Consumer Finance Monitor

Ballard Spahr LLP
  • 4.9 (47)
  • BUSINESS NEWS
  • UPDATED WEEKLY

The Consumer Financial Services industry is changing quickly. This weekly podcast from national law firm Ballard Spahr focuses on the consumer finance issues that matter most, from new product development and emerging technologies to regulatory compliance and enforcement and the ramifications of private litigation. Our legal team—recognized as one of the industry's finest— will help you make sense of breaking developments, avoid risk, and make the most of opportunity.

  1. 3D AGO

    White House Executive Order on Scams and Fraud Takes Center Stage

    Today, we released a new episode of the award-winning Consumer Finance Monitor Podcast examining one of the most significant recent federal developments in the fight against scams and fraud: Executive Order 14390. Hosted by Alan Kaplinsky (the founder, chair for 25 years and now Senior Counsel in the Consumer Financial Services Group), the episode features returning guests Kate Griffin and Nick Bourke of the Aspen Institute, who previously joined the podcast to discuss Aspen's landmark report, United We Stand: A National Strategy to Prevent Scams.   Why This Episode Matters Scams and fraud continue to impose staggering losses on American households, businesses, and financial institutions. As discussed in the episode, the Aspen report framed scams as a "whole-of-society" problem requiring coordination across government, financial institutions, technology companies, telecom providers, and civil society. The new Executive Order appears to respond directly to that challenge by calling for: A coordinated federal anti-scam strategy Greater inter-agency cooperation Enhanced public-private information sharing Increased disruption of transnational scam networks Stronger victim restitution and recovery efforts More aggressive international enforcement tools, including sanctions and diplomatic pressure In many respects, the Executive Order may represent the first serious federal attempt to build a national strategy to combat scams. Key Themes Explored in the Episode During the discussion, Kate Griffin described the Executive Order as the "starting gun" in the race against scams—an important signal that the federal government is now treating scams as a national priority. Nick Bourke emphasized that success will require more than enforcement alone. He noted that regulators, financial institutions, telecom carriers, and digital platforms must be empowered to share information and intervene more effectively when suspicious activity is detected. The conversation also examined: Coordination Across Government The Executive Order relies heavily on the federal government's National Coordination Center framework to align agencies such as the Departments of Treasury, State, Justice, and Defense. Whether that coordination translates into meaningful operational change remains to be seen. 2. Information Sharing and Safe Harbors The guests explained that one of the largest barriers to scam prevention is the inability of private-sector participants to share threat intelligence quickly because of privacy, litigation, or antitrust concerns. Legislative or regulatory safe harbors may ultimately be necessary. 3. Targeting the Scam Business Model Rather than focusing solely on individual fraudsters, the discussion stressed the need to undermine the economics of scams—making them harder, riskier, and less profitable for criminal enterprises to operate. 4. Victim Restoration A particularly notable feature of the Executive Order is its call for a victim restoration program, which could help return seized assets to scam victims more efficiently. 5. Modernizing Law Enforcement Tools The guests also highlighted the need to modernize legacy federal databases such as FBI and FinCEN reporting systems, many of which were designed before today's high-speed digital scam environment. What Comes Next? While the Executive Order is an important milestone, the guests agreed that additional action will be needed from Congress, regulators, and the private sector. A successful anti-scam strategy will likely require: Clearer legal pathways for data sharing Better consumer reporting systems Greater use of AI and analytics International cooperation Faster prosecutions and asset recovery Ongoing public education efforts Bottom Line This episode makes clear that scams are no longer simply a consumer-protection issue, they are now a national economic security issue. The White House has taken an important first step, but whether the Executive Order produces meaningful results will depend on execution, follow-through, and sustained cross-sector collaboration. Consumer Finance Monitor is hosted by Alan Kaplinsky, Senior Counsel at Ballard Spahr, and the founder and former chair of the firm's Consumer Financial Services Group. We encourage listeners to subscribe to the podcast on their preferred platform for weekly insights into developments in the consumer finance industry.

