Help Center

ABI Blog Exchange

Instant Apps could give banks a better option for transitioning customers from a quick and easy account opening to a more robust banking experience.

Read More from: BankThink

5 hours 36 min ago
Receiving Wide Coverage ... Banking's Identity Crisis: Banks are in the midst of a period of upheaval, as the industry seeks to reinvent itself amid huge changes in consumer preferences, banking technology and the regulatory landscape. Fintech disruptors will probably be subsumed into the larger banking universe, although their ideas will live in. Ultimately, the old ways of banking will die only when those banks that lived through the financial crisis move on. ...

Read More from: BankThink

5 hours 49 min ago
Chemical manufacturer Vertellus Specialties Inc. filed for chapter 11 protection and is planning to auction its business. The Wall Street Journal has the Daily Bankruptcy Review article here. (Daily Bankruptcy Review is a daily newsletter with comprehensive coverage and analysis of emerging and in-progress insolvencies and turnarounds. For a two-week trial, visit, scroll to the bottom and click “try for free.”) Hercules Offshore Inc. is planning to file for chapter 11 protection again with plans to liquidate less seven months after it emerged from bankruptcy, DBR reports in WSJ. Seattle-based Great Pacific Seafoods is shutting down and will liquidate in bankruptcy, the Seattle Times reports. Takata Inc. said it won’t use bankruptcy to mitigate liabilities, Bloomberg reports.

Read More from: Bankruptcy Beat

7 hours 29 min ago
Last week the UK Government issued a consultation document on changing UK insolvency legislation to enable distressed companies to obtain a moratorium for up to three months, with the possibility of an extension, under the supervision of an insolvency practitioner. The moratorium would prevent all creditors, including secured creditors, from taking any enforcement action against such companies without first applying to court for permission to do so. This follows a briefing paper published by R3 last month suggesting a similar moratorium process.

Read More from: eSQUIRE Global Crossings

8 hours 29 min ago
Differing Priorities By Donald L. Swanson Non-bankruptcy cases usually have a different priority than bankruptcy cases: namely painting a picture v. maximizing value. In non-bankruptcy cases, an event or series of events occur, and the focus is, typically, on (i) painting a clear picture of what happened, and (ii) assigning or absolving liability accordingly. In non-bankruptcy cases, the picture to be painted might be: –What happened when a collision occurred at the intersection of Main and 38th Streets? –What happened when an invasive cervical cancer diagnosis is preceded by five consecutive years of negative Pap test results? –What happened when a single-engine plane crashes in a cornfield? There is no particular urgency in non-bankruptcy cases to paint the picture quickly. A leisurely-timed painting process is usually sufficient. So, discovery takes a long time. And mediation often happens as discovery winds down. In business bankruptcy cases, by contrast, painting an accurate picture is certainly important. But the primary aim is something different: it’s to preserve and maximize value of the business and its assets. If value is lost or destroyed, the bankruptcy case is a failure. A Bankruptcy Failure Here’s an example of bankruptcy failure: –A production facility requires $120 million financing to construct and begin production

Read More from: Mediatbankry

10 hours 5 min ago
CBS reports “Overdraft fees are raking in billions of dollars for the banking industry. But who’s paying them? Predominantly a tiny subset of consumers: young, working in lower-wage jobs and heavy users of debit cards. Surveying 304 individuals who reported paying more than $100 in overdraft fees during the past year, the Pew Charitable Trust found that the bulk — 67 percent — of those paying hefty overdraft charges are working but earning less than $50,000 annually. Roughly one-third earn $25,000 or less. Their preferred method of payment is a debit card, and more than a third of them are under age 36. Nearly a quarter of those surveyed said they paid more than a week’s wages in overdraft fees in the past year, with one in four reporting that the charges added to $300 annually or more. Nearly one in five of these individuals said overdrafts cost them $500 or more last year.5 Ways to Cut Costly Overdraft Fees… The post 5 Ways to Cut Costly Overdraft Fees appeared first on Diane L. Drain - Phoenix Bankruptcy & Foreclosure Attorney.
1 day 51 min ago
It has taken several months, but the Russian Particulars of Claim and Ukraine's Defence (akin to complaint and answer in U.S. civil procedure) have now been filed. Distilled to its essence, Ukraine's response, as the Financial Times notes, is that "if you wanted your money back you should not have invaded our country." Or as Ukraine's lawyers put it in the Defence: "The [Russian] claim forms part of a broader strategy of unlawful and illegitimate economic, political and military aggression ... aimed at frustrating the will of the Ukrainian people to participate in the process of European integration." 

