President Barack Obama won re-election Tuesday but other races will impact the debt collection and buying industry much more than the big one at the top of the ticket.
Elizabeth Warren unseated Sen. Scott Brown in Massachusetts in a high-profile race. Warren was originally tapped to head up the CFPB. Even though Richard Cordray was eventually appointed director of the agency, Warren was instrumental in its formation and early direction.
As a Senator, Warren will be in a position to influence legislation in a much more profound way – she will actually be writing it. In addressing supporters Tuesday night after her victory was announced, Warren told volunteers, “You did this for every family that has been squeezed and hammered,” keeping her theme of consumer protection.
Read the entire article here: “What The Election Could Mean For the ARM Industry”
While the re-election of President Barack Obama will ensure the Consumer Financial Protection Bureau will remain in full effect, the huge win for consumer advocate Elizabeth Warren will send shivers down the spine of the majority of debt collection industry.
Oh course, those who play by the rules and have built their business strategies around the coming regulatory changes will flourish. Unfortunately, this will not be possible for the majority of collection agencies because they continue to pursue a “Sue-Em-All” strategy. A quick review of the 10-k’s of the largest debt buyers and collectors on Wall Street reveals that upwards of 50% of their collections come from lawsuits.
Ropay Asset Investors has an exclusive relationship with a collection agency that treats all their customer debtors with the dignity and respect they deserve. Not only have they never sued a single client, they go above and beyond in helping to get these people back on their feet by providing free services such as resume writing and interview skills.
Debt buying and collecting is a multi-billion dollar business and vital to the economy. Done correctly, it’s one of the best and safest ways to make stable investment returns.
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