    47 min

  2. 6D AGO

    Debt Sales 101 Mini-Series — Episode 6: After the Close: Compliance, Oversight, and Ongoing Risk

    In the final episode of our Debt Sales 101 mini-series, we focus on what happens after a debt sale closes and how sellers manage ongoing compliance, oversight, and risk. We discuss how regulators view debt sales as a managed activity rather than a clean exit and what that means for post-sale responsibilities.    From a regulatory perspective, sellers are expected to maintain reasonable oversight of buyers, particularly where consumer harm could arise. We discuss key post-close considerations, including monitoring complaints, credit bureau disputes, litigation trends, and regulatory developments, as well as the importance of maintaining an ongoing diligence process for repeat transactions.    We also address practical risk management issues, including handling buybacks, responding to buyer requests for documentation, and mitigating the impact of adverse court decisions. One important theme is that patterns in complaints and litigation can signal broader issues, and proactive monitoring can help prevent regulatory scrutiny or downstream risk.    The key takeaway from this final episode is that debt sales do not end at closing. They evolve over time. Successful programs treat debt sales as an ongoing process, with continuous feedback loops, documentation support, and compliance oversight. This approach helps protect brand, improve pricing, and strengthen long-term relationships with buyers.

    14 min

  3. APR 30

    The White House AI Framework: Ambition, Preemption, and Uncertainty Ahead

    In the episode of Consumer Finance Monitor Podcast being released today, we explore the White House's National Policy Framework for Artificial Intelligence published on March 20, 2026. This new framework represents the Administration's most concrete attempt yet to shape the future of AI governance in the United States. While it does not carry the force of law, it offers a revealing look at the policy direction the Administration hopes Congress will take. Joining our host, Alan Kaplinsky (founder, chair for 25 years and now Senior Counsel of the Consumer Financial Services Group), for this discussion were Charlie Bullock (Senior Research Fellow at The Institute for Law and AI), Kristian Stout (Director of Innovation Policy at the International Center for Law & Economics), and Greg Szewczyk, head of Ballard Spahr's Privacy and Data Security Group. Below are the key takeaways from the conversation. From Principles to Policy: A Clear Shift One of the most striking aspects of the new framework is how sharply it departs from last year's more principles-based "White House AI Action Plan." That earlier effort emphasized risk awareness, governance principles, and a balanced approach to innovation and regulation. On October 30, 2025, we produced a webinar entitled: "AI in Financial Services: Understanding the White House Action Plan – and What It Leaves Out", which featured the same speakers as the podcast being released today, plus Dean Ball, former White House senior advisor and one of the architects of the White House AI Action Plan. This webinar was then re-purposed into a two-part podcast series released on December 4 and 10, 2025. By contrast, the new framework is short, just a few pages, light on detailed policy prescriptions, and heavily focused on limiting regulation, particularly at the state level. As Charlie Bullock observed, the document is notable as much for what it doesn't include as for what it does. Rather than proposing robust federal oversight, it largely outlines areas where the government should refrain from acting. Federal Preemption Takes Center Stage The framework's most consequential and controversial feature is its strong endorsement of federal preemption of state AI laws. It proposes broad preemption in areas such as: ·        AI development ·        Liability for third-party misuse of AI systems ·        Restrictions on AI-enabled activities that would otherwise be lawful At the same time, it preserves certain state authorities, including: ·        Zoning and infrastructure decisions ·        State use of AI ·        "Generally applicable" laws (e.g., fraud, consumer protection, and child safety) This raises a critical question: How meaningful are these carve-outs? As we discussed, broadly worded exceptions, particularly for state "police powers", could significantly limit the practical reach of federal preemption and potentially preserve a patchwork of state regulation. The Patchwork Problem Isn't Going Away Even with federal action, the reality is that state-level AI regulation is already underway. Laws like Colorado's AI Act and emerging chatbot regulations illustrate how quickly states are moving. Greg Szewczyk noted that, unlike privacy law, where states have largely converged around similar frameworks, AI regulation could diverge in more fundamental ways. Without a consistent federal