Wilmington, DE, November 04, 2015 --(PR.com
)-- Global Debt Registry (“GDR”), the first independent repository for storing and tracking consumer loan documentation and collection rights, is addressing a pressing and costly need among banks and financial institutions for consumer transparency when it comes to debt information. The benefit of consumer transparency of loan documentation through GDR’s DebtLookup SM platform extends to all parties in the ecosystem including banks, consumers and legitimate debt collectors. Financial institutions adopting the Debt Lookup Platform will utilize more safe and sound practices aimed at eradicating unlawful phantom and zombie debt with a level of transparency historically missing from the marketplace. With proven transparency, financial institutions are able to reduce reputational risk, reduce the risk of supervisory action by regulators, and protect consumers from harm.
A feature of Debt Lookup SM, the Account Extinguishment Report, provides critical data which can be used to stop collection activity involving settled, cancelled or closed accounts. The Account Extinguishment Report offers significant savings and risk reduction to creditors and their collection agencies by simplifying the response to consumer inquiries and disputes. Additionally, it reduces the risk of unlawful or abusive collection activity while enhancing the customer experience throughout the lifecycle of a debt. It also helps streamline the Credit Bureau dispute process.
The lack of transparency of account information provided to consumers during debt collection remains one the leading cited consumer complaints to the CFPB. The complaints highlight the industry’s difficulties at tracking account information for the lifecycle of an account and the dire need for improved transparency and documentation. Harmful debt collection situations which concern regulators include:
· Zombie Debt: Debt collection which seems to rise from the dead and stalk a consumer relentlessly. It could be debt which is an old debt that was previously paid, discharged in bankruptcy, or otherwise extinguished and now there is collection on the debt years after the fact. Or it could be debt where there has not been a collection for extended periods of time and seemingly out of nowhere collection efforts begin on the account.
· Phantom Debt: The attempt to collect real, extinguished, or zombie debt by an entity which has no lawful right to collect on the debt. Collection of the debt usually includes unlawful threats and intimidation to pay the debt.
GDR’s DebtLookup SM platform mitigates these threats with proven transparency to key industry stakeholders including creditors, collection agencies and consumers as to who owns an account, who has the right to collect on an account or demand access to account documentation, and whether the account is still outstanding or has been extinguished. Financial institutions are also able to reduce risk and costs by offering consumers and collection agencies an on demand self-service option to access account information. This improves customer service, reduces risk to consumers and collection agencies, and enhances consumer trust in the transparency, integrity and fairness of the collection process regardless of whether the accounts are sold, in collections, or extinguished.
“Recent enforcement actions by the CFPB and other regulators underscore the need for stronger document governance and account transparency in the servicing and collection of debt,” said Mark Parsells, CEO of Global Debt Registry. “With increased regulatory scrutiny of the document integrity underpinning the industry, our process with our Debt Lookup system protects the reputations of banks, and arms consumers with a permanent record of settlement to combat disputes and harmful debt collection practices.”
“As debt is sold, servicing is moved, or accounts are closed, the paper trail often becomes difficult to track on all ends. Debt Lookup and the Account Extinguishment Report benefits banks, creditors, debt collectors and consumers with account clarity. Additionally, it protects all parties from reputational damage or legal challenges,” Parsells continued.
To learn more about Debt Lookup SM and the Account Extinguishment Report, visit https://www.debtlookup.com/, and to learn more about how Global Debt Registry is working with financial institutions, creditors and debt collectors to organize and track debt information, visit www.globaldebtregistry.com.
About Global Debt Registry
GDR is the SMARTsm document governance solution that enables Financial Institutions to analyze, organize and control documents to lower risk and comply with regulations. GDR unifies document silos and works with existing data architectures to help financial intuitions capture, manage and share this information with authorized users, vendors and consumers. By applying GDR’s proactive document governance, Financial Institutions can ensure that their documents are complete, available, protected and managed through their entire lifecycle. GDR enables consumer account transparency of documentation and centralized enterprise level document reporting. GDR’s turnkey solution is customizable to business needs and more cost effective than internally built solutions. GDR is the only debt registry for non-mortgage consumer debt.
Global Debt Registry was identified by American Banker as one of the strongest new ideas at Finovate last fall. Clients include large creditors as well as debt buyers and their collection agencies. (www.globaldebtregistry.com)
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