Navy Federal Credit Union Ordered To Pay $28.5M Over Bad Debt Collection Practices

Navy Federal Credit Union Ordered To Pay $28.5M Over Bad Debt Collection Practices

Navy Federal Credit Union offers customers — current and former military servicemembers and their families — a wide range of financial products and services, including loans that must be repaid. But when those customers fell behind on those payments, federal regulators allege that NFCU illegally threatened borrowers and restricted access to their accounts. To resolve these allegations, the company must now pay $28.5 million in refunds and penalties. [More]

More Than A Year After Corinthian Collapse, Students Still Waiting For Financial Aid Help

More Than A Year After Corinthian Collapse, Students Still Waiting For Financial Aid Help

Eighteen months after Corinthian Colleges Inc. completed its collapse – closing the remaining Heald College, Wyotech, and Everest University – tens of thousands of former students are still waiting to received some form of relief from the mountains of student loan debt they incurred to attend the defunct college.  [More]

Debt Collector Gets Out Of Lawsuit… By Buying The Lawsuit Out From Under The Plaintiff

Kieron Beard

When you sue a debt collector for allegedly violating federal law, that collector can’t just go behind your back, buy the debt on the cheap at auction and get the whole case dismissed, can it? That tactic worked for one collection agency and, depending on how a federal appeals court rules, it could lead to many other debt collectors buying their way out of legal trouble. [More]

What You Need To Know About New Rules Allowing Debt Collection Robocalls From Feds

Joe M. O'Connell

If you ask any American to name the things they love the most, they are sure to reply, “debt collectors, intrusive pre-recorded phone calls, and the federal government!” So today — under orders to do so from a piece of rushed, tacked-on legislation — the Federal Communications Commission released its final rules allowing the federal government and some of its contractors to make debt-collection robocalls to wireless lines. [More]

Xavier J. Peg

New Rules Would Require Debt Collectors Have Proof You Actually Owe Money

One of the most common complaints about debt collectors is that they harass people over debts that are either no longer owed, or weren’t owed in the first place. Federal regulators are now proposing rules that — among other protections — would cut down on these annoying, bogus collections actions by requiring that debt collectors have some sort of evidence that the person they are calling actually owes money. [More]

Petition Calls On FCC To Rethink Ruling Giving All Govt. Contractors Green Light To Make Robocalls

Dan Coulter

Earlier this month, the FCC released a controversial ruling, concluding that the law allowed the federal government — and all contractors working for the government — to place prerecorded/auto-dialed robocalls to consumers, so long as the calls are made for official government business. Today, a number of consumer advocates have officially petitioned the FCC to rethink its position and close this loophole. [More]

inajeep

FCC Confirms: Entire U.S. Government Allowed To Place Annoying Robocalls

Last fall, Congress passed — and the President signed — an emergency budget bill that opened up a loophole that allows federal agencies, and private companies working on the government’s behalf, to make debt collection robocalls. However, a recently released ruling from the Federal Communications Commissions makes it clear that the entire U.S. government is exempt from rules limiting the use of robocalls to American consumers, so long at it involves government business. [More]

John Oliver Buys $15M In Medical Debt, Then Forgives It

John Oliver Buys $15M In Medical Debt, Then Forgives It

We can tell you about the growing problem of medical debt and how hospitals are suing thousands of patients for having the gall to be both sick and poor, or how debt collectors screw-up and use illegal tactics to get paid for debts they often can’t even prove that anyone owes. But that’s nothing compared to the sight of a goofy English guy forgiving $15 million in medical debt he bought for pennies on the dollar. [More]

Nonprofit Hospitals Suing Poor Patients Without Telling Them They Qualify For Reduced Or Free Care

Nonprofit Hospitals Suing Poor Patients Without Telling Them They Qualify For Reduced Or Free Care

Given that nonprofit hospitals are tax-exempt, the general view is that their primary focus should be on providing care for those who need it rather than making using the court system to make those patients pay up. Almost all of these hospitals have programs to reduce bills for people living below or near the poverty line, but some are suing poor patients without ever telling them about these options. [More]