baseline, companies may face: ·        Increased compliance costs ·        Operational complexity ·        Uncertainty in deploying AI tools across jurisdictions Interestingly, some state regulators (including Democrats) may ultimately favor a well-crafted federal preemption regime if it provides clarity without sacrificing core protections. Innovation First—But Who Benefits? The framework strongly emphasizes: ·        AI infrastructure buildout ·        Faster permitting ·        Regulatory sandboxes ·        Access to federal datasets Kristian Stout highlighted that these priorities could accelerate innovation but they are not automatically startup-friendly. Large incumbents may benefit disproportionately due to: ·        Greater access to compute resources ·        Established compliance capabilities ·        Ability to absorb regulatory costs This tension between promoting innovation and preserving competition remains unresolved. Child Safety, IP, and Free Speech: More Questions Than Answers The framework touches on several critical areas but leaves key details unsettled: Child Protection It endorses tools like age verification and parental controls but offers little guidance on implementation. Compared to proposals like the Kids Online Safety Act (KOSA), the framework appears less aggressive and more preemptive of state innovation. Intellectual Property Rather than legislating, the framework defers to the courts on issues like: ·        Fair use in AI training ·        Output infringement This "wait and see" approach avoids premature policymaking but prolongs uncertainty. Free Speech A novel component aims to prevent government "jawboning" of AI providers; i.e., informal pressure to shape outputs. While rooted in legitimate First Amendment concerns, its ultimate scope and constitutionality remain unclear. No New AI Regulator—For Now The framework rejects the creation of a centralized AI regulator, instead relying on existing agencies. This approach has clear advantages: ·        Agencies already understand their sectors ·        Avoids bureaucratic duplication But it also raises concerns: ·        Limited technical expertise ·        Resource constraints ·        Inconsistent oversight across agencies As discussed, a hybrid model, combining agency expertise with centralized technical guidance, may ultimately emerge. Will Anything Actually Pass? Perhaps the most sobering takeaway: major AI legislation is unlikely in the near term. As Charlie Bullock put it bluntly, companies should not invest significant resources preparing for this specific framework. The political reality is: ·        Deep divisions within and between parties ·        Limited legislative bandwidth before the midterms ·        Competing proposals with very different philosophies That said, elements of the framework may still surface incrementally in future bills. The Anthropic "Mythos" Moment: A Glimpse of What's Coming While not covered by the White House framework, our discussion closed with a timely real-world example: reports about Anthropic's advanced AI model, "Claude Mythos," capable of identifying and exploiting software vulnerabilities at scale. Whether somewhat overstated or not, the episode highlights a broader truth: ·        AI is accelerating existing capabilities, not inventing entirely new ones ·        The pace of advancement is increasing rapidly ·        Both risks and defensive tools are evolving simultaneously As Kristian Stout noted, this is less a radical break than a compression of time and accessibility, making powerful capabilities available faster and to more people. Final Thoughts The White House AI Framework signals an important shift in U.S. policy thinking: ·        Away from abstract principles ·        Toward concrete (if still incomplete) legislative direction It prioritizes innovation, federal uniformity, and limited regulation but leaves fundamental questions unresolved. For industry participants, the key takeaway is not immediate compliance but continued vigilance. The direction of travel is becoming clearer, even if the destination remains uncertain. We will closely continue to monitor developments closely on our blog, webinars and podcast shows. We will soon be releasing podcast shows with (1) Professor Mark Geistfeld of NYU Law School about ALI's relatively new project entitled "Principles of the Law Pertaining to Civil Liability for Artificial Intelligence" and (2) with Professor David Hoffman of the University of Pennsylvania Law School about an article he co-authored with the CEO of the American Arbitration Association entitled "Agentic Commerce Needs Legal Infrastructure, and the Courts are Coming." Consumer Finance Monitor is hosted by Alan Kaplinsky, Senior Counsel at Ballard Spahr, and the founder and former chair of the firm's Consumer Financial Services Group. We encourage listeners to subscribe to the podcast on their preferred platform for weekly insights into developments in the consumer finance industry.

