News

On this Website, we will regularly inform you about news at KBS Enterprises, the Accounts Receivable Industry, and the Economy in general as it affects the  Industry.

KBS Enterprises Commentary – 12/10/13

CFPB Proposed rules for Debt Collection  - 11/2013

By CFPB Staff

 

 

These are ground breaking proposed rules in the industry.  It puts an enormous amount of pressure on banks on how and who they sell their debts to as well as how those debts get collected.  The OCC, FTC, Attorneys General will all be in lock step with the CFPB.  The comment period ends at the beginning of February and more than likely these will be the rules in place by February 15, 2014.  KBS Enterprises is already positioned and play by these rules. This is a mindset about collection behavior that is fundamentally different than the rest of the industry.  

 

1. We don't use litigation.

2. We don't charge any additional Interest.

3. We don't collect on out of statute debts.

4. We don't call more than 2x in a 24 Hour period.

5. We don't look to resell our accounts unless the buyer agrees to these guidelines.

 

Competition will be deminished as these rules of the CFPB are adopted and we welcome the adoption of these rules.  Our collection approach offers brand protection for the creditors we purchase from.  If you would like to learn more please reach out to me.

 

 

 

Kenneth Feyl

President

KBS Enterprises


KBS Enterprises Commentary – 10/31/13

American Banker Vido - Views on OCC Guidelines to Banks and the Debt Collection Industry - 7/2/2013

By Jeff Horwitz and Maria Aspan 

 

This report commentary by America Banker Reporters sheds their perspective on the recent OCC Guidelines to banks and how they go about the business of selling their debt to third parties - such as KBS Enterprises.  A big piece boils down to preserving bank reputation.  This is why KBS Enterprises collection approach is so critical to what we do.  Because we don't use litigation in our collections nor do we abuse or take advantage of our customers - we are able to offer Brand Protection for them when they sell their debt to us.  We already have the track record of treating our customers the right way.  The 'Thank You' letters that the agency we use gets is proof of that.

 

Kenneth Feyl

President

KBS Enterprises

KBS Enterprises Commentary – 10/16/13

Statement of the Office of the Comptroller of the Currency

Shining a Light on the Consumer Debt Industry - 7/17/2013

By OCC Staff

 

 

This report was prepared by the OCC and provided to the Subcommittee on Financial Institutions and Consumer Protection (Senate Committee on Banking, Housing, and Urban Affairs). This report provides an executive overview of the industry and recommendations to the banking industry regarding the collection of debt. Here are some highlighted excerpts from this document. You may click on the link below and download the entire report (15 pages). This document also contains the OCC’s identification and recommendations of Best Practices in Debt Sales. Other debt buying firms will either be run out of the business or have to make significant corporate and philosophical changes to comply with these recommendations. The recommendations and best practices found in this document are in perfect alignment with the principles that KBS Enterprises has been founded on. These principles underscore our desire to continue to help lead this industry in reform and be forerunners.

 

“When banks sell debt, the agency [OCC] expects them to have policies, procedures, and practices that result in the third party treating customers fairly and consistently with the expectations of the banks and regulators. Even though the bank may have sold a consumers debt to a third party, consumers often continue to view themselves as the bank’s customers and may have other relationships at the bank. As a result, the debt collector’s behavior affects the banks reputation. Failure to implement proper controls and governance that effectively manage these activities represent safety and soundness and compliance concerns for the OCC.”

 

“The OCC has also published guidelines to banks and provides principles for effectively managing risks associated with vendors and 3rd party service providers….and is also relevant to their relationships with buyers of their debt (debt sales relationships).”

 

[OCC Best Practices in Debt Sales] “the document also includes a variety of specific actions that reflect best practices seen by examiners across large banks……Use of Debt Buyer Score Cards, Limit Resale of debt, limit litigation strategy….”

 

Kenneth Feyl

President

KBS Enterprises

OCC Statement Regarding Oversight of Debt Collection and Debt Sales 7-17-13
OCC Statement Regarding Oversight of Deb[...]
Adobe Acrobat document [176.7 KB]

KBS Enterprises Commentary – 10/16/13

Hedge Funds Seek New Growth Opportunities Through Marketing

Street ID Article - 10/10/2013

By Staff Blogger

 

 

“98% of new wealth inheritors are changing advisors…[they] are more interested in more transparent investments and hedge fund strategies they can understand.”

April Rudin, Chair of Hedge Fund Association High Net Worth

Advisory Board, President/Founder The Rudin Group

 

“Transparent investments” as defined by Rudin are investments that are easy to understand, but are also providing a positive impact. It answers the question, “What is the good that this investment will bring to society as a whole?” Building your brand as a company is what should be happening all the time. The track record of a firm is no longer tied solely to returns. At KBS Enterprises we continue to uphold the values we started this firm on – treating our customers with dignity, respect, compassion and not having a litigation approach to our collections with our customers. This has not been easy, but it has been the right thing to do. It’s what we believe in. I have been asked many times – the rest of the industry always has some litigation as part of its collection approach. There is opportunity in being polar opposite to the rest of the industry. Look at how the rest of the industry treats it’s customers. KBS Enterprises is committed to making a positive social impact. By that commitment we continually position ourselves as one of THE debt buyers to sell to. Our business is simple; we buy charged off debt from the bank, we become the owners of the account, though one of our selected 3rd party agencies we reach out and work with our customers to help them to be in a position to pay off that debt. Very simple. Helping our customers out through a tough time and helping them get to the other side is the principle that we stand on. When you see our agency, CFSII, helping our customers with resume writing, job postings, settling other debts, setting up job interviews and then getting Thank you Letters, you know you are making a positive impact on the lives of our customers. If you have any questions feel free to reach out to me I welcome a conversation with you.

 

Kenneth Feyl

President

KBS Enterprises

KBS Enterprises Commentary – 10/7/13

Debt Collector Thrives with Simple Strategy - Kindness

CBS News - "On The Road" CFSII Segment - 10/4/2013

By Steve Hartman

 

 

A recent CBS News profile of the collection agency that we use in our collection efforts with our customers - CFS II in Tulsa, OK.  Meeting and exceeding expectations when it comes to customer relations in upholding KBS Enterprises commitment to making a social impact and making a difference in one of the least consumer friendly industries. Ultimately we look to "do well by doing good."

 

Kenneth Feyl

President

KBS Enterprises

 

KBS Enterprises Commentary – July 2013

Opal Financial - Family Office and Private Wealth Forum

Panel Speaker: Investing in New Alternatives: Creating Alpha - 7/23/2013

By Kenneth Feyl 

 

I was part of a 3 person panel discussion on investing in new alternatives on the second day of a 3 day conference in Newport RI put on by Opal Financial.  This was our second year attending the event and our first year speaking at the 1,100 person conference.  It gave us the chance to provide education around the credit industry and opportunities it provides for both an investment and as a place to make a real positive social impact. 

 

Kenneth Feyl

President

KBS Enterprises

KBS Enterprises Commentary – 7/18/13

Consumer Bureau’s Director Confirmed After Long Delay

Wall Street Journal Article - 7/17/2013

By Alan Zibel

 

After more than 2 years, this week the Senate confirmed the nomination of Richard Cordray as the sole director of the CFPB by a vote of 66-34. This confirmation allows the CFPB to fully move forward in its role to help consumers against deceptive and abusive practices surrounding non-bank lenders in the mortgage, credit cards and other related financial products industry. About his confirmation Richard Cordray stated:

 

“…this brings added certainty to the industries we oversee and reinforces our responsibility to stand on the side of consumers and see that they are treated fairly.”

 

This nomination confirmation now allows the CFPB to fully flex its muscles in the industries it oversees as the law that brought the CFPB into existence stated that the agency need a confirmed director in order to police the thousands of non-bank lenders it is meant to oversee.

 

This is good news for KBS as we are on the leading edge of the consumer friendly recovery reform that is unfolding before our eyes. We are in lock step with the CFPB and what they are looking for in terms of collection practices. From conception KBS has maintained its discipline as a debt buyer of using agency’s that treat our customers with dignity and respect. Even taking it a step further by truly helping our customers focus on a personal economic recovery.

 

Our preferred agency CFS2 recently received the 2013 "Friend of the Consumer Award" from the American Consumer Council. In the least consumer friendly industry our preferred agency is officially a “friend” of the consumer. When the agency gets thank you letters everyday you know something is being done right.

