Creditors and consumers alike get excited about originations. But credit losses are a financial services reality, and when things go south with a customer the initial excitement yields to more serious consequences when that customer starts missing payments and defaults on the credit obligation. Numerous federal and state laws and regulations impact the management of accounts receivable and creditors’ and servicers’ routine and default servicing, collection, and recovery efforts. Those laws and regulations impose requirements and limitations not just on creditors and servicers, but on collection agencies, collection law firms and secondary market debt buyers. From licensing to collection conduct rules to recovery of collateral and deficiency balances, the web of federal and state laws that apply to debt collection is complex – and the consequences for non-compliance can be serious.
Our attorneys who focus on this practice area have seen first-hand the evolution of collection practices and strategies, and the federal and state regulatory landscape.
7037 Ridge Road, Suite 300
Hanover, Maryland 21076