Read More from: Credit Slips

2 days 4 hours ago
Texas has some of the strongest homestead protections in the country.   It was also one of the last states to allow home equity lending.   When it reluctantly amended its Constitution to allow home equity lending, it included some draconian provisions for lenders who didn't follow the rules, allowing forfeiture of principal and interest in some cases.   A lender's failure to provide a timely release after the borrower repaid the loan sparked a spirited disagreement among the Texas Justices as to whether to apply the Constitutional provision as written or to use common sense.   In a 7-2 decision, "common sense" and the lender prevailed. Garofolo v. Ocwen Loan Servicing, LLC., No. 15-0437 (Tex. 5/20/16).    You can read the opinion here and the dissent here.What Happened Teresa Garofolo took out a home equity loan for $159,700 in 2010.   She paid the loan off in April 2014.   While the lender recorded a release of lien, it did not provide her with a recordable release as required her loan documents.    She made demand upon Ocwen to provide her with the required paperwork.   When they failed to comply within sixty days, she filed suit in federal court seeking forfeiture of all principal and interest under the Texas Constitution.    The District Court dismissed the case.   When Ms.
2 days 21 hours ago
June 25, 2016 Google announced that it would ban ads for payday lenders (and similar services) starting on July 13. In a statement, David Graff, the company’s director of global product policy wrote:
We will no longer allow ads for loans where repayment is due within 60 days of the date of issue. In the U.S., we are also banning ads for loans with an APR of 36 percent or higher. When reviewing our policies, research has shown that these loans can result in unaffordable payment and high default rates for users so we will be updating our policies globally to reflect that.
Graff added that the new policy “is designed to protect our users from deceptive or harmful financial products,” and will still leave room for companies to advertise mortgages, car loans, student loans, and credit cards.  Read more… As additional information read the article “Feds Payday lender charged 700% interest”… read more
3 days 59 min ago
“Charge off” is accounting jargon for the formal determination that the creditor is no longer treating its claim against you as an asset.   It permits the creditor to take a “wholly worthless bad debt” deduction on its taxes under Sec. 1244 of the IRC.    It does not mean the creditor has released its claim and it cannot pursue you.  Any payments received after the debt is charged off are treated differently for tax purposes.   And that its claim against the reorganized debtor is not on its balance sheet above the line. What it does mean is that the creditors still retains the right to collect the full amount of debt and have a variety of options available to them. Depending upon the situation, the creditor may have internal collections staff pursue collection or sell it to an external collector, or the creditor may elect to sue on the entire debt.
3 days 19 hours ago
Court Looks to the Knowledge of the Transferees in Madoff
4 days 13 min ago
Sometimes a debtor’s rights in bankruptcy get affected by an overly aggressive Trustee.  The Trustee gets a fee and a percentage of any assets administered.  The debtor is seeking to keep any and all of his assets free and clear from the long arm of the Trustee.  This blog today deals with the personal injury+ Read More The post Bankruptcy Exemption For Personal Bodily Injury Applies In Illinois appeared first on David M. Siegel.
4 days 2 hours ago
In addition to credit risk from leveraged loans and other types of assets, an added worry for participations is how they would be treated in a failure of the originating bank.