 

With the industry reputation being abusive collection practices and aggressive litigation, this confirmation of Richard Cordray will either rehabilitate those practicing the “wrong” way or drive them out of business.

 

If you are interested in a copy of this article please fill out our contact form.

 

Kenneth Feyl

President

KBS Enterprises

KBS Commentary 06/11/2013

California AG Sues JPMorgan Over Debt Collection Practices

Collections & Credit Risk Article May 10, 2013

By Joe Adler and Jeff Horwitz

 

The California Attorney General has filed suit with JPMorgan alleging that the bank used illegal “robo-signing” tactics in suing over 100,000 customers between January 2008 and April 2011. This was the similar problem that was at the heart of the mortgage servicing crisis where there were rampant use of “robo-signed” affidavits, missing documentation and un-verified affidavits. The issue of “robo-signed” documents is that affidavits, declarations, or others are mass signed without any knowledge of the facts behind the documents and often hundreds at any given time. American Banker interviewed former employee’s for a series of articles in 2012 where it was revealed that the “bank blew off documentation procedures….being told that they were in a hurry. Go ahead and sign them.” These shortcuts were taken to obtain judgments against consumers quickly and with great ease in an effort to preempt the consumer’s ability to defend themselves. The pace at which these suits were done would not have been possible had the minimum requirements of procedural and substantive rules required by law been adhered to.

Peter Holland of the University of Maryland law school’s consumer defense clinic states that “States around the country are looking at credit card collections as well as Federal Agencies…We can expect more…” This could just be the tip of the iceberg according to analysts. In March in this News section of or website we commented on a Reuters article in which we referenced back to the beginning of 2012 where Michelle Weinberg of the Legal Assistance Foundation of Metropolitan Chicago noted that "If sloppy record keeping and problems with false affidavits is a problem with mortgages, it's 100 times bigger in credit card accounts."

 

The Consumer Financial Protection Bureau is acutely focused on the debt collections industry and is also “turning up the heat” on collection practices, but with a “sue them all and sort them out later” mentality that we believe is pervasive in the industry. One has to be contrarian to the norm of the industry. Which is not always the easy road to take.

HOW you do business is critically important. For the past 3 years KBS has not had a lawsuit filed against us. Nor have we filed any lawsuits – it is not part of our collections strategy. By using collection methodology that does not utilize litigation but does focus on treating our customers with the dignity and respect that they deserve we position ourselves to be THE debt buyer to sell to. Our methodology provides brand protection – for us, our investors and the creditors we purchase from. There is just a better way to treat people and a better way to do business.

 

If you would like a copy of this article please fill out our contact us form.

 

Kenneth Feyl

President

KBS Enterprises

KBS Commentary -5/21/13

 

Daily Oklahoman –May 19, 2013

Professional, personal lives can't be separated, 'Reputation Doctor' says to members of Oklahoma business group

By Paula Burkes

 

KBS Enterprises third party collection agency, CFS II, was recently honored with a Compass Award by the Oklahoma Business Ethics Consortium which is an Oklahoma City based group that promotes and recognizes organizations that build ethical integrity into their organization. . Mike Paul was the key note speaker, a New York-based public relations expert dubbed “The Reputation Doctor” after having counseled the likes of Citicorp, Goldman Sachs, Muhammad Ali, Laura Schlesinger, Rudy Giuliani and hundreds more. In his address he began commenting about a collection agency who adopted a business model not based on hounding people to death but based on trying to help people.  He asked “How extraordinary is that?” in an astonished tone.

 

That is what we pride ourselves with at KBS, working with “Extra-Ordinary” companies to positively affect peoples lives. Many people don’t understand why would anyone go against the “norms” of the industry. “Just do what everyone else is doing – it works doesn’t it?” The Conformist approach allows the dust to settle and uncertainty around the investment to be resolved. Typically, once everything is clear the true opportunity has passed by. On the other hand, taking the Contrarian approach can be very challenging and uncomfortable but brings opportunity.

 

If you would like a copy of this article please fill out our contact us form.

.

Kenneth Feyl

President

KBS Enterprises

KBS Commentary -3/24/13

 

Collector Magazine Article –February, 2013

The Changing Face of Asset Buying

By Katie Louden

 

With the start of the Consumer Financial Protection Bureau last year in 2012 some of their role has gotten slightly clearer, the who and a little of the how. The CFPB is in charge of overseeing particular asset buyers and collection agencies that have revenue over $10M / yr. Throughout this year what direct supervision will mean will more than likely shake out. “The CFPB is likely to be very vigilant about looking at the practices of asset buyers and collection agencies that collect on their behalf” the article states. This is the reason we at KBS have been establishing our track record over these past 3 years of treating our customers with dignity, respect and only use collection agencies that are vetted out that meet our requirements. In addition, by not using litigation as part of our collection methodology we provide brand protection for the creditors we purchase from, as they know that their customers we acquire won’t be sued and thus maintains their brand value. Also, this offers brand protection for our investors as we avoid “headline risk” by maintaining this better way to treat people and better way to do business.

 

Restricted resale of assets is also becoming more evident in the purchasing of assets from creditors. Again, who they sell to and how they treat their customers whom they sold is vitally important. This may also be a heavily monitored activity by the CFPB as well. A good understanding of the original creditors policies are important as if resale is part of the collection strategy of a purchased portfolio to whom that portfolio is sold to and their collection procedures are also important as it ties back into the original creditor’s sale. At KBS we pride our strategy of developing relationships and working with people to recover. We believe we collect more over time with this focus. As to date, we have not resold a portfolio. We have also signed a pledge that if we ever did resell a portfolio it would be only to a debt buyer that is willing to sign the same pledge in how their treatment of customers.

 

Volume and pricing in 2013 will be something to watch as well. Many smaller debt buyers have been forced out of the market and yet others are merging with other debt buyers. As the volume of debt buyers decreasing – high and competitive pricing may also decline. On the flip side, the volume of debt has decreased over the last several years steadily increasing the pricing of debt - A fine balancing act for sure. A key we believe to success in this atmosphere are the key relationships developed to purchase debt in a forward flow fashion with the value add of our collection methodology protecting the consumer as well as the creditor.

 

The cost of CFPB compliance is also a factor in 2013 for debt buyers to contend with. Smaller debt buyers will struggle with this to responsibly comply. Audited financials will be a big piece of being an accredited buyer for banks. Along with this will be compliance tools and procedures and making sure the agencies used by buyers comply. Chris Jenkins of NLEX noted, “The future of asset buying is going to be a better world, fewer ups and downs, and more of a focused and compliant industry than we have had in the past.”

 

If you would like a copy of this article please fill out our contact us form.

.

Kenneth Feyl

President

KBS Enterprises

KBS Commentary -3/11/13

 

Reuters Article –March 7, 2013

States Probing Top US Banks over Debt Collection

By Aruna Viswanatha and Rick Rothacker

 

Following the mortgage issues at the large banks last year that ended in a $25 Billion federal-state settlement due to “robo-signing” and not having enough information on the accounts and still pursuing litigation and foreclosure on those accounts, the attention is now on the credit card industry. Back at the beginning of 2012 Michelle Weinberg of the Legal Assistance Foundation of Metropolitan Chicago noted that "If sloppy record keeping and problems with false affidavits is a problem with mortgages, it's 100 times bigger in credit card accounts,"   Clean title and documentation of debt owed and ownership  are key elements for any dispute of debt in a litigation proceeding. 

 

Until recently any scrutiny into this area has been limited to collection agencies and debt buyers. Now the FTC, which doesn’t have jurisdiction over the banks, may be joined by the CFPB which does have the authority to investigate. When debts are sold the banks typically provide information that is basic – who the borrower was and how much money they think they owe - sometimes not even providing evidence of the debt being sold is even delinquent. It has been our experience that original contracts, past statements and other documentation can be bought at the time of purchase from the bank, which we make a practice of doing.

 

Even without the right documentation litigation has been pursued by other debt buyers and in a vast majority of cases the debtor doesn’t know about the suit, can’t take a day off work, or are confused and don’t know what to do. At that point a default judgment is placed against them. What this allows potentially is garnish wages and debit bank accounts of the customer.

