West Virginia Woman Sues Wells Fargo Over Alleged Home Loan Modification Misrepresentations

West Virginia Woman Sues Wells Fargo Over Alleged Home Loan Modification Misrepresentations

When you’re going through the often-tedious process of refinancing your mortgage, getting some bad information can only serve to make things worse. That’s why a West Virginia woman is suing Wells Fargo, alleging that the bank told her to stop making loan payments then put her into collections and foreclosure.
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Law Firm Must Pay $3.1M For Operating Automated Debt-Collection Lawsuit “Factory”

Law Firm Must Pay $3.1M For Operating Automated Debt-Collection Lawsuit “Factory”

A Georgia-based law firm behind hundreds of thousands of debt-collection lawsuits, and its principal partners, have agreed to pay a total of $3.1 million in penalties to settle federal accusations that they were operating a lawsuit mill in violation of the law. [More]

7 Things We Learned About Federal Student Loans & The Companies That Profit From Them

7 Things We Learned About Federal Student Loans & The Companies That Profit From Them

Fifty years ago, Congress created the federal loan program as a way to help Americans realize their dreams of a better life through higher education. While millions of students have no doubt benefited from the program, millions of others have found themselves burdened by mountains of debts, fielding calls from debt collectors and loan servicers, and watching as their paychecks are whittled down by garnishments. Today, seven million former college students are in default with a record $115 billion in federal loans. While those figures may be oppressing borrowers, it’s providing a stream of income – and profit – for companies contracted by the government to collect payments from debtors.  [More]

Debt Collector Must Pay $2.5M In Refunds, Penalties For Illegally Collecting Consumers’ Old AT&T Debt

Debt Collector Must Pay $2.5M In Refunds, Penalties For Illegally Collecting Consumers’ Old AT&T Debt

Federal regulators continued their fight against unscrupulous debt collectors today, ordering a Massachusetts organization to pay $2.5 million in refunds and penalties for illegally collecting unverified debt and providing inaccurate information to national credit reporting agencies.  [More]

Data Shows Borrowers With Less Student Loan Debt More Likely To Default

Data Shows Borrowers With Less Student Loan Debt More Likely To Default

When you hear about someone defaulting on their student loans, you might assume this borrower took out several tens of thousands of dollars to pay for their education. But a look at the data shows that those borrowers who are most likely to default are often the ones who owe the least.
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(Donkey Hotey)

Student Loan Debt For Recent College Graduates Increases Again

With college tuition prices continuing to rise, you might assume that college students are entering the real world with more debt on their shoulders.  According to a new report, that assumption would be correct.
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Wells Fargo Reportedly Under Federal Investigation Related To Student Loan Servicing

Wells Fargo Reportedly Under Federal Investigation Related To Student Loan Servicing

According to a new report, Wells Fargo is the latest big-name bank to be scrutinized as part of the Consumer Financial Protection Bureau’s ongoing investigation into student loan servicing practices.
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Legislation Once Again Takes Stab At Allowing Borrowers To Refinance Student Loans

Legislation Once Again Takes Stab At Allowing Borrowers To Refinance Student Loans

Lawmakers have renewed their support for students buried under piles of educational debt by — yet again – introducing a bill that would allow borrowers to refinance their student loans. [More]

Accounting Giant PwC Unveils Plan To Help Pay Down Employees’ Student Loans

Accounting Giant PwC Unveils Plan To Help Pay Down Employees’ Student Loans

When you’re a huge international consulting and auditing firm that hires some 11,000 recent college graduates every year, you want to have a benefits package that appeals to candidates’ needs. That’s why PricewaterhouseCoopers has unveiled a new program to help pay down employees’ student loan debt.
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The Country’s Two Largest Debt Buyers Must Refund Consumers $61M Over Illegal Collection Practices

The Country’s Two Largest Debt Buyers Must Refund Consumers $61M Over Illegal Collection Practices

