Search results for: debt collection

(D. Michelson)

25 States Urge Betsy DeVos To Not Let Student Loan Companies Sidestep The Law

Since Betsy DeVos took over as Secretary, the Department of Education has been — to put it mildly — generous to the student loan industry. Through DeVos, the Trump administration has stopped cooperating with federal financial regulators to rein in unscrupulous loan servicers, and announced its plan to put all federal student loan accounts into the hands of a single company. But several states are letting it be known that they will not go easy on student lenders and servicers, even if they ask nicely. [More]

California Accuses Retailer Of Using Bait-And-Switch Tactics To Lure In Customers

California Accuses Retailer Of Using Bait-And-Switch Tactics To Lure In Customers

A Los Angeles-area chain of retail stores is accused by the state of repeatedly misleading customers into thinking they were going to get a good price on merchandise only to be told after they get into the store that the only way to get that advertised price is if they spend more money. [More]

(Scurzuzu)

Company That Sold Fake Payday Loan Debts To Collectors Must Pay $4.1M

We’ve heard it before: A debt collection company engaged in a “phantom” debt scheme in which they try to entice unsuspecting individuals into paying debts they don’t actually owe. While federal regulators have cracked down on these unscrupulous organizations in the past, they are now turning their attention to the companies providing information on these supposed debts. To that end, the Federal Trade Commission today ordered one such data company to pay $4.1 million.  [More]

Adam Fagen

Bank-Backed Congressman Praises Betsy DeVos For Cutting Ties With Consumer Protection Agency

Congressman Jeb Hensarling of Texas, whose campaign has received more than $8 million from the financial sector since 2010, has long endeavored to undercut the Consumer Financial Protection Bureau, an agency that regulates many of the businesses that keep Hensarling’s election campaigns flush with contributions. So it’s of little surprise that the lawmaker is thrilled at Education Secretary Betsy DeVos’ recent decision to stop working with the CFPB on student loans — even though the Bureau has returned hundreds of millions of dollars to screwed-over student borrowers. [More]

Student Loan Debt Relief Operations Allegedly Bilked $95M From Borrowers

Student Loan Debt Relief Operations Allegedly Bilked $95M From Borrowers

The federal government and 11 states have joined together to accuse 30 purported debt relief operations of using deception and false promises to swindle more than $95 million from student loan borrowers. [More]

Jeweler, Wife Face Criminal Charges Of Preying On Military Servicemembers

Jeweler, Wife Face Criminal Charges Of Preying On Military Servicemembers

Among unethical retailers, there’s a certain subset of predators that target members of the armed forces and their family. The latest example: A California couple who pushed military personnel to finance their purchases with a related business, then allegedly made illegal threats when customers fell behind on their bills.
[More]

HerArtSheLoves

Student Lender, Debt Collector To Refund More Than $3.5M To Borrowers

Two months after private student loan lender National Collegiate Student Loan Trust came under scrutiny amid reports that the company, along with its debt collector TransWorld, filed illegal student loan debt collection lawsuits against defaulted borrowers without citing proper or correct paperwork, federal regulators have ordered the companies to pay $21.6 million in refunds and penalties, and revise their collection practices.  [More]

Adam Fagen

CFPB Asks Education Secretary DeVos To Not Give Up On Protections For Student Loan Borrowers

A week after Secretary of Education Betsy DeVos essentially broke up with the Consumer Financial Protection Bureau, ending the agencies’ agreements to work together to root out bad players in the student loans servicing arena, the CFPB is firing back, accusing DeVos of misunderstanding just what the Bureau does. [More]

(This Year's Love)

Feds Shut Down Debt Collector That Allegedly Collected $2.1M In Unowed Debts

Once again, as part of its ongoing efforts to crack down on unscrupulous debt collectors, the Federal Trade Commission has accused a North Carolina company of running a “phantom” debt collection scheme that went after people for money that they did not actually owe. [More]

Birchbox Is For Sale, Maybe To Walmart

Birchbox Is For Sale, Maybe To Walmart

Birchbox is a site that sells high-end makeup, and $10 sample box subscriptions that entice customers to try new types of high-end makeup. Walmart is a discount mega-retailer that sells lots of makeup, but hardly any of it is high end. Yet Birchbox could join the Walmart family if a rumored deal goes through. [More]

bluwmongoose

Huge Collection Fees Making It More Difficult For Cash-Strapped Students To Afford College

Each year, millions of college students rack up student loans that won’t come due until they leave school. But even with financial aid, some students have trouble keeping up with the soaring costs of tuition, and once that debt ends up in the hands of a collection agency, the amount can mushroom out of control while the student is still in school.  [More]

Google

Google’s Tracking Of Offline Spending Sparks Call For Federal Investigation

Google recently announced a suite of new tools for advertisers, allowing them to link a customer’s offline credit card purchases with the things they look at online. Shockingly, some privacy advocates think this sort of tracking goes too far and have called on the federal government to investigate. [More]

aresauburn™

Dept. Of Education Hasn’t Approved A Loan Forgiveness Claim In Six Months

When Education Secretary Betsy DeVos hit “reset” on revamped Borrower Defense rules that aim to ensure students at troubled schools weren’t left with nothing but debt if their college collapsed, she noted that students who had already submitted claims for loan forgiveness wouldn’t be affected. But that doesn’t appear to be the case, as the Dept. hasn’t approved a single application in nearly six months.  [More]

HerArtSheLoves

From Forbearance To Garnishments: 5 Things We Learned About Student Loan Debt Collection

Student loans are big business, both for private lenders and the federal government. And with $1.4 trillion dollars in education debt outstanding, it should come as no surprise that these companies and the government would want to recoup these costs. However, that often comes at a cost to borrowers, from those who have fallen on hard times, to those failing to receive proper notice and options from servicers, or those who believe they were defrauded by the educators who promised them a better life. [More]

Jeff

Student Loan Company With Allegedly Shoddy Recordkeeping Under Investigation

New York Attorney General Eric Schneiderman’s office has opened an inquiry into the business practices of National Collegiate Student Loan Trust following reports that the company often files collection lawsuits against defaulted borrowers without proper or correct paper. [More]

Sapurah Lashari

$5 Billion In Private Student Loans Could Be Wiped Away Because Of Shoddy Record Keeping

Wiping away private student loans is a difficult, almost impossible task, for borrowers. But some debtors are finding their tabs zeroed out as the result of a long-running legal battle between former students and a group of student loan creditors attempting to collect on defaulted loans. In the end, the courts could forgive up to $5 billion in private education loans if the creditor continues to fail in providing critical paperwork.  [More]

frankieleon

Debt Collector Allegedly Threatened Lawsuits, Arrests Against People Who Didn’t Owe Anything

Once again, federal regulators are cracking down on companies running “phantom” debt collection schemes that go after individuals for money they did not actually owe. This time, the Federal Trade Commission shut down an operation that collected more than $690,000 in fake debts by threatening consumers with lawsuits or arrests.  [More]

Phillip Pessar

Here Are The 331 Stores Gymboree Plans To Close

Last month, children’s clothing retailer Gymboree announced that it would be filing for Chapter 11 bankruptcy to help it get out from more than $1.4 billion in debt. Part of its reorganization would also include closing some stores, and a month later, the chain has released its initial list of store closings. [More]