 

The article points out that” While the banks are not themselves pursuing the questionable judgments on credit card debt, they could be liable for aiding and abetting the practice by providing information they cannot confirm as accurate, people familiar with the states' legal theories said.Experts could not predict what kind of liability banks could face in related actions, but a recent FTC study hints at the potential billions at stake.”

 

For 3 years we have been positioning ourselves on the right side of this issue. We don’t use litigation in our collections methodology but yet we do buy the available documentation from the bank and make sure we have a clean chain of title. The banks now have to be worried about WHO they sell to and how they approach collections of the accounts being sold. We are positioned as a “go to” debt buyer that won’t sue or mistreat the banks customers which are being sold – wee see this as a key business advantage.

 

If you would like a copy of this article please fill out our contact us form.

.

Kenneth Feyl

President

KBS Enterprises

KBS Commentary -2/27/13

 

Wall Street Journal Article -February 25, 2013

12 Debt Myths that Trip Up Consumers

By Rachel Louise Ensign

 

Currently there is approximately $849 Billion in outstanding revolving credit in the US.  Of that outstanding number the average indebted household credit card debt is $15,257! Total household debt including mortgage debt stands at $11.31 Trillion and of that number the average household debt for those 35-44 is $108,000!  This article starts off with a bold statement - "Avoid Debt if you can."  A wise saying yet easier said than done in our consumer want it now society. This article highlights 12 key myths that consumers buy into when it comes to understanding credit and debt.

 

1. Once you marry, you're responsible for your spouse's debt.

2. Credit cards from your favorite retailers are a good deal.

3. Your too rich for federal student loans.

4. Dutifully paying off your mortgage each month will do wonders for our credit score.

5. Money from a family member makes an easy downpayment on a home.

6. Today's tight lending criteria apply to auto loans too.

7. If you agree to separate your debt in a divorce, it's separate.

8. A high income and credit score means you'll be pitched the lowest interest rate on credit cards.

9. If you looked up your credit score, you know your credit score.

10. A late credit card payment will damage your credit.

11. All mortgage and home equity interest is deductable.

12. Buying a home with cash is the best option, if you have the money.

 

Of particular note for consumers is that a late payment on a credit card doesn't always get reported unless it's REALLY LATE - not just a few days.  Typically 30day's past due hits your credit report.  Also, it's really negative information on your credit report that speaks to your credit risk to lenders more than good behavior. 

 

If you would like a copy of this article please fill out our contact us form.

.

 

Kenneth Feyl

President

KBS Enterprises

KBS Commentary -2/21/13

 

Collection and Credit Risk Article -February 5, 2013

Another Poll Shows Consumers are Willing to Spend

By Collection and Credit Risk Staff  

 

 

 

According to a poll by Gallup consumer monthly spending hit a 4 year high in December. According to Gail Cunningham at National Foundation for Credit Counseling (NFCC) overspending is “often tied to deep rooted behavior, making it very hard to change.” The NFCC sent out a poll to consumers to see if they felt they had a problem with spending or savings, neither or both. 62% identified themselves as having a problem related to both spending and savings. This is interesting as consumers have picked up spending at a time when paychecks are smaller due to increased Social Security Taxes.

 

After a long period of time of paying down debt, either by default or by actual cash, and being frugal this deep seeded behavior to spend is hard to shake as any changes made may only be superficial. Spending habit changes are very difficult to change at a base level. Even good people get caught up in this and any little shake up and the best laid plans are turn upside down. Charges offs rose also in the 4Q2012.  

 

If you would like a copy of this article please fill out our contact us form.

.

 

Kenneth Feyl

President

KBS Enterprises

KBS Commentary - 1/28/13

 

American  Banker  Article -January 16, 2013

Banks Face Official Backlash Against Card Debt Collection Practices

By Jeff Horwitz

 

The face of the collection and banking industry will be changing and the first signs of this can be seen through this article in American Banker. The industry oversight groups such as Attorneys General, FTC, CFPB, OCC and FDIC warn of coming down on banks that sell to “bad actors” in the collection industry. A source is quoted as saying that “the states are looking at the banks themselves, not just 3rd party debt buyers.” Regulators are finding that current industry practices are not sufficiently rigorous when it comes to debt collection (particularly when it comes to collection through litigation). Many debt buyers & event the banks themselves may not be able to provide the necessary materials consistently and at a reasonable cost. Industry norms have shown that they don’t typically provide full account records to debt collectors. Mark Schiffman, VP of ACA International, is quoted as saying that ”abruptly requiring exhaustive documentation would be GAME OVER for many in the industry.” Several of the top 15 debt buyers in the industry see between 40-49% of their revenue from litigation collections.   Most often debt documentation can be bought from the bank, if being purchased from the original creditor. The FTC has stated that “The sticking point over the last few years has been the original creditors. When we’ve reached out to them, they haven’t been very interested in engaging with us.” Now with the creation of the CFPB which has been empowered to regulate banks and major debt collectors the industry dynamic will for sure be changing in 2013 going forward.

 

You know something is wrong when a major bank like Bank of America sells debt in 2009/20 to CACH and says that they could not vouch for “the accuracy of the sums shown as the current balance.” This is original creditor and sends out statements to its customers regarding how much they owe and what to pay!

 

This is a good time to be on the right side of this equation. We have been creating our track record for the last 2.5 years on the foundation of doing things the “right way.” As we have stated before, there is a better way to do business and a better way to treat people in this industry. We believe that means working with people and not suing them, particularly en masse. We are on the cutting edge of change in this industry and as we grow we look to continue to be on the forefront.

 

If you would like a copy of this article please fill out our contact us form.

 

Kenneth Feyl

President

KBS Enterprises

 

 

KBS Commentary - 1/14/13

 

Wall Street Journal Article -January 11, 2013

Long Term Umemployed Begin to Find Work

By Ben Casselman

 

December marked the first month in the past 3 years where the long term unemployment rate (those unemployed over 6 months) dropped below 40% of all the job seekers. This is a good sign for the overall economy because the fear of those like Ben Bernanke was that these job seekers could potentially become permanently unemployable – which would have created a much worse problem for the overall economic system in the United States. Not all of the drop can be attributed to job seekers finding work however, as the article points out millions of Americans have given up looking for work and don’t count as part of the “unemployed” in the official statistics. Some of the drop can also be attributed to the reduction of out of work benefits where those longer term unemployed may have been pushed back into the workforce at a job that they may have otherwise not have taken.

 

The problem is far from over though as almost 4.8 million people are considered long term unemployed. Those unemployed for over 3 years have not seen a drop in their percentage share of unemployed workers as it is roughly 5% - the same as it was in December 2011. Overall 11.8 Million people are unemployed (officially) with the unofficial number we believe between 14-15 Million (unofficially) as many people who have dropped out looking for work are not captured in official unemployment numbers.

 

Overall this drop in long term unemployed is a good sign for our industry as workers begin to get back to work – even after 2-3 years out of the workforce, their ability to begin payments on debts owed increases. Giving people the time and space to regain their footing is a key factor to collections in this economy. Overall we believe people’s moral compass is still pointing in the right direction as they know the debts they owe. We expect to see an impact from this news if the current trend continues in 2013.

 

If you would like a copy of this article please fill out our contact us form.

 

Kenneth Feyl

President

KBS Enterprises

KBS Commentary - 1/7/13

 

Wall Street Journal Article -January 2, 2013

Consumer Watchdog Readies to Bare Its Teeth

By Victoria McGrane

 

The Consumer Financial Protection Bureau is "now freed from some of the proceedural schackles" that were imposed by the Dodd-Frank Bill that created the agency.  The agency started direct oversight of collection firms with over $10M in annual revenue at the beginning of this year.  They have till January 21st of this year to finalize mortgage rules required by Dodd-Frank and then its on to other consumer focuses. Some of these focuses include Bank Overdraft Fees, Debt Collection Agencies, Credit Reporting Bureaus. 

 

Elizabeth Warren the driving force behind the development of the CFPB is also the newly elected Senator from MA and will also serve on the Senate Banking Committee. From here she can more easily defend against any changes to the CFPB.  Some in the financial industry wish to see structural changes made to the Bureau such as replacing the single director position and repleace it with a 3-5 person commission to oversee the CFPB. 

 

Richard Cordray term as director also ends the end of this year as he was appointed by President Obama with out Senate consent using a recess appointment proceedure. Debuty Director Raj Date is also stepping down this January and will also need to be repleaced.

