Bridgeforce highlights existing challenges and common missteps to managing
bankruptcy while providing a new customer-centric approach.
Chadds Ford, PA, April 9, 2015 – Bridgeforce, a specialized multi-national consulting firm, analyzes
the challenges and complexities innate to financial institutions’
handling of consumer bankruptcies with the release of a white paper that
outlines an enterprise approach to close the gap between the product-centric
view of financial institutions and the more holistic view of the bankruptcy
courts while minimizing compliance risk.
The new Bridgeforce white paper entitled,
Shining the Light on Antiquated Consumer Bankruptcy Processes, highlights how the variances that exist at the case, jurisdiction and
state level in combination with the inherent vulnerability of bankrupt
customers have contributed to growing scrutiny from the U.S. Trustee Program
and Bankruptcy Courts.
“While higher visibility issues such as Consent Orders, Fair Lending,
and SCRA have taken much of the spotlight, consumer bankruptcy has crept
up as a persistent industry challenge” said Brian Reiss, President
of Bridgeforce. “The financial industry has long been playing with
the wrong players on the field with the wrong equipment in this space
and the time to address these challenges is now.”
Key sections of the paper include:
- Ensuring that highly skilled resources, with a mix of legal and operations
backgrounds, are in place to manage the complexities of the Federal Bankruptcy
Code and Rules
- Descriptions of best practices to mitigate common challenges faced across
the industry including automated notification and case updates, required
accounting/payment tracking capabilities and content verification practices,
among others
- Elements of a Centralized Customer-Centric Bankruptcy unit to manage/oversee
the bankruptcy process from notification to discharge or dismissal
Just last month, a $50 million settlement between JPMorgan Chase and the
U.S. Trustee Program further supported the need for ongoing attention
in this segment as Cliff White (USTP Director) stated “This settlement
should signal once again to banks and mortgage servicers that they cannot
continue to flout legal requirements, compromise the integrity of the
bankruptcy system and abuse their customers in financial distress. …
Other servicers should take note that the U.S. Trustee Program will continue
to police their practices and will work to ensure that those who do not
comply with bankruptcy law protections for homeowners will pay a price.”
[1]
Financial institutions are facing impending scrutiny surrounding consumer
bankruptcy. Kurt Kline, Managing Partner of Bridgeforce Law, P.C. warns
institutions to “Maintain focus on the fact that people declaring
bankruptcy can be significantly vulnerable and financially distressed,
and errors will not be tolerated by regulators.”
Contact:
Andy Feld
Marketing Director
302-228-4508
asfeld@bridgeforce.com
[1] http://www.justice.gov/opa/pr/us-trustee-program-reaches-50-million-settlement-jpmorgan-chase-protect-homeowners-bankruptcy