Read More from: BankThink

4 days 3 hours ago
Zombie debt may have met its match. New California law prohibits a debt buyer from bringing suit on a claim that is barred by the statute of limitations, effective January 1, 2014.   Civil Code § 1788.56. Up until now, a creditor was free to sue on a debt that was older than the statute of limitations.  The burden was on the person sued to claim the protection of the statute. Too often, the debtor didn’t know that and the collector got a judgment on debt that should have been unenforceable. No longer, as to purchased, charged-off debt. Wait, wait, there’s more. Required information about debt A debt buyer may not even contact a person about a consumer debt unless the debt buyer has in its possession
  1. Proof that it is the sole owner of the debt
  2. Balance of the debt at charge off and a breakdown of charges added since charge off
  3. Date of default or last payment
  4. Name, address and account number used by the original creditor
  5. Name and address of the account debtor from the original creditor’s records
  6. Name and address of all entities that purchased the debt after charge off
Scope of consumer protection
4 days 4 hours ago
Texas’s Goodrich Petroleum Corp. will ask a judge in Houston on Tuesday to sign off on its bankruptcy-exit plan, one of the final steps in concluding the oil and gas producer’s bankruptcy case. Houston-based Goodrich, which sought bankruptcy protection after seeking to cut its debt as oil prices continued to tumble, will ask for approval of a deal that would erase $400 million in debt from its books through a swap with a group of investors that own bonds that the company issued last year. The Goodrich bondholders, who include Franklin Advisors Inc., Penn Capital Management and Jefferies LLC, have agreed to forgive $175 million in debt in exchange for ownership of the company. The company filed for bankruptcy last month, having already begun the process of formally soliciting creditor votes in support of this plan. The chapter 11 filing capped a year-long effort to reduce leverage and raise liquidity to weather low prices. Also Tuesday, New York supermarket chain Fairway Group Holdings Corp. will ask for final permission on a $55 million bankruptcy financing package that allows the company to keep operations going as it restructures. The company has called the financing, which it received preliminary access to earlier this month, a “cornerstone” of its reorganization. Without the fresh financing, Fairway’s ability to keep its doors open would be in “serious jeopardy,” the company said.

Read More from: Bankruptcy Beat

4 days 4 hours ago
Well before the mobile payments explosion, incumbents were already focused on how to respond to nonbanks "piggybacking" on banks' payments infrastructure. As the consultant behind a 1994 banking industry report on the threat put it, "there is no time for delay."

Read More from: BankThink

4 days 5 hours ago
Receiving Wide Coverage… Not Without a Trace: Security researchers have found evidence linking North Korea to three recent attacks on Asian banks — in the Philippines in October, Vietnam in December and the $81 million theft from the central bank of Bangladesh in February. They said in each event the attackers used a piece of rare but identical code seen in just two cases before: the Sony hack in 2014 and one on South Korea banks...

Read More from: BankThink

4 days 6 hours ago
What would you do if you got a tip there was an arrest warrant out because you hadn’t paid one of your bills?
  1. Scrape up the money any way you can?
  2. Get out of town?
  3. Laugh?
The right answer is “laugh”. In the US we don’t arrest people for owing money they can’t pay. Yet scammers are out in force, counting on you having slept through civics.  Whether it’s a phone call or an email, the scam works like the email below, received by a colleage’s client.
  Case No. ADR59832 We receive Arrest warrant against your name Kindly call as soon as possible before the court case is file in order to get a settlement before you have any trouble at your home or job. Frank Hamilton Federal Investigation Department Juliet, ill, 60431
I stripped out the no-doubt bogus phone number to call for instructions on how to buy off the agent of the “Federal Investigation Department” by sending money. It would be funny, if it didn’t work so well for the bad guys. Victimizing the vulnerable This scam works, often enough to keep it in circulation, because you feel exposed and guilty when you can’t pay your legitimate bills. The scammers count on exploiting those emotions and generating a bit of terror to part you from your money. Rest assured, none of that money will find its way to your real creditors. When arrest is possible
4 days 6 hours ago
Student load debt is becoming an increasingly big problem for consumers across the country. With the high price of tuition, it is quite common, almost necessary, for the majority of students seeking higher education to incur some student loans. If you are lucky enough to land a good job post-graduation, you may not have a problem with repaying your student loans per the terms of your original agreement with the lender. However, as discussed in previous blog posts here on the Bond and Botes website, student loan repayment is becoming an increasing problem for many Americans and can be quite burdensome. There are, however, a number of options available to help you with repayment of your Federal student loans if you are in bind with student loan repayment. Repayment Options for Student Loans

Read More from: Bonds & Botes, P.C.

4 days 6 hours ago
[wsj-responsive-image P="//" J="//" M="//" caption="In this May 3, 2016 photo, the St. Paul Cathedral is pictured in St. Paul, Minn." credit="Jim Mone/Associated Press" placement="Inline" suppressEnlarge="false" ] The Roman Catholic Archdiocese of St. Paul and Minneapolis has a new bankruptcy plan that sets aside at least $65 million for sexual-abuse victims, who aren’t on board with the plan. The archdiocese hopes the plan gets approved over victims’ objections The Wall Street Journal has the Daily Bankruptcy Review article here. (Daily Bankruptcy Review is a daily newsletter with comprehensive coverage and analysis of emerging and in-progress insolvencies and turnarounds. For a two-week trial, visit, scroll to the bottom and click “try for free.”)

Read More from: Bankruptcy Beat

4 days 7 hours ago