 

As oversite of the collection industry begins the CFPB has publicly stated that one of its goals is to help honest debt collectors do their job responsibly and see that the rest are either rehabilitated or run out of business once and for all.  This is not worrisome for us at KBS Enterprises as we have the track record of doing things the right way.  The industry will see change and with this change we see opportunity.

 

If you would like a copy of this article please request one from our contacts page.

 



Kenneth Feyl

President

KBS Enterprises

KBS Commentary - 12/27/12

 

Wall Street Journal Article -December 24, 2012

Consumers Climb Out of Debt

By Ben Casselman

 

"Household debt payments are at their lowest level in decades"  This in turn allows paychecks to stretch further every month.  There are several contributing factors that have lead to this:

 

1. Voluntary deleveraging such as rebuilding savings and paying down debt agressively.

2. Involuntary delveraging such as forecolsures and bankruptcies.

3. Tighter lending standards have made fresh borrowing difficult.

 

According to Ram Bhagavatula, economist at Combinatorics Capital, at the peak of hte housing boom nearly 19% of a households after tax income went to debt payments it is now below 16%. 

 

At KBS we play our role in helping customers hardest hit by the economy deleverage and lower their debt burdon through our agencies that work on our behalf.  Working through budgeting and working out a plan - finding that best economic solution - a balance that fits our goals and our customers.

 

If you would like a copy of this article please request one from our contacts page.

 



Kenneth Feyl

President

KBS Enterprises

KBS Commentary - 12/10/12

 

Wall Street Journal Article -December 7, 2012

Measuring 'Unemployed' is a Moving Target

By Spencer Jakab

 

Last Friday the government put out it's latest unemployment numbers and the official unemployment rate fell to 7.7%, down from 7.9% it was the previous month.  While good news it was tempered by the fact that the number fell in part due to people dropping out looking for work so the denominator in this equation was smaller.  Last week the WSJ had an "Ahead of the Tape" article by Spencer Jakab where the unemployment rate, taking into account those marginal and involuntary part time workers is closer to 15%.  That is millions of people hurting in this economy. 

 

"Payrolls have increased by an average of 80,000 a month - less than population growth. And real disposable personal income per capital is flat."

 

What is interesting is that Americans are shrinking the size of their household debts.  Currently household debt is 112.7% of disposable income (September 2012) comparied to 116.4% at the same time last year.  This can be attributed to in part to paying off more debt with a slight rise in after tax income and to some consumers defaulting on debt they have. 

 

A vast majoity of Americans, I believe,  have their "moral compass" still pointed in the right direction and want to regain the credit status they once had if they have defaulted on debt obligations.  Looking for the win-win negotiation solution where everyone is happy about the debt solution is key and sparks indivitual economic recovery.

 

If you would like a link to this article please fill out our contact form and let us know.

 

 

Kenneth Feyl

President

KBS Enterprises

KBS Commentary - 11/13/12

 

Thinkprogress.org Article -November 9, 2012

Occupy Wall Street Launches "Rolling Jubilee" to Buy Up and Forgive Debt

By Pat Garofalo

 

Occupy Wll Street has test run a new initiative and it is in the debt collection industry. Their new program is a "Rolling Jubilee" where Occupy Wall Street organizers will be purchasing debt from creditors and forgiving the debt of the consumer outright.  They did a test run of purchasing $14,000 of face value debt for $500 and forgave the debts as the new creditor. A quote from their website states "This is a simple, powerful way to help folks in need - to free them from heavy debt loads so they can focus on being productive, happy and healty." 

 

This is an interesting development in this industry.  Their social motives can be appreciated but yet there is something to be said for empowerment that comes to individuals who pay something toward what they owe.  Though small in the big picture, this action speaks to the need in this industry to treating customers in respectful and dignified way. This is the track record we have been building for the last 2.5 years.

 

If you would like a link to this article please fill out our contact form and let us know.

 

 

Kenneth Feyl

President

KBS Enterprises

KBS Commentary - 08/07/12

 

Wall Street Journal Article -August 4-5, 2012

Job Gains Spark Stock Rally

By Neil Shah and E.S. Browning

 

The US labor market added a seasonall adjusted 163,000 new jobs in July which was the largest gain since February but at the same time the unemployment rate rose 0.1% to 8.3%.  This slight rise in unemployment shows that the US recovery is slow and the labor market is still fragile.  The share of the adult population that is working fell slightly as more people became discouraged by their prospects of finding a job and dropped out of the labor pool. 

 

This economy has been tough on many Americans - many of whom never expected to be in this position of long term un-employment.  It's making it hard for them to pay their bills and provide for their families.  We are in a position to help these people as they default on credit card loans, to start to get out of mounting debt with the dignity and respect they deserve.  Lets build people up instead of beating them down with litigation over their debts.  People understand they have bills to pay even if they defaulted.  It's about treating people the way I would want to be treated if I were in that same situation.  There is nothing wrong with the Golden Rule we all learned when growing up.

 

If you would like a link to this article please fill out our contact form and let us know.

 

 

Kenneth Feyl

President

KBS Enterprises

KBS Enterprises News - 07/27/12

 

Opal Financial's Family Office and Private Wealth Conference - July 23-25, 2012

 

Kenneth Feyl as President of KBS Enterprises and Fund Manager for Torus Fund attended the Opal Financial's Family Office and Private Wealth Management Conference in Newport, RI.  

 

Kenneth Feyl

President

KBS Enterprises

Commentary - 07/10/12

 

Wall Street Journal Article - July 10, 2012

Vital Signs

By WSJ Staff

 

Consumers used their credit cards more in May according to Federal Reserve reports.  Revolving Consumer Credit outstanding, which is mostly credit card usasge, was up 11.2% in May to $870.2 Trillion dollars.  This was the largest  pecentage rise since November 2007.  What we can read into this is that consumers were more willing to spend, which continues the trend that started in 2011. 

 

If you would like a link to this article please fill out our contact form and let us know.

 

 

Kenneth Feyl

President

KBS Enterprises

Commentary - 06/21/12

 

Wall Street Journal Article - June 21, 2012

Fed Warns of Risk to Economy

By Kristina Peterson and Jon Hilsenrath

 

Ben Bernanke and the Federal Reseverve Bank announced the extension of "Operation Twist", a relatvely small quantitative easing program, till the end of the year.  This was in effort to help boost the economic recovery and job growth.  They noted that the Fed is prepared to do more if necessary to spur on job growth.  Operation Twist appears to have "ended what looked to be an incipient deflation problem." according to Ben Bernanke.

 

While annoucing this they also provided a bleak economic forecast for the economy.  Fed officials are projecting that the economy will grow between 1.9% and 2.4% this year, a .5% slower than their April projection and only project 3% growth next year.  In terms of unemployment, the central bank is forecasting a jobless rate of 7% or ABOVE by the end of 2014.  

 

This news continues to show that the nation will continue to suffer through this very tough road out of this "Great Recession".  Consumer debt will grow and the flow of charged off accounts will remain steady.  Yet at the same time as people begin to find employment again, the ability to settle defaultetd credit accounts will strengthen.

 

If you would like a link to this article please fill out our contact form and let us know.

 

 

Kenneth Feyl

President

KBS Enterprises

KBS Enterprises News - 06/11/12

 

2012 Super Return Conference - June 5-8, 2012

 

 

KBS Enterprises attended the 2012 Super Return Conference in Boston, MA.  This conference marked the annoucement that Torus Fund LLC has been created and that Ken Feyl is the Fund Manager for this consumer debt buying fund.

 

Kenneth Feyl

President

KBS Enterprises

Commentary - 05/08/12

 

Wall Street Journal Article - May 5-6, 2012

Jobs Engine Sputters Again in April

By John Hilsenrath and Jonathan Cheng 

 

On Friday the the US Labor report noted that only 115,000 jobs were added in April down from 120,000 created in March.  Even with this news  that the unemployment rate fell to 8.1% it was a result of more job seekers, approximately 342,000 people, deciding to stop looking for work all together.

 

Though slowing jobs recovery, consumer spending is seen as a bright spot in the economy, though not all done using credit cards - according to an InsideARM article this week. 

 

A slow, yet steady, US Economic recovery is seen by KBS as a prefered scenario, as it allows for the continued availability of purchasing assets and for increasing returns from collections as people slowly find work and their ability to pay prior debt obligations then also increases.  This identifies a sustainable growth pattern for KBS Enterprises over the coming years.

