Can Risk Be Outsourced? Understanding Your Downstream Partners’ Liabilities

In a recent blog post, Conerstone Support uses the metaphor of a stream to explain how risk works within the debt industry. "At the top of the stream is the credit grantor, the entity that originally extended credit to the consumer," and when it comes time to collect, the credit grantor may go "downstream" to "continue collection efforts."

The creditor, then, is reponsible for the stream from the moment it leaves their organization until the debt is collected, or until someone else takes full responsibility from the creditor.

In a sense, though, every stopping point along this metaphorical stream is the top of the stream -- by which I mean: each stop along the way -- creditor, debt buyer, collection agency, collection attorney -- is responsible, in a compliance sense, for what happens next.

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