Banks Often Not to Blame, Says Consumer Law Specialist

Published on:
6 April 2012 at 07:55 a.m. ET

Written by: Mike Bevel –

http://www.insidearm.com/news/00026546-banks-often-not-to-blame-says-consumer-la/

Manuel Newburger offers an interesting counterpoint to our recent arguments about where the responsibility lies for good data between creditors — in Newburger’s article, banks — and collection agencies:

Opposing view: Don’t blame the banks

In several articles this week, insideARM.com has argued that collection agencies may not always be at fault for disagreements with consumers. Sometimes, we suggested, the creditor has passed along bad information. (See: Where Does the Responsibility Fall When the Creditor’s at Fault? and Court Processes Complicate Consumer/Collector Relationships)

Newburger, however, sees it differently: “A demand that banks guarantee 100% accuracy at the instant of sale is simply unrealistic.”

After reading Newburger’s argument (“Losing faith in that proposition [that banks record transactions and customer records as accurately as possible] means losing faith in our entire credit system, with potentially incalculable impact.”), we’d love to hear your thoughts in the comments below.

Banks Often Not to Blame, Says Consumer Law Specialist

Mike Bevel

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