 

If you would like a link to this article please fill out our contact form and let us know.

 

 

Kenneth Feyl

President

KBS Enterprises

Commentary - 04/10/12

 

Poughkeepsie Journal Article - April 7, 2012

US Job Market takes a break after hiring binge

By Paul Wiseman (AP) 

 

On Friday the the US Labor report noted that only 120,000 jobs were added in March which was well under the 210,000 jobs that analysts were expecting for the month.  The unemployment rate did drop from 8.3% to 8.2% largly due to the fact that  many more Americans dropped out and stopped looking for work.  With this slight stall in hiring it's interesting to note that the economy hasn't added 200,000 or more jobs for 4 straight months since early 2000.  On the positive side the first quarter of this year DID average 212,000/mo job growth. 

 

The econony is still fragile as we watch US Jobs slowly climb and crawl out of hte pit that was created during the recession.

 

If you would like a link to this article please fill out our contact form and let us know.

 

 

Kenneth Feyl

President

KBS Enterprises

Commentary - 03/26/12

 

Inside ARM Article - March 23, 2012

CFPB Launches "Answers" Portal for Financial Questions, Including Debt Collection

By Patrick Lunsford  

 

The Consumer Financial Protection Bureau (CFPB) launched a new section of their web site last week - "Ask CFPB".  There are catagories that the consumer can navigate to including "Debt Collection".  Currently there are only 10 questions and answers prepared by the CFPB Staff but the intent is to allow an active interface with the CFPB to ask questions, receive answers as well as be provided linkes to other relevant goverment agencies and reports.

 

One of the next steps in the CFPB ramp up of operations.  This provides the consumer a "go to first" resource for a multitude of questions regarding any financial situation a person may find themselves in.  This can be a good starting place if a person finds themselves in a place that they are not familiar with (i.e. having a collector call for the first time) that can be very un-nerving.

 

The link to the CFPB "Ask CFPB - Debt Collection" Web site is:

 

http://www.consumerfinance.gov/askcfpb/search?selected_facets=category_exact:Debt%20Collection

 

If you would like a link to this article please fill out our contact form and let us know.

 

 

Kenneth Feyl

President

KBS Enterprises

Commentary - 03/19/12

 

Wall Street Journal Article - March 9, 2012

Sizing Up America's Debt-Service Economy

By Justin Lahart  

 

US household debt incresed to a total of $13.22 Trillion due to increasing credit card debt, student loan debt, and car lowns which outpaced at decline in mortgage debt outstanding.  Eventhough with household debt increasing the overall debt-income ratio fell from 113.4% to 112.8%.  This is largely dut to the fact that after tax income grew faster than the debt.  the peak of the debt to income ration was an incredible 130% in 2007 - when nothing seemed it could go wrong.  By contrast in the 1990's the debt to income ratio averaged 85%!   Currently 11.09% of families after tax income goes to debt payments.  

 

What we see is that there is an intereting balance happening for the debt buyer in the marketplace - as people find employment and see their after tax income rise their ability to pay past obligations increases, yet at the same time, unemoplyment is expected to remain in the 8%+ range this year and thus keep debt purchase prices relatively low and attrative to buy. 

 

 

If you would like a link to this article please fill out our contact form and let us know.

 

 

Kenneth Feyl

President

KBS Enterprises

Commentary - 03/02/12

 

Wall Street Journal Article - March 1, 2012

Fed Chief Interprets Growth, Job Signals

By Ron Hilsenrath

  

Fed Chief Ben Bernanke in his semi annual testimony to congress expressed uncertainty regarding his outlook regarding both inflation and unemployment.  Unemployment has been dropping faster than expected in relation to the overall economy that has been growing but only at or below it's long term trend

 

The central bank's forcast is for economic growth of 2.2% - 2.7% in 2012 and for unemployment to be between 8.2% - 8.5% by the end of this year.

 

This prompts us to believe that charged off credit card debt will continue to be available and the opportunity to help people start to get out of their personal economic distress will remain high as well.

 

If you would like a link to this article please fill out our contact form and let us know.

 

 

Kenneth Feyl

President

KBS Enterprises

Commentary - 02/28/12

 

Collections and Credit Risk- February 24, 2012

Year End Lawsuits Revises Upward, Reach 12,000

By Staff Contributor

  

Fair Debt Collection Practices Act complaints reached 12,018 for 2011 as reported by WebRecon LLC.  This represents an 8% rise from 2010.  The sharpest rise happend in 2009 when it rose over 50% from 2008 at the peak of the financial crisis. 

 

FDCPA lawsuits remain on an upward trend as litigation remains to be the predominate means of collections for many firms. This is what will continue to distinguish KBS Enterprises and it's contracted agencies as being THE firms for banks to sell their credit card charges off's to.  Reputations and client relations don't become tarnished when customers are treated with Dignity, Repsect, and Integrity. The motto - Polite and Professional.  

 

If you would like a link to this article please fill out our contact form and we'll be glad to send you a link.

 

Kenneth Feyl

President

KBS Enterprises

Commentary - 02/20/12

 

InsideARM Article - February 16, 2012

CFPB Proposes Rule to Supervise Large Debt Collectors

By Staff Contributor

  

Richard Cordray, CFPB Director , announced that the CFPB is proposing a rule to "supervise large participants" include Debt Collectors with collections over $10M. The industry has for the most part been relatively unregulated for a long time.  This is a first attempt to do so by concentrating on approximately the 4% of collection agencies that fall into this category but represents over 60% of collections. Also included in this new proposed rule that credit reporting agencies also receive the same supervision. 

 

The CFPB was given the authority to supervise "large participants" in the nonbank markets for consumer financial products or servicest under this new organization created by Dodd-Frank Wall Street Reform and the Consumer Protection Act.

 

This is the beginning of potentially many new regulations for the ARM Industry and will be interesting to see how it all develops.  We can see states taking action as proposed new collection laws where Senate bill 1430 (The Bartmann Bill) was approved and will now move the floor of the House for debate.  KBS Enterprises supports this bill and we'll continue to watch as this landscape develops. 

 

We see these changes as good as it positions KBS Enterprises as one of "THE" companies to sell debt to as we use agencies that utilize  a non-litigation and non-confrontational approach to collections. 

 

If you would like a link to this article please fill out our contact form and we'll be glad to send you a link.

 

Kenneth Feyl

President

KBS Enterprises

KBS Commentary - 02/13/12

 

American Banker Article - January 10, 1012

JPM Chase Quietly Halts Suits Over Consumer Debts

By Jeff Horwitz 

  

"JPMorgan Chase & Co. has quietly ceased filing lawsuits to collect consumer debts around the nation, dismissing in-house attorneys and virtually shutting down a collections machine that as recently as nine months ago was racking up hundreds of millions of dollars in monthly judgments."

 

Late in December JPMC completely dismantled a unit that recovered $1.4Billion in defaulted credit card accounts in 2011.  This action which appears to have been done very hastily leads to question the motive behind this move.  What would cause a bank to shut down such a profit center?  The article notes concerns even within the bank that it didn't have the correct balances for accounts shows that documentation is a key concern, particularly in an aggressive litigation approach to collections. 

 

It was also noted by Michelle Weinberg of the Legal Assistance Foundation of Metropolitan Chicago that "If sloppy record keeping and problems with false affidavits is a problem with mortgages, it's 100 times bigger in credit card accounts,"   Clean title and documentation of debt owed and ownership  are key elements for any dispute of debt. 

 

At KBS Enterprises we don't approach our customers in this way.  We want to find that Win-Win agreement with a customer. Understanding their current economic condition and working within that framework.  Litigation is not on the table for us so you won't find KBS in a headline such as this.

 

If you would like a link to this article please fill out our contact form and we'll be glad to send you a link.

 

Kenneth Feyl

President

KBS Enterprises

KBS Commentary - 02/04/12

 

Wall Street Journal Article - February 4-5, 1012

Jobs Power Market Rebound - Unemployment Dips to 8.3%

By Conor Dougherty 

  

The economy is showing signs of life as unemployment has shown another month of decline.  The official unemployment rate ticked down to 8.3% down from 8.5% in December 2011.  There is still a long way to go to get back down to normal levels of 4-5% but 2.2 million jobs have been added since the offical end of the recession.  What this means for our industry is as those who have been out of work find employment their ability to pay off debts that were charged off by the credit card banks will be have a greater ability to reduce their debt load. 