    1h 6m

  4. APR 27

    Debt Sales 101 Mini-Series — Episode 5: Closing the Deal: Key Contracting and Transaction Issues

    In Episode 5 of our Debt Sales 101 mini-series, we turn to contracting and closing, where legal structure, regulatory expectations, and commercial terms come together to define the transaction. We discuss the key provisions in a debt purchase and sale agreement and how those provisions allocate risk between buyers and sellers.    From a regulatory perspective, the contract is more than a commercial document. It is also an artifact that regulators expect to review. We explain how representations and warranties, indemnification provisions, buyback mechanics, and audit rights are used to address regulatory risk, confirm the scope of assets being transferred, and establish expectations around compliance and oversight. These provisions are central to demonstrating that both parties have appropriately considered legal and regulatory requirements.    We also discuss how contractual terms can directly impact pricing and execution. Restrictions on collection activity, credit reporting, or other post-sale actions can significantly affect the value of a portfolio. In addition, we cover key transaction mechanics such as data transfers, cutoff timing, and how contracts are introduced during the bidding process to align commercial and risk considerations early.    The key takeaway from this episode is that a well-drafted purchase and sale agreement does not just enable the transaction. It mitigates risk. By aligning regulatory expectations with commercial objectives, parties can create repeatable and scalable debt sale programs.

    17 min

  5. APR 23

    NYC DCWP at the Forefront of Consumer Protection: A Conversation with Commissioner Sam Levine

