Credit Reporting on Delinquent Loans

News on the delinquency front keeps getting worse. One of the biggest risks in delinquency is the failure to properly report an account to the credit reporting agencies. The growing issue of managing credit reporting is more than just an internal struggle at your institution. In the most recent CFPB statistics, credit reporting accounted for over 70% of consumer complaints! It is receiving added attention from both examiners and specially trained “consumer protection” attorneys. In fact, the CFPB has linked credit reporting irregularities with lapses in Equal Credit Opportunity Act compliance and promises swift action.

It appears there is a perfect storm on the horizon between delinquency control and compliance, and you need to be prepared! From policies and procedures to quality assurance and organizational charts, this essential function impacts every financial institution and there are basic steps you can take to increase efficiency, reduce risks, and calm your compliance nerves.