 

If you would like a link to this article please fill out our contact form and we'll be glad to send you a link.

 

Kenneth Feyl

President

KBS Enterprises

KBS Commentary - 01/30/12

 

Collections and Credit Risk Article - January 30, 1012

Debt Buyer Agrees to $2.5M FTC Penalty

By Collections and Credit Risk Staff Writer

 

Yet another example of business as usual. No wonder the industry has a bad reputation within the general public.  KBS Enterprises is committed to a another way of doing business - a better way.  As debt buyers we will not stray from our core values and only use collection agencies whose practices are in line with those values.  We have an opportunity to help build people up, not tear them down, and yes, still make money at the same time. 

  

"The FTC's nine-count complaint charged Asset Acceptance with:

  • misrepresenting that consumers owed a debt when it could not substantiate its representations;
  • failing to disclose that debts are too old to be legally enforceable or that a partial payment would extend the time a debt could be legally enforceable;

  • providing information to credit reporting agencies, while knowing or having reasonable cause to believe that the information was inaccurate;
  • failing to notify consumers in writing that it provided negative information to a credit reporting agency;
  • failing to conduct a reasonable investigation when it received a notice of dispute from a credit reporting agency;
    repeatedly calling third parties who do not owe a debt;
  • informing third parties about a debt;
  • using illegal debt-collection practices, including misrepresenting the character, amount, or legal status of a debt; providing inaccurate information to credit reporting agencies; and making false representations to collect a debt; and
  • failing to provide verification of the debt and continuing to attempt to collect a debt when it is disputed by the consumer."

 

 

If you would like a link to this article please fill out our contact form and we'll be glad to send you a link.

 

Kenneth Feyl

President

KBS Enterprises

KBS Commentary - 01/26/12

 

Wall Street Journal Article - January 20, 1012

A Plastic Revival at AmEx, CapOne

By Andrew Johnson and Matthias Rieker 

 

Revolving credit is on the rise!  Fourth Quarter reports from American Express and Capital One show that US balances have increased.  A combination of increased confidence on both the consumer and issuer of credit is happening as issuers are ramping up marketing to bring in new customers.  During the recession borrowers were decreasing debt load by paying down debt or defaulting and lenders cut back offers to those people who had stellar credit only. 

 

What does this mean for us?  More credit will be working itself through the system and presents to us a level of volume consistancy in the consumer credit marketplace. 

 

If you would like a link to this article please fill out our contact form and we'll be glad to send you a link.

 

Kenneth Feyl

President

KBS Enterprises

KBS Commentary - 11/22/11

 

Wall Street Journal Article - November 22, 2011

Debtor Arrests Criticized

By Jessica Silver-Greenberg

 

Highlighted in this article are the mounting issues of debtors being arrested after being sued over their defaulted debts.  About 33% of the states allow people who can't or won't pay their debts be arrested.  What is at issue here is that sometimes the people don't know they were sued and didn't show up at their hearing  or fail to make judgement payments thus resulting in an arrest warrent being issues.  THIS IS CRAZY!  The Illinois State Attorney General Lisa Madigan is looking to curb the abuse of companies power to seek arrest warrents. 

 

This highlights the difference of how KBS Enterprises seeks to do business with our customers.  We do not utilize a litigation strategy and we use agencies that treat all our customers with polite professionalism.  It's about helping our customers who have fallen on hard times recover not beating them into the ground just for a quick dollar.. 

 

If you wish to support changes in the industry please click the link to the right regarding the changes we support in the collection industry.

 

If you would like a link to this article please fill out our contact form and we'll be glad to send you a link.

 

Kenneth Feyl

President

KBS Enterprises

KBS Enterprises News

November 14, 2011 

 

We recently signed a pledge to a major bank that as future owners of their customers we would:

 

1. To never attempt any collection efforts on any credit card debt that is beyond the statute of limitations.

2. To never file a lawsuit for the collection of credit card debt.

3. To never charge interest on a credit card debt that was charged-off by the original issuer.

4. To never attempt to contact the consumer regarding credit card debt by telephone more than two times in any one 24-hour time frame.

5. To never re-sell credit card accounts to anyone who has not signed this Pledge.

 

Kenneth Feyl

President

KBS Enterprises

KBS Commentary - 10/19/11

 

Wall Street Journal Article - October 4, 2011

Citi Cleans Out the Closet - Despite Sales, Unwanted Assets Weigh on Firm; Mortgages to Credit Cards

By Suzanne Kapner

 

Citi Bank has moved its unwanted assets into a separate entitiy called Citi Holdings.  40% of Citi Holdings are in home mortgages and home equity lines of credit.  Also included are 49% stake in the Smith Barney brokerage firm which includes a private label credit card company and OneMain Financial, a consumer lending business.  According to the article $308 Billion are still for sale. (approx. 50% of what it was back in 200)

 

There will continue to be banks cleaning house by selling assets as they recover and adjust from the financial crisis and reform to new legislation.   

 

If you would like a link to this article please fill out our contact form and we'll be glad to send you a link.

 

Kenneth Feyl

President

KBS Enterprises

KBS Enterprises News

September 30, 2011 

 

 

With it's latest portfolio acquistion, KBS Enterprises now has $2.85 M in face value assets that are being managed.  As we continue to grow, we continue to strive to reach our goals of helping those hardest hit in our economy take steps to regain their financial footing.

 

Kenneth Feyl

President

KBS Enterprises

KBS Commentary - 9/21/11

 

Wall Street Journal Article - September 17, 2011

CIT Shops $1 Billion Commercial Loan Portfolio

By Sabrina Willmer 

 

CIT Group is looking for a buyer for it's $1 Billion commercial loan portfolio - mostly from it's distressed loan book with some accounts still performing.  It's seen as cleaning up their balance sheet for a potential acquisition by a large bank.  The insite that the article makes is that the selling of distressed assets allows a financial institution the ability and room to issue new loans.  This allows time and resources to be utilized effectively in lieu of spending them servicing and existing portfolio that may have issues.

 

We'll continue to see more of this activity as banks continue to dig themselves out and create the necessary capital reserves required to get back in the business of originating loans.  As mentioned in David Wessel's article on Sept 8, 2011 - "The Long Slog of Paring Debt".  Most of the large banks have either raised capital or are selling assets to devleverge themselves.  Corporations are generally flush with cash and not highly leveraged.  American families on the otherhand can't raise capital to pay down debt.  They can only deleverage by house appreciation, (which isn't happening), selling thier home in a short sale, saving more (which is happening),  or walking away from their debt (which we see in the amount of credit card debt we are seeing being bought and sold). 

 

If you would like a link to this article please fill out our contact form and we'll be glad to send you a link.

 

Kenneth Feyl

President

KBS Enterprises

KBS Commentary - 9/6/11

 

Wall Street Journal Article - September 3-4, 2011

Job Growth Grinds to a Halt

By Sudeep Reddy 

 

Overall no new jobs were created in August.  Any gains in the private sector were offset by goverment jobs being shed.  Thus the official unemployment rate remained at 9.1% for August.  The federal goverment has revised it outlook to show that they expect unemployment to remain elevated at this level through the end of the year. 

 

An interesting graphic was shown in this article that shows just how different this recession has been to other recent economic downturns we have faced.  The cummulative change in non-farm payrolls is dramatically slower than any other of the recent recessions since the 1980's.  (see graph from WSJ below)

 

We'll continue to see large amounts of charged off credit card debt out there from banks as people are still finding it so hard to find employment.  We have seen increased prices for discharged debt for sale - in part due to increased buying from the larger debt buying companies and that banks have seen a reduced amount of charge offs compared to the record number of charge offs in 2009-10. This lower charge off rate can be attributed to the lending standards tightening  and the banks not issuing as much credit as they did in the past.  

 

We foresee the prices for distressed debt to remain opportunistic and a good buy.  As the country continues to dig out of this recession we'll see that people's ability to pay their debts increase.  We continue to see this as a good time to buy this type of asset class.

 

If you would like a link to this article please fill out our contact form and we'll be glad to send you a link.