    In this episode of the Consumer Finance Monitor Podcast, host Alan Kaplinsky (founder, former chair for 25 years and now Senior Counsel) had the pleasure of speaking with Sam Levine, Commissioner of the New York City Department of Consumer and Worker Protection (DCWP), about the agency's evolving role as one of the most active local consumer protection regulators in the country. Important note: This podcast was recorded prior to DCWP's April 8, 2026 release of its proposed "click-to-cancel" rule addressing subscription practices. Alan recorded a description of the proposed rule which is at the end of the recording. We also wrote a separate blog about that significant development. A Local Regulator with National Influence From the outset, Commissioner Levine emphasized that DCWP is not simply a municipal agency focused on traditional licensing and enforcement, but rather a modern regulator tackling complex consumer protection issues that increasingly mirror those addressed at the federal level. "Local enforcement can be incredibly impactful—we're often closest to consumers and can move quickly to address emerging harms." He noted that New York City's scale and diversity make it a uniquely important testing ground for innovative consumer protection strategies. Executive Orders Driving Enforcement Priorities A key backdrop to DCWP's current activity is a pair of mayoral directives—Executive Order 9 and Executive Order 10—issued by New York City Mayor Zohran Mamdani on January 5, 2026 (shortly after he took office) which we have discussed in a prior blog post. These Executive Orders signal a clear policy direction to fulfill his campaign promise to make life more affordable for everyday New Yorkers: an intensified focus on consumer protection, particularly in areas involving deceptive practices, hidden or "junk" fees, and recurring payment models. Executive Order 10, in particular, directs DCWP to prioritize enforcement against "subscription traps" and misleading recurring charge practices—laying the groundwork for the Department's subsequent proposed "click-to-cancel" rule published on April 8, 2026. Commissioner Levine made clear that these directives are not merely aspirational, but are actively shaping the agency's enforcement and rulemaking agenda: "We're aligning our work with the Mayor's directive to go after practices that frustrate consumers and undermine fair competition." Enforcement Priorities: Targeting Deceptive Practices A central theme of our discussion was DCWP's aggressive focus on deceptive and unconscionable trade practices, particularly in areas where consumers are most vulnerable. Commissioner Levine highlighted the agency's work in combatting: 1.     Hidden fees and misleading pricing practices 2.     Predatory lending and financial services abuses 3.     Worker exploitation in the gig economy 4.     Emerging digital marketplace risks "We're focused on conduct that distorts consumer choice—where people think they're getting one thing but end up locked into something very different." He underscored that transparency and fairness are guiding principles behind DCWP's enforcement agenda. Final Debt Collection Rules: A Significant Regulatory Development We also discussed DCWP's recently finalized debt collection regulations, which we have analyzed in prior blog coverage. These rules represent one of the most significant updates to New York City's debt collection framework in years. Commissioner Levine emphasized that the rules are designed to modernize existing requirements and address evolving industry practices, including the increased use of digital communications. "The goal is to ensure that debt collection practices keep pace with how consumers actually communicate today, while maintaining strong protections against harassment and abuse." Among other things, the rules clarify permissible communications, reinforce substantiation and disclosure requirements, and strengthen consumer protections in line with broader trends seen at the federal level. These rules, which go effective later this year, apply not only to third-party collectors and buyers of consumer debt, but also to creditors of consumers whenever the debtor resides or is located in New York City. Collaboration with Federal and State Regulators Drawing on his prior experience at the Federal Trade Commission as Director of the Bureau of Consumer Protection, Levine discussed the importance of coordination across jurisdictions. "There's a real opportunity for federal, state, and local regulators to work together and reinforce one another's efforts." He explained that DCWP frequently collaborates with the FTC, the New York State Attorney General's Office, and other enforcement bodies, particularly in cases involving multi-state or national conduct. At the same time, he made clear that local regulators can lead: "We don't have to wait. If we see harm affecting New Yorkers, we're going to act." Rulemaking as a Strategic Tool In addition to enforcement, Levine emphasized DCWP's increasing use of rulemaking to shape market behavior proactively. "Rules give clarity to businesses and protections to consumers—they're an important complement to case-by-case enforcement." He noted that clear rules can help level the playing field for companies that are already trying to do the right thing. Focus on Financial Services and Marketplace Innovation The conversation also explored DCWP's interest in financial services, particularly as new products and delivery models emerge. Levine pointed to risks associated with: 1.     Fintech innovations that may outpace regulatory frameworks 2.     Online platforms that obscure key terms or pricing 3.     Products that rely heavily on consumer inertia or behavioral biases "Innovation can be a good thing—but it can't come at the expense of transparency or fairness." Practical Takeaways for Industry For companies operating in or serving New York City, the message from DCWP is clear: 1.     Expect active enforcement of deceptive practices 2.     Monitor local regulatory developments, including mayoral directives and rulemaking initiatives 3.     Prioritize clear disclosures and consumer-friendly processes 4.     Anticipate continued focus on digital and subscription-based business models "Our goal is straightforward: markets should work for consumers, not against them." Looking Ahead Although our discussion did not cover it because it happened after our podcast was recorded, DCWP has since proposed a significant new rule targeting subscription practices—further underscoring the agency's commitment to addressing modern consumer risks and reflecting the policy direction set by Executive Order 10. Given Commissioner Levine's leadership and experience, including his prior role at the FTC, DCWP is likely to remain at the forefront of consumer protection innovation. Consumer Finance Monitor is hosted by Alan Kaplinsky, Senior Counsel at Ballard Spahr, and the founder and former chair of the firm's Consumer Financial Services Group. We encourage listeners to subscribe to the podcast on their preferred platform for weekly insights into developments in the consumer finance industry.

