American Banker: Chase Halts Credit Card Debt Sales
According to 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.