 

Kenneth Feyl

President

KBS Enterprises

WSJ Graphic 9/3-4/2011

KBS Commentary - 8/12/11

 

InsideARM Article - August 8, 2011

Consumer Credit Jumps in June; Cards see largest Gain in Years

By Patrick Lunsford 

 

 

The Federal Reserve just released a report that showed that outstanding credit card balances rose 7.9% in June which translates into an increase of $5.2 Billiion.  Credit Cards loans took the largest drop off in terms of outstanding balances than any other type of debt. This can be attributed to a several factors:

 

1. consumers sheding debt by defaulting on it 

2. Consumers tightening their financial belts not spending as much and steadily paying down debt they owe. 

3. Banks limiting credit

 

Prior to the recesion (Aug. '08)Americans owed $973.6 Billion and only this past March 2011 bottomed out at $789.7 Billion. (See graph below).   

 

This growth in outstanding credit card debt shows how dependant on credit cards we are as a society and as well as a pressure release of consumer weariness from personal budget tightenting. 

 

If you would like a link to this article please fill out our contact form and we'll be glad to send you a link.

 

Kenneth Feyl

President

KBS Enterprises

KBS Commentary - 8/12/11

 

InsideARM Article - July 29, 2011

Porfolio Recovery Associates and Asset Acceptance Report Record Earngings

By Patrick Lunsford 

 

 

Two of the largest debt buyers reported record earnings in Q2 of 2011. We at KBS Enterprises may not agree with the business model that some of hte largest debt buyers have chosen. Yet, this shows the industry strength as well as the opportunity that is available in a down turned economy.

 

If you would like a link to this article please fill out our contact form and we'll be glad to send you a link.

 

Kenneth Feyl

President

KBS Enterprises

KBS Enterprises News

July 27, 2011 

 

 

With it's latest portfolio acquistion, KBS Enterprises now has $2.34 M in face value assets that are being managed.  As we continue to grow, we continue to strive to reach our goals of helping those hardest hit in our economy take steps to regain their financial footing.

 

Kenneth Feyl

President

KBS Enterprises

KBS Commentary - 7/23/11

 

InsideARM Article - July 21, 2011

Troubles Continue for Credit Card Collection Actions

By InsideARM

 

"Recent decisions in New Jersey and Maine demonstrate the growing burden courts are placing on creditors and debt buyers in credit card debt collection actions"

 

To establish ownership, copies of the bank’s “computerized and hard copy books and records” on which the affiant’s statement was based had to be attached to the affidavit. The “Debtor’s File Balance Report” that a debt buyer’s attorney puts together is not enought to establish account balance as it's "not accompanied by an affidavit supporting its authenticity or establishing that it was prepared by a person with personal knowledge of the credit card account"

 

 

This is the most recent confirmation that those companies that take a litigation approach to debt collection are facing growing regulation and expense to continue this way of collections.  An incredible advantage to buying the accounts directly from the bank is the ability to obtain this information, not for litigation purposes but for verification of debt when a customer disputes the debt with the collection agency.

 

 

If you would like a link to this article please fill out our contact form and we'll be glad to send you a link.

 

Kenneth Feyl

President

KBS Enterprises

KBS Commentary - 7/23/11

 

Wall Street Journal Article - July 21, 2011

Layoffs Deepen Gloom

By Conor Dougherty

 

Increasing layoffs are adding to fears that the economic recovery is continuing to show signs of continuing to be sluggish.  Only and avgerage of 21,500 new jobs were added the last 2 months. 

 

We could see the unemployment rate potentially tick up again for July.

 

As people continue to find it hard to find work or are currently being layed off we could also see a tick up in deliquency and charge off rates for credit cards.

 

In the first quarter of this year the charge off rate for consumer credit cards for all US Banks was 7.99% which is the highest of all the types of loans US Banks make. (from BankRegData.com) 

 

If you would like a link to this article please fill out our contact form and we'll be glad to send you a link.

 

Kenneth Feyl

President

KBS Enterprises

KBS Enterprises News

July 21, 2011 

 

 

With it's latest portfolio acquistion, KBS Enterprises now has $1.97M in face value assets that are being managed.  As we continue to grow, we continue to strive to reach our goals of helping those hardest hit in our economy take steps to regain their financial footing.

 

Kenneth Feyl

President

KBS Enterprises

KBS Commentary - 7/11/11

 

InsideARM Article - July 9, 2011

Texas Attorney General Launches Action against Encore Capital

By Patrick Lunsford 

 

Texas AG is taking action on the publicly traded debt buying firm Encore for "used falsified or otherwise inaccurate affidavits to support debt collection claims made in court and made little other effort to validate debts in advance of filing the lawsuits".  Encore disagrees with these statements as there is a pending settlement in a case addressing these issues already 

 

This is only the first of many actions that AG's accross the US may be taking against the largest debt buyers in the indudstry that utilize a litigation strategy and who have been so profiled in the news for cutting corners for documentation for debt ownership verification.     

 

If you would like a link to this article please fill out our contact form and we'll be glad to send you a link.

 

Kenneth Feyl

President

KBS Enterprises

KBS Commentary - 7/10/11

 

Wall Street Journal Article - July 9, 2011

Worries Grow Over Jobs

By Justin Lahart and Joe Light

 

New unemployment numbers were out for June and only 18,000 jobs were added to the economy last month and the unemployment rate ticked up to 9.2% with the "real" unemployment rate much higher at 16.2%.  "What this report showed was that even more workers dropped out of the Job Market"  There is a very interesting graph related to this article that shows the last 12mo. of job creation showing a bubble centered around the beginning of the year.  Definately worth watching as it relates to the charge off rates of the larger banks.

 

Overall what the unemployment rate and the rate of the economic recovery tells me is that this is good time to buy debt and that the time for collections will take longer.

 

If you would like a link to this article please fill out our contact form and we'll be glad to send you a link.

 

Kenneth Feyl

President

KBS Enterprises

KBS Commentary - 7/5/11

 

Wall Street Journal Article - July 5, 2011

Inside the Disappointing Comeback

By Jon Hilsenrath and Connor Dougherty

 

Two years into the recovery and it's plain to see that this is not a snap back recovery.  There are excellent graphs depicting the recovery of this recession with that of other recession recoveries in the past.  In this recovery Personal Disposable Income is the lowest of any recession recovery as well as bank lending, yet personal spending is above that of hte 1980 recession recovery.  The Federal Reserve Bank is reporting that banks have reduced money they make available through credit card lines from $3.04 Trillion to $2.69 Trillion. Also, the article points out that "to get back to 1990's debt to income ratio households would either need to pay down another $3.3 Trillion of debt or see their incomes rise $3.9 Trillion.  That's eqivalent to about 9 years worth of income growth in normal times."  Household indebtedness, the article states, is likely hte single biggest problem.  In 3Q2007 the debt to income ratio was 127% currently it is down to 112%.  Household debt gets paid down in two ways - actually repayment and by consumers defaulting on the debt.  As the jobs recovery remains sluggish and people continue to spend beyond thier income leveles we'll see that charged off debt remain steady.  

 

If you would like a link to this article please fill out our contact form and we'll be glad to send you a link.

 

Kenneth Feyl

President

KBS Enterprises

KBS Commentary - 7/5/11

 

Wall Street Journal Article - June 28, 2011

Rich? Have we got the Card for You

By Robin Sidel

 

US Credit Card default rate of all credit card loans at 7.2%.  Still double that of pre-recession rates of 3.7%

 

Credit card offers are now going out in droves, but only to those that are affluent already and who have enough credit cards already.

 

If you would like a link to this article please fill out our contact form and we'll be glad to send you a link.

 

Kenneth Feyl

President

KBS Enterprises

KBS Enterprises attends Limited Partners Summit in NYC 

June 28-29 

Kenneth Feyl

President

KBS Enterprises

KBS Commentary - 6/18/11

 

Wall Street Journal Article - June 17, 2011

Unemployment Claims Fall but Job Market Stays Weak

By Alan Zibel and Luca Di Leo

 

This article notes again the ongoing concern of job creation here in the US.  Wiht 414,000 initial jobless claims during the week ending June 11, 2011.  Most economists agree that under 400,000 in a week the labor market is adding more jobs than it is shedding.  The moving 4 week average of jobless claims is currently at 424,750.  "Data indicates that the economic reovery that started in Mid-2009 is losing steam." it is written in the article. As charge off rates historcially track with the umemployment rate - this forcasts a large charge off market as well.