    58 min

  6. APR 20

    Debt Sales 101 Mini-Series — Episode 4: The Regulatory Landscape for Debt Sales Today

    In Episode 4 of our Debt Sales 101 mini-series, we focus on the current regulatory landscape governing debt sales and how recent developments are shaping the market. We discuss how oversight has become more fragmented, more active, and increasingly driven by state regulators and attorneys general, and how that shift is affecting both buyers and sellers.    A central theme in this episode is that regulation is no longer a background consideration. It is a primary driver of pricing, deal structure, and buyer participation. We walk through key regulatory themes, including the importance of documentation and chain of title, increased product-specific scrutiny, and the growing focus on consumer outcomes and potential UDAAP risk. Regulators are increasingly looking upstream at sellers and their diligence, documentation, and oversight practices, rather than focusing solely on collectors.    We also discuss how these regulatory developments are affecting the economics of debt sales. Changes at the state level, as well as evolving rules in areas such as medical debt and student loans, have introduced additional compliance complexity and, in some cases, reduced pricing or limited buyer participation. At the same time, emerging product areas continue to evolve as buyers assess regulatory risk and opportunity.  The key takeaway from this episode is that understanding the regulatory environment upfront is critical to executing a successful debt sale. A well-structured process, supported by strong diligence, documentation, and contractual protections, is essential to managing risk and achieving expected value.

    18 min

  7. APR 16

    "True Lender" Doctrine Back in the Spotlight: Key Takeaways on OppFi v. Hewlett Tentative California Superior Opinion

    The latest episode of the Consumer Finance Monitor Podcast being released today tackles one of the most consequential developments in bank–fintech litigation in recent years: the Los Angeles Superior Court's tentative decision in Opportunity Financial, LLC v. Hewlett (read more here). This case squarely addresses the long-debated "true lender" doctrine which has for decades bedeviled banks and Fintechs and "bricks and mortar" non-banks that have entered into joint ventures with one another to engage in interstate lending programs which take advantage of interest rate exportation rights afforded to banks. After applying application California and federal law, the Court granted summary judgment to OppFi and against the California Department of Financial Protection and Innovation (DFPI) which unsuccessfully maintained that OppFi is the true lender and not OppFi's partner, FinWise Bank. In this episode, host Alan Kaplinsky, founder and former chair of the Consumer Financial Services Group and now Senior Counsel, is joined by two leading voices with sharply contrasting perspectives: Professor Emeritus Arthur Wilmarth, a prominent critic of bank–fintech partnerships, and Ballard Spahr Senior Counsel Ron Vaske, who regularly advises banks and fintech companies on structuring such programs. Their discussion offers a deep and balanced exploration of the court's reasoning and its broader implications.   A Tentative Decision with Significant Implications At the center of the case is a partnership between OppFi, a fintech platform, and FinWise Bank, a Utah-chartered, FDIC-insured institution. The program allowed FinWise to originate consumer loans at interest rates permissible under Utah law and export those rates nationwide under Section 27 of the Federal Deposit Insurance Act. The DFPI challenged the arrangement, arguing that OppFi—not FinWise—was the "true lender," which would subject the loans to California's 36% interest rate cap. In a tentative ruling, the court rejected the DFPI's position and granted summary judgment in favor of OppFi. The court emphasized traditional indicia of lending authority, including: •           FinWise's role in funding the loans •           Its control over underwriting criteria •           Its retention of a 5% ownership interest •           Its ongoing oversight of compliance and marketing Critically, the court also relied on the longstanding California law principle that usury is determined at the inception of the loan. (See the discussion below.) Because FinWise originated the loans, the court concluded they were not rendered unlawful by OppFi's subsequent purchase of a 95% participation interest giving which gave it a predominant economic interest.   Competing Views on "True Lender" The podcast highlights a fundamental divide in how courts and commentators approach the true lender doctrine. Professor Wilmarth argues that the court failed to meaningfully engage with the "predominant economic interest" test, which focuses on who bears the majority of the economic risk and reward. In his view, OppFi's 95% participation interest suggests that it—not the bank—is the real lender in substance. He also raises broader concerns about whether such arrangements undermine state usury laws and expose consumers to excessively high-cost credit. Ron Vaske, by contrast, emphasizes the legal and structural realities of the transaction. He underscores that FinWise is the named lender, funds the loans, and remains legally responsible to borrowers. From this perspective, the allocation of economic interests after origination should not redefine the identity of the lender or override federal law permitting rate exportation.   The Role of "Valid When Made" Another key related theme explored in the episode is the "valid when made" doctrine—the principle that a loan that is lawful at origination remains lawful after assignment. The court's reliance on this concept reinforces the importance of determining lender status at the moment the loan is made, rather than based on subsequent transfers or participations. The discussion also touches on the interplay between state and federal law, as well as the continuing relevance of regulatory interpretations following the Supreme Court's decision in Loper Bright, which curtailed Chevron deference.   What Comes Next? It is important to note that the court's ruling is still tentative. In accordance with California procedure, OppFi must submit a proposed final opinion and order to the Court. If adopted, an appeal by the DFPI appears likely—potentially setting the stage for further appellate guidance on the true lender doctrine in California and beyond.   Why This Matters This case is part of a broader and ongoing policy debate: ·                 Supporters of bank–fintech partnerships argue they expand access to credit and operate within well-established federal banking frameworks. ·                 Critics contend they can be used to circumvent state consumer protection laws, particularly interest rate caps. As the regulatory and judicial landscape continues to evolve, OppFi v. Hewlett represents a significant—and closely watched—development. It may be significant to note that, unlike several other states, California does not have a statute stating that the holding of a "predominant economic interest" in a loan makes the holder the true lender  Be sure to listen to the full podcast episode for a deeper dive into the case and the competing legal and policy perspectives shaping the future of bank–fintech partnerships. Consumer Finance Monitor is hosted by Alan Kaplinsky, Senior Counsel at Ballard Spahr, and the founder and former chair of the firm's Consumer Financial Services Group. We encourage listeners to subscribe to the podcast on their preferred platform for weekly insights into developments in the consumer finance industry.