Encore Capital Group and Portfolio Recovery Associates are two of the biggest names in the debt-buying game, and according to federal regulators they have often used deceptive and harmful tactics to collect their newly acquired debts. Now, as a result of these actions, the companies must refund consumers $61 million and pay $18 million in penalties. [More]

Corinthian Students Continue To Wait For Debt Relief As Department Of Ed. Reviews More Than 7,800 Claims

Corinthian Students Continue To Wait For Debt Relief As Department Of Ed. Reviews More Than 7,800 Claims

The tens of thousands of students seeking debt relief from the federal government after for-profit education chain Corinthian Colleges Inc. closed its Everest University, WyoTech and Heald College campuses, will have to wait a little longer, the Department of Education said Thursday as it provided an update on the number of federal student loans it has discharged and that are currently under consideration. [More]

Are Student Loan Forgiveness Programs Just A Free Pass For Grad Students With More Than $100K In Debt?

Are Student Loan Forgiveness Programs Just A Free Pass For Grad Students With More Than $100K In Debt?

Just two years ago, the Consumer Financial Protection Bureau estimated that nearly 33 million American workers eligible for student loan forgiveness weren’t taking advantage of the programs. Times have certainly changed, as the federal government earlier this year revealed that these program were now so popular they cost nearly $22 billion more than they anticipated. But it doesn’t appear the increase in use for such plans is by those who might benefit the most. [More]

(The.Comedian)

Auto Loan Debt Tops $1 Trillion For First Time; All Consumer Debt Nearing $12 Trillion

Now that the Great Recession has gone from “is it really over?” to “remember when?” more Americans are buying cars, pushing auto loan debt beyond the $1 trillion mark for the first time in U.S. history. [More]

Citigroup Facing Federal Investigation Into Student Loan-Servicing Practices

Citigroup Facing Federal Investigation Into Student Loan-Servicing Practices

Just last month federal regulators announced that an ongoing probe into potentially unscrupulous student loan-servicing practices resulted in nearly $18.5 million in refunds and fines from Discover Bank. Now, regulators appear to have Citigroup in their crosshairs, as the financial company announced it was party to an investigation. [More]

Nearly 80% Of Americans Hold Some Form Of Debt, But It Isn’t Always Bad

Nearly 80% Of Americans Hold Some Form Of Debt, But It Isn’t Always Bad

When most people think of debt, they probably conjure up a vision of consumers struggling to make ends meet after making unwise financial decisions. But that actually isn’t the case for most Americans. In fact, like other things, debt in moderation is actually a good thing. [More]

Bill Would Allow Consumers To Sue When Bankrupt Debt Isn’t Removed From Credit Reports

Bill Would Allow Consumers To Sue When Bankrupt Debt Isn’t Removed From Credit Reports

Under federal law, when someone erases a debt in bankruptcy, their bank is required to update their credit reports to indicate the debt is no longer owed. To ensure this happens, legislators have introduced a new bill that would give credit card borrowers with inaccurate credit reports the power to sue their bank or a third-party debt buyer for damages if they continue to send so-called zombie debt to credit reporting agencies. [More]

Former Corinthian College Students Seek To File $2.5B Claim Against Bankrupt For-Profit Operator

Former Corinthian College Students Seek To File $2.5B Claim Against Bankrupt For-Profit Operator

Former students of now-defunct for-profit education chain Corinthian Colleges continued their fight to recoup the money they spent on classes at the company’s Heald College, WyoTech or Everest University campuses, filing a $2.5 billion claim against the bankrupt educator.
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Discover Bank Must Pay $18.5 Million Over Illegal Student Loan Servicing Practices

Discover Bank Must Pay $18.5 Million Over Illegal Student Loan Servicing Practices

As federal regulators continue to probe potentially unscrupulous student loan servicing practices, the Consumer Financial Protection Bureau has ordered Discover Bank and its affiliates to pay nearly $18.5 million in refunds and fines for, among other things, overstating amounts due on student loans and failing to notify borrowers of their rights. [More]