Why Didn’t Dept. Of Education Find Problems With Loan Servicer Fined $100M?

Why Didn’t Dept. Of Education Find Problems With Loan Servicer Fined $100M?

Last May, investigations by the Department of Justice and the Federal Deposit Insurance Corporation into student loans servicing resulted in a $100 million fine against government-contracted servicer Navient for allegedly violating federal laws limiting the amount of interest that can be charged on servicemember student loans. Following those investigations, the Department of Education undertook a review that found its four servicers – including Navient – weren’t cheating military personnel. With such conflicting reports, members of Congress are now getting involved, calling for an investigation into the Dept. of Education’s review process. [More]

Bank Of America Must Pay $30M For Military Relief Law Violations

Bank Of America Must Pay $30M For Military Relief Law Violations

The Servicemembers Civil Relief Act (SCRA) aims to protect members of the Armed Forces from unfair and harmful practices that jeopardize their financial well-being while deployed. It shouldn’t be surprising then, that failing to adhere to those protections is frowned upon by federal regulators. Just ask Bank of America, which is now on the hook for $30 million stemming from SCRA violations related to more than 73,000 servicemember accounts. [More]

USA Discounters: Where A $650 Laptop Ends Up Costing Army Private $8,626

The USA Discounters website advertises its financing for military servicemembers and government employees.

A discount retailer that sells itself as being friendly to military borrowers has been pushed into the spotlight, thanks to a report highlighting questionable lending and marketing tactics that lead some borrowers into lawsuits where they can’t reasonably defend themselves. [More]

Sallie Mae, Navient To Pay $97M To Settle Servicemember Student Loan Violations

Sallie Mae, Navient To Pay $97M To Settle Servicemember Student Loan Violations

Taking advantage of members of the military isn’t looked upon lightly by federal regulators. This idea was driven home today by the Depts. of Education and Justice, and the Federal Deposit Insurance Corp., who jointly announced a sizable settlement against student loan servicers Sallie Mae and Navient for overcharging and imposing excessive fees to military members.
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(frankieleon)

Banks Uncover Additional Wrongful Foreclosures On Military Members

The Servicemembers Civil Relief Act (SCRA) is intended, in part, to help protect active-duty members of the armed forces from having their homes taken away by foreclosure, but as we’ve seen, this hasn’t stopped banks from ignoring the law and taking those houses anyway. Now comes a report that banks have recently uncovered hundreds of additional wrongful foreclosures on the homes of servicemembers. [More]

Why Do So Many Servicemembers Not Receive Mortgage Protections They Have Legal Right To?

Why Do So Many Servicemembers Not Receive Mortgage Protections They Have Legal Right To?

The Servicemembers Civil Relief Act (SCRA) includes a number of protections for members of the armed forces who took out a mortgage before going on active duty. But as we have learned in recent years, there are at least 15,000 instances where banks failed to follow those guidelines — and hundreds — perhaps thousands of times where lenders have illegally foreclosed on servicemembers’ homes. [More]