    1 hr

  8. APR 13

    Debt Sales 101 Mini-Series — Episode 3: Who Buys Debt and How Deals Are Structured

    In Episode 3 of our Debt Sales 101 mini-series, we discuss who buys charged-off debt and how debt sale transactions are typically structured. We explain how different buyers specialize in different asset classes and how buyers evaluate portfolios from legal, regulatory, and commercial perspectives.    From a buyer's perspective, purchasing debt is not just a credit decision. Buyers are underwriting legal and regulatory risk as much as they are underwriting expected recoveries. In this episode, we discuss the key factors buyers consider, including transferability and chain of title, collectability and applicable statutes of limitation, licensing requirements, and the broader regulatory environment that affects how accounts can be collected. These factors often drive pricing and determine whether certain buyers will participate in a particular sale process.    We also discuss how sellers identify the right buyer and why working with well-capitalized and experienced buyers can have a significant impact on execution and pricing. From there, we walk through the primary transaction structures used in the market, including spot sales and forward flow arrangements, and discuss how risk allocation, repricing risk, and portfolio segmentation are addressed in these structures.    The key takeaway from this episode is that debt sales are not one-size-fits-all transactions. The identity of the buyer, the structure of the deal, and the allocation of regulatory and commercial risk all directly affect pricing, execution, and long-term success of a debt sale program. In the next episode, we turn to the regulatory landscape and discuss how recent regulatory developments are shaping the debt sale market.

    14 min
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About

The Consumer Financial Services industry is changing quickly. This weekly podcast from national law firm Ballard Spahr focuses on the consumer finance issues that matter most, from new product development and emerging technologies to regulatory compliance and enforcement and the ramifications of private litigation. Our legal team—recognized as one of the industry's finest— will help you make sense of breaking developments, avoid risk, and make the most of opportunity.

Information

  • Creator
    Ballard Spahr LLP
  • Years Active
    2018 - 2026
  • Episodes
    100
  • Rating
    Clean
  • Copyright
    ©2022 Ballard Spahr LLP
  • Show Website
    Consumer Finance Monitor

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