CFPB Report Finds 90% Of Student Loan Borrowers Who Seek Co-Signer Release Are Denied

CFPB Report Finds 90% Of Student Loan Borrowers Who Seek Co-Signer Release Are Denied

Last year, the Consumer Financial Protection Bureau brought our attention to a relatively new phenomenon in which more and more private student loan borrowers found themselves placed in automatic default – even if they were up-to-date on payments – when their co-signer died or filed for bankruptcy. While the agency and consumer advocates urged these borrowers to seek co-signer release from their lenders, a new report finds that’s simply hasn’t been possible. [More]

Pew Charitable Trusts Illustrates The Devastating Effects Of Payday Lending, How It Can Be Fixed

Pew Charitable Trusts Illustrates The Devastating Effects Of Payday Lending, How It Can Be Fixed

Back in March, the Consumer Financial Protection Bureau took its first long-awaited step in reining in the payday loan industry by releasing an outline for potential regulations over the small-dollar lines of credit known to thrust consumers into a devastating cycle of debt. While consumer groups were quick to applaud the steps, they also expressed concern that more could be done to protect people from the devastating consequences of such loans. This week, Pew Charitable Trusts released a video detailing the predicament nearly 12 million Americans face every year when taking out payday loans and how regulators might be able to find an answer. [More]


FTC Puts A Stop To Three Debt Collection Operations Using Threatening Text Messages, Robocalls

For the most part, we can’t say many glowing things about the debt collection industry that has, in the past, been known for using a litany of abusive and deceptive practices to pry money from consumers. Three such companies will no longer be bothering people after the Federal Trade Commission temporarily shut down the operations for engaging in nearly all of the hallmarks of shady collectors: threatening lawsuits or arrest, impersonating law enforcement and government officials and illegally contacting supposed debtors. [More]

(Hammerin Man)

Legislators Once Again Trying To Delay New Lending Protections For Military Personnel

The Department of Defense is trying to do something good for servicemembers by closing loopholes in the Military Lending Act that can leave military personnel vulnerable to predatory lenders. But these safeguards are now the target of a Congressman who has received substantial campaign contributions from payday lenders. [More]

(Taber Andrew Bain)

JPMorgan Chase, Bank Of America Agree To Wipe Debt Cleared By Bankruptcy From Credit Reports

Two of the country’s largest banks are finally getting around to removing the debt consumers eliminated during bankruptcy proceedings from their credit reports, a move that puts Bank of America and JPMorgan Chase in line with federal law. [More]

(Hammerin Man)

House Panel Strikes Provision That Would Delay Added Military Lending Act Protections

Yesterday we reported that Congress would make a decision whether or not it would intervene to slow the Department of Defense’s work to create new rules aimed at closing loopholes in the Military Lending Act that often leave military personnel vulnerable to predatory financial operations. Thankfully, legislators saw the need for more protections regarding military lending and determined the rules could go into effect as planned. [More]

The CFPB's electronic version of its Know Before You Owe Mortgage Toolkit includes interactive forms to help consumer find the right mortgage for them.  [Click to Enlarge]

CFPB Releases Mortgage Toolkit Aimed At Making The Home Buying Process Easier

In January, the Consumer Financial Protection Bureau released a report suggesting that many homebuyers spend more time looking for a TV than shopping around for the right mortgage. In an attempt to make things a little less daunting for prospective borrowers, the Bureau today released the “Know Before You Owe” mortgage shopping toolkit. [More]

(David Goehring)

“Bad Check” Debt Collector Deceptively Used Prosecutors’ Letterhead To Intimidate Consumers Into Paying High Fees

Late last year, Consumerist reported on a string of debt collectors paying to use prosecutors’ letterheads as a way to intimidate consumers into paying their debts. While the company facing the wrath of the Consumer Financial Protection Bureau today didn’t exactly pay to use the letterhead, they allegedly used the documents in a deceptive manner to get consumers to enroll in costly financial education programs. [More]

(Larry Troy)

Legislators Once Again Introduce Bill That Would Allow Student Loan Refinancing

If at first you don’t succeed try again…  and again, and again. That appears to be the approach members of Congress are taking when it comes to a bill that would allow student loan borrowers to refinance their private and federal student loans. [More]


Woman Wants To Back Out Of Buying House Saddled With $400K Debt, Blaming Winning Bid On Diet Pills

Feeling like maybe you shouldn’t have splurged on that shirt when you’ve already got a bunch like it already in your closet is one thing, but deciding you’d rather not own a home you purchased is an entirely other category of buyer’s remorse. A Florida woman is blaming her winning bid on a home that comes with a $400,000 debt on it on diet pills, saying they caused her to become confused. [More]

(Tim Schreier)

Student Aid Bill Of Rights Aims To Overhaul Federal Student Loan Repayment, Servicing Process

The way in which borrowers pay back their federal student loans – from checking the balance to filing complaints against servicers – is set to change with the signing of a presidential memorandum Tuesday. [More]

(Chris Blakeley)

Credit Bureaus Agree To Revamp Practices For Handling Errors, Unpaid Medical Bills

Experian, Equifax and TransUnion – the three largest companies to collect and disseminate credit information for millions of Americans – must undergo an overhaul of credit reporting practices as part of an agreement with the New York Attorney General’s Office. [More]

(Sapurah Lashari)

Senators Chastise Govt. For Making Money Off Struggling Student Loan Borrowers, Not Offering Enough Relief

For several years now the government has offered federal student loan forgiveness programs aimed at helping borrowers to avoid defaulting on their debts. While recent reports have shown that the popularity of the programs has exceeded expectations, a group of six senators say the Department of Education could do more given the billions of dollars in payments it receives from federal loans each year. [More]

A group of 15 Corinthian College students are refusing to repay their federal student loans.

Current, Former Corinthian College Students Go On “Debt Strike,” Refuse To Pay Private & Federal Loans

With for-profit educator Corinthian Colleges Inc. selling off campuses and closing schools, thousands of Everest, WyoTech, and Heald College students are waiting to learn the fate of the more than $1 billion in private and federal student loan debt used to finance their education. While the Department of Education and the Consumer Financial Protection Bureau have worked to secure deals in which some of that debt will be forgiven, some students are increasing the pressure on such deals by staging a “debt strike.” [More]

(Mike Mozart)

Target Owes Minnesota-Based Businesses $3.8M Over Failed Canadian Stores

Target Corporation isn’t the only company losing money by closing its Canadian division. The retailer owes nearly $3.8 million to more than 60 businesses in Minnesota. [More]

(Meneer Dijk)

New Requirement Aims To Curb Inaccurately Reported Medical Debt

Medical bills account for nearly half of all collections notices on consumers’ credit reports, affecting more than 43 million Americans. Meanwhile, it’s been shown that medical billing is fraught with errors and many consumers sent to collections for these debts are penalized too harshly. A new federal requirement hopes to reduce this overly negative impact of medical debt on credit reports. [More]

(daniel lobo)

Poll: 1-In-5 Consumers Say They’ll Die While Still In Debt

Millions of Americans dream of the day that they exit the dark, desolate tunnel of debt and can live their lives without owing money to anyone. But sadly, a new report finds that most consumers actually have little hope of ever being debt-free. [More]

Debt Collection Is A Great Line Of Work For Ex-Cons

When a debt collector calls you, there’s a good chance that he or she might be an ex-convict calling you from a strip mall in Buffalo, New York. Buying and collecting debt is a lucrative business, and some people who had a rough upbringing have a real gift for it. Learn about the “Buffalo Talk-Off” and the Excel Spreadsheets of Doom. [NPR] [Planet Money]