debt

(scurzuzu)

Feds Sue Four Online Payday Lenders For Collecting On Void Debts

Last year, federal regulators released a report that found online payday lenders — despite their clean, professional websites — could be just as bad, if not worse, than their storefront counterparts. Today, the Consumer Financial Protection Bureau provided yet another example of how these companies can wreak havoc on consumers’ finances by skirting the law.  [More]

aresauburn™

45% Of Americans Carry At Least $25,000 In Debt

If you owe creditors less than $5,000 (not including a mortgage) you’re in a rather small group of Americans with minimal debt. According to a new survey, nearly half the country owes at least $25,000 — and spends as much as half of their monthly income paying down their debt. [More]

Adam Fagen

Feds Sue Debt Collector That Allegedly Misrepresented Attorney Involvement

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]

frankieleon

Data Shows Too Many Americans Being Pestered About Medical Debt They Don’t Owe

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]

Adam Fagen

IRS Will Begin Working With Private Debt Collectors This Month

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.
[More]

(bradhoc)

The IRS Is Now Using Private Debt Collectors; Here’s What You Need To Know

After years of warning taxpayers that the IRS will never cold call you to collect a tax debt, things are about to change as the IRS begins handing over some of its debt-collection work to private firms who probably will call you. [More]

(This Year's Love)

When Education Dept. Said Your Student Loan Would Be Forgiven, It May Not Have Meant It

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]

Nicholas Eckhart

Report: Neiman Marcus Hires Investment Firm To Explore Debt Restructuring

Nearly a year after rumors began swirling that Neiman Marcus was in the market for a buyer in order to get out from a $5 billion debt load, the luxury department store has reportedly hired an investment bank to boost its bottom line. [More]

frankieleon

People In Southern States More Likely To Be Saddled With Medical Debt

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]

Great Beyond

Millennials Aren’t Moving Anywhere, Despite Fewer Obstacles

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]

Mike Mozart

Report: Payless Looking To Reduce Its Footprint, Close 1,000 Stores

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]

frankieleon

Illegal Debt Collectors Prey On Victims’ Doubts To Collect Money They Don’t Owe

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]

Mike Mozart

BCBG Max Azria Closing 120 Stores, Reportedly Looking At Bankruptcy Options

Following a trend set by Macy’s, Wet SealThe Limited, and others, mall mainstay BCBG Max Azria plans to close 120 stores at shopping centers around the country, and may file for bankruptcy protection. [More]

Feds Sue Debt Relief Law Firm For Charging Customers Illegal Fees

Feds Sue Debt Relief Law Firm For Charging Customers Illegal Fees

Nearly four years ago, federal regulators shut down a debt relief company — Morgan Drexen — accused of deceiving customers with promises of reducing their debt and charging illegal upfront fees to do so. While that company eventually paid $170 million to resolve the allegations, the Consumer Financial Protection Bureau Monday sued a related company using the same playbook.  [More]

PROMY PINK SOAPBOX

Student Loan Servicing Issues Contribute To Older Borrowers’ Defaults

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]

frankieleon

Lawsuit: Government Illegally Garnishes Disability Benefits To Repay Student Loans

Earlier this month, a Government Accountability Office report found that $171 million was garnished from older Americans’ Social Security benefits in order to repay federal student loan debts. Now, one of those borrowers is suing several government agencies accusing them of taking money from his monthly disability checks despite the fact he was eligible for a student loan discharge.  [More]

(Daniel Lobo)

Report: $171M Garnished From Older Americans’ Social Security To Repay Student Debt In 2015

It can take years, even decades, for student loan borrowers to repay their debts. To that end, a new report has found that tens of thousands of older adults – including senior citizens – continue to be saddled with mountains of student debt later in life, often having their government benefits cut to repay the costs.  [More]

Steven Depolo

Debt Relief Scammer Will Spend Two Years In Prison, Pay $1.2M In Refunds

Four years after federal regulators shut down a debt relief operation that promised to help customers pay down credit card debt, but in reality only relieved customers of their cash, a man who worked for the scheme has been ordered to spend two years in prison and to refund $1.2 million to his victims. [More]