Here’s How To Tell The FCC How You Feel About New Debt Collection Robocall Loophole

Dan Coulter

Now that the government has carved out a loophole allowing it to place automated and/or pre-recorded robocalls to consumers to collect any debts owed to the federal government, the FCC is trying to come up with robocall rules that aren’t entirely awful. Consumers have a short window of time to chime in on these rules, so here’s how to share your feelings with the FCC. [More]

afagen

Supreme Court OKs Private Debt Collectors’ Use Of Prosecutors’ Letterhead To Make People Pay

What’s more likely to get you to pay a questionable debt: A notice from some debt collection company you’ve never heard of, or a letter from your state’s attorney general about that same debt? Some states allow certain private, for-profit debt collectors to use prosecutors’ letterhead in correspondence with consumers about debts, even though the American Bar Association looks down on the practice. This morning, the U.S. Supreme Court chimed in on the debate, unanimously giving its SCOTUS seal of approval, at least when it’s done with the state’s approval. [More]

FCC Trying To Minimize Annoyances From New Robocall Debt Collection Loophole

Jenn and Tony Bot

Last fall, a rider to a must-pass federal budget bill kicked down the barricade that has prevented government debt collectors from annoying hundreds of millions of consumers with auto-dialed, pre-recorded robocalls. Lawmakers hate the bill, but they won’t consider any legislation to close the loophole. The White House’s own analysis of the loophole shows that it won’t really bring in any more money, and could actually be a revenue loser, but the administration isn’t doing anything to roll back the changes. Attorneys general hate it too, but they enforce laws instead of writing them. With an August deadline looming, the Federal Communications Commission has no choice but to move forward with making the loophole as palatable as possible. [More]

Rich

7 Things To Know About Why So Many Debt Collection Lawsuits Are Filed In Nebraska

When a debt collector decides to file a lawsuit against an alleged debtor, that decision might have more to do with where the defendant lives than with how much they allegedly owe.  [More]

(khrawlings)

Restricting Debt Collection Doesn’t Limit Credit Availability

While federal law already prohibits a wide range of unscrupulous debt-collection practices, some states have gone further, enacting laws and regulations to limit collectors’ ability to pursue repayment. The collections industry claims these restrictions hinder consumers’ access to credit, a new report says that just isn’t the case.  [More]

Justice Department Advises Against Throwing Poor People In Jail For Not Paying Fines

Rick Drew

While debtor prisons have long been outlawed, failure to pay a court-ordered fine or fee can get you locked up. But in a letter sent yesterday to state court administrators, the Department of Justice advises against using the penal system as a way to collect debts. [More]

Student Loan Companies Tell Congress: Debt-Collection Robocalls Are In Borrowers’ Best Interest

(thisisbossi)

Show me someone who supports robocalls, and I’ll show you someone that has very few friends. Which is why it’s baffling that the Senate has yet to act on a bill introduced last fall that would close a loophole allowing the government to make debt-collection robocalls. But you know who does support robocalls? The student loan companies that are currently trying to convince Congress that these invasive annoyances are really for our benefit. [More]

(alexkerhead)

Lawmakers Renew Push To Curb Unwanted Robocalls

In the last few days, legislators in both the House and Senate have once again pushed the issue of nuisance pre-recorded, auto-dialed robocalls back into the spotlight — urging telecom providers to give customers more tools for blocking these calls, and trying to roll back the government’s ability to abuse robocalls for its own debt-collection purposes. [More]

Citibank Caught Screwing Up Credit Card Debt Collections, Must Refund $5M

Citibank Caught Screwing Up Credit Card Debt Collections, Must Refund $5M

If you had a hunch that Citibank’s credit card division wasn’t terribly good at its job, you were right. Citi sold credit card debt to buyers with inflated interest rates, failed to tell those debt buyers when it accepted payments on these cards after the debt had been sold. [More]