau’s flawed consumer complaint handling process. Some examples:

  • Since 2012, the CFPB has been sharing individual-level complaint data on their website.
  • In 2015, they began providing consumers with the option to include “complaint narratives” for publication in the Consumer Complaint Database.
  • CFPB’s monthly complaint reports now include a list of the “most-complained-about-companies” based on raw number of complaints.

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CCS Attends CFPB Field Hearing

A CFPB debt collection field hearing was held in Sacramento on July 28, 2016On July 28, our own Rodney Meeks, CEO of Credit Consulting Services, attended a Consumer Financial Protection Bureau (CFPB) debt collection field hearing in Sacramento in an effort to humanize the collection industry and put a face on companies like CCS. He talked about our employees, our relationships with our clients, and our involvement in the community, in an effort to enlighten the CFPB on the true nature of legitimate collection agencies. The CFPB is expected to release an outline of proposals under consideration for debt collection rulemaking.
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