Under the Fair Debt Collection Practices Act, it is illegal for debt collection firms to use false, deceptive, or misleading representations to collect a debt. One Ohio company apparently didn’t follow this rule when sending consumers letters that claimed attorneys were involved in the collection of their debts, and now it’s facing a lawsuit from federal regulators. [More]
What’s worse than being overwhelmed by medical debt after a hospital stay or doctor’s visit? Being told you owe money for healthcare procedures and services you never received. Yet, a new analysis of federal data shows that too many Americans are being pestered to pay off medical debt that they don’t actually owe. [More]
The Internal Revenue Service has released additional details about its new program that turns certain delinquent accounts over to private debt collectors, giving us some idea of when these collection calls will begin, and how many accounts will be affected.
One way to erase federal student loan debt is to work for the government or at a non-profit for 10 years. However, thousands of people who received notices from the Department of Education that their federal student loans were going to be forgiven through this program may still be on the hook for this debt, as the Department now says these notices are not binding. [More]
While expensive medical emergencies can hit anyone, anywhere in the U.S., a new report finds that one region of the country has a higher level of medical debt than the rest of the states. [More]
For many younger consumers, each new year used to bring a new address, whether that meant switching from an apartment to a house, or following their dreams across the country. But the latest generation of millennials apparently aren’t on board with that. [More]
Payless, the ubiquitous discount shoe retailer with more than 4,400 stores in 30 countries, is reportedly looking to cut back on its ubiquity. Just like just about every other retailer in your local mall, especially the ones that sell clothing, the company has too many stores and too much debt. [More]
For years, Consumerist has written about unscrupulous debt collectors that have attempted — sometimes successfully — to collect thousands of dollars from consumers who don’t actually owe a debt. This type of scheme is apparently alive and well in Illinois, where investigators say the ploy is one of the most popular for alleged con artists preying on residents, prompting the state’s Attorney General to file suit against at least one such operation. [More]
In 2015, nearly 40% of all federal student loan borrowers over the age of 65 were in default, thanks in part to issues they faced when it came to the servicing of their debts, including problems enrolling in income-driven repayment plans and accessing protections as co-signers. [More]
With college tuition continuing to increase, it probably won’t surprise many people to learn that college graduates are leaving school burdened with more loan debt. According to a new report, the average amount of student loan debt for new graduates has passed $30,000 for the first time. [More]
The abrupt closure of ITT Educational Services’ 130 ITT Tech campuses left tens of thousand of current students sitting in limbo with regard to both their education and all the student loan debt they had amassed. Likewise, a number of recent ITT grads are holding degrees they believe are now worthless. A group of nearly 200 stranded ITT students and graduates are the latest to join the ongoing “debt strike” started after the collapse of Corinthian Colleges.