 

Kenneth Feyl

President

KBS Enterprises

KBS Commentary - 6/18/11

 

Wall Street Journal Article - June 14 2011

States to Fight Lawsuit Accord

By Jessica Silver-Greenberg 

 

This article points describes the nature of a class action settlement that Encore Capital Group, which is the nation's largest debt buyer, is proposing.  They seek to pay $5.7 Million to the plantiffs due to flawed or all out fake affidavits.  This amounts to approximately $10 per person in the suit.  What would this lead to if agreed by the courts?  It would lead to more of the same as debt buyers that utilize a litigation strategy to collect would just see this as the cost of doing business as they still make out anyway despite any court issues they may face, when it amounts to only $10 per account.  We will see regulation changes coming in the ARM industry that relate to how consumers should be treated coming from all the issues that have appeared with the national debt buyers.  The litigation strategy they have as a business model will not function as it used to.  The debt sellers will be looking to debt buyers that won't trarnish thier good name in the credit industry. 

 

KBS Enterprises does not have a litigation strategy for debt collections and use Collection Agencies that also have the same philosophy - Treat the customer with dignity and respect -  Polite , Professional, Persistant.

 

If you would like a copy of this article please fill out our contact us form and I'll be glad to send you a link.

 

Kenneth Feyl

President

KBS Enterprises

KBS Commentary - 6/18/11

 

Wall Street Journal Article - June 13, 2011

Sluggish Hiring Seen as a Threat to Recovery

By Phil Izzo 

 

This article points out that the consistant slowdown in hiring is one of the major threats to our economic recovery.  Other potential "shocks" to our economy are: Goverment Budget / Debt Ceiling Decisions, Oil Prices, any other additional natural disasters like the flooding in the Midwest US or the earthquake in Japan.  As the national unemployment inched up to 9.1% last month and the "real" unemployment and under-employed is much higher, charged off credit card debt looks to remain elevated in the near future.

 

Kenneth Feyl

President

KBS Enterprises

 

KBS Enterprises News

May 27, 2011 

 

 

With it's latest portfolio acquistion, KBS Enterprises now has $1.65M in face value assets.  As we continue to grow, we continue to strive to reach our goals of helping those hardest hit in our economy by providing an opprotunity to take a step forward in their personal economic recovery.

 

Kenneth Feyl

President

KBS Enterprises

KBS Commentary - 5/27/11

 

Associated Press Article

Toubled Banks List Largest in 18yrs : FDIC

By InsideARM.com and AP May 24, 1011 

 

 

The AP reported the toubled bank list has reached an 18 yr high.  While many of the very large banks have really begun to deal with their balance sheets and distressed assets alot of the smaller banks are still working through their issues.  Most of these issues have revolved around mortgages -both commercial and residential.  We may not have seen the end of the banking issues particularly surrounding commerical mortgages.


 

The impact of this list is really to see who ends up being taken over by the FDIC and who then acquires the banks assets from the FDIC.  If no one bank takes over the assets then watch for the preverbial fire sale from the FDIC.  To view the Failed Bank List you can go to

 

http://www.fdic.gov/bank/individual/failed/banklist.html

 

 

 

Kenneth Feyl

President

KBS Enterprises

 

KBS Commentary - 5/24/11

 

Wall Street Journal Article

Job Engine Shifts to Higher Gear

By Sara Murray May 7-9, 2011

 

April showed that job hiring was increasing but not at a pace that will "bring down the unemployment rate down quickly".  Unemployment rose to 9.0% in April, up from 8.8% in March.  The article noted that the White House analyists feel that unemployment will slowly decrease to 8.2% by the end of next year, while some private sector predictions say that it may fall below 8%.  Only time will tell. 

 

What makes this relevant in our industry is that historically the charge off rates track with the unemployment rate, thus giving an indication of the potential supply of charged off's.  If someone doesn't have a job, it makes it hard to pay the bills.

 

If anyone reading this would like a link to the WSJ article I would be happy to send it to you.  Please mention it as you fill out our contact form.

 

Kenneth Feyl

President

KBS Enterprises 

KBS Commentary - 5/24/11

 

Wall Street Journal Article

Drawing Benefits Via a Debit Card, There's aFee for That

By Jessica Silver-Greenberg 

May 14-15, 2011

 

A facinating trend is happening in the banking industry, in that US States and Cities are turning to prepaid debit cards to distribute benefits to recipients, such as child support as well as unemployment.  Governments are turning to this as a cost saving measure as they do not have to process paper checks. A great thing for states struggling to make budgets meet decreased revenue.  As Jessica points out in her article these prepaid cards "escaped the crackdown" regarding interest rates, fees, and billing practices.  What this leads to is a miriad of fees from "in-activity fees" to "check balance fees".   The banks hope to make back lost fee revenue due to the recent law changes last year.  These fees further deepen a hole that many consumers cannot dig themselves out of and feel the on only way out is to defalut.  A very difficult position to be in for many people.

 

If anyone reading this would like a link to the WSJ article I would be happy to send it to you.  Please mention it as you fill out our contact form.

 

Kenneth Feyl

President

KBS Enterprises 

 

KBS Commentary - 3/30/11

 

Wall Street Journal Article

Encore Faulted on Documents

By Jessica Silver-Greenberg 

March 29, 2011

 

This article points out a particular facet of the debt buying industry in that there are times when a customer requests verification of ownership of debt by the current owner of the debt.  It noted that debt buyers buy their debt in large bulk purchases, and many times the "individual accounts lack information on the underlying debts."  This can be very true for older debt that is bought - primary, secondary, etc debt. 

 

The "fresh" debt that KBS Enterprises buys is bought directly from the original issuer of the debt and back up information including back statements as well as affidavits are available from the original creditor to substantiate the ownership of the debt in question.  We take debt ownership very seriously and take the appropriate steps to ensure that we have the document support when its requested by our customers. 

 

If anyone reading this would like a link to the WSJ article I would be happy to send it to you.  Please mention it as you fill out our contact form.

 

Kenneth Feyl

President

KBS Enterprises 

 

KBS Commentary - 3/21/11

 

Wall Street Journal Article

Welcome to Debtors' Prison, 2011 Edition

By Jessica Silver-Greenberg 

March 17, 2011

 

There are thousands of good people out there today being really hurt, humiliated, and taken advantage of by the bad apples in the asset recovery industry.  The strong arm, intimidating tactics by many collection agencies is uncalled for.  Its placing demands on a court and police systems that have much better use of their resources.  It's tearing famlies apart.  With unemployment still unusually high we should be reaching down and helping people out of their situations.  It is my belief that  people, in general, are good and conscientious.  Most people want to improve their lives and debt settlement may just be one way to help in that goal.  If you beat people while your down that will come back to you in some way. You get from the world what you put into the world.  So it also works the other way as well,  if your focused on helping those around you the universe will return that to you.  That is what we're focused on at KBS.  We diligently only seek companies to work with  who treat our customers with dignity and respect.   Simple.  

The asset recovery industry needs reform.  There is a website petition that you can sign to show your support of this industry's reform.  If this speaks to you please sign the petition - and if you have been abused from this industry it has a place for you to tell your story.

 

www.stopthesecriminals.com

 

If anyone reading this would like a link to the WSJ article I would be happy to send it to you.  Please mention it as you fill out our contact form.

 

Kenneth Feyl

President

KBS Enterprises 

New Online Website
KBS Enterprises launches its brand new Website! - 3/15/2011

KBS Commentary - 3/15/11

 

Wall Street Journal Article

Boom in Debt Buying Fuels Another Boom—in Lawsuits

By Jessica Silver-Greenberg 

November 28, 2010

 

This article points out exactly what is wrong with the asset recovery industry - particularly with some of the large players.  During these tough economic times why kick someone when they're down and sue them.  There is a better way to do business and that is why at KBS Enterprises we make sure any 3rd party collection agency we use treats people with the dignity and respect that we all deserve.  It all comes down to the golden rule - treat others the way you would want to be treated in the same situation.  It's very simple. 

 

At KBS we've made it a policy that we will never sue any of our customers that we acquire. PERIOD.  There will never be a good enough reason to do so.  Listen, if someone has fallen into hard times, it's not our job to push them down further, it's our job to help lift them back up. 

 

If anyone reading this would like a link to the WSJ article I would be happy to send it to you.  Please mention it as you fill out our contact form.

 

Kenneth Feyl

President

KBS Enterprises