American Banker, Chase has quit selling credit card debt in anticipation of increased
regulatory scrutiny. This comes as no surprise given
California's lawsuit against Chase as well as the
recent rumblings at the OCC. Ever since the mortgage crisis, people have been paying more
attention to Wall Street's machinations. When the bundling and selling
of debts becomes more like a
Rube Goldberg device than a coherent financial instrument, it's only a matter of time before
things go sideways.
Even with Chase apparently backing off and the regulatory machine possibly
ramping up, debt buyers still have plenty of avenues to obtain bundles
of debt. It is important that people continue to question and fight collection
lawsuits. If we do not hold the industry accountable, then we are forced
to wait for the regulators to get the job done. While the CFPB makes me
hopeful for a new regulatory environment, that future has not yet arrived.