When you’re a huge international consulting and auditing firm that hires some 11,000 recent college graduates every year, you want to have a benefits package that appeals to candidates’ needs. That’s why PricewaterhouseCoopers has unveiled a new program to help pay down employees’ student loan debt.
Encore Capital Group and Portfolio Recovery Associates are two of the biggest names in the debt-buying game, and according to federal regulators they have often used deceptive and harmful tactics to collect their newly acquired debts. Now, as a result of these actions, the companies must refund consumers $61 million and pay $18 million in penalties. [More]
Corinthian Students Continue To Wait For Debt Relief As Department Of Ed. Reviews More Than 7,800 Claims
The tens of thousands of students seeking debt relief from the federal government after for-profit education chain Corinthian Colleges Inc. closed its Everest University, WyoTech and Heald College campuses, will have to wait a little longer, the Department of Education said Thursday as it provided an update on the number of federal student loans it has discharged and that are currently under consideration. [More]
Are Student Loan Forgiveness Programs Just A Free Pass For Grad Students With More Than $100K In Debt?
Just two years ago, the Consumer Financial Protection Bureau estimated that nearly 33 million American workers eligible for student loan forgiveness weren’t taking advantage of the programs. Times have certainly changed, as the federal government earlier this year revealed that these program were now so popular they cost nearly $22 billion more than they anticipated. But it doesn’t appear the increase in use for such plans is by those who might benefit the most. [More]
Now that the Great Recession has gone from “is it really over?” to “remember when?” more Americans are buying cars, pushing auto loan debt beyond the $1 trillion mark for the first time in U.S. history. [More]
Just last month federal regulators announced that an ongoing probe into potentially unscrupulous student loan-servicing practices resulted in nearly $18.5 million in refunds and fines from Discover Bank. Now, regulators appear to have Citigroup in their crosshairs, as the financial company announced it was party to an investigation. [More]
When most people think of debt, they probably conjure up a vision of consumers struggling to make ends meet after making unwise financial decisions. But that actually isn’t the case for most Americans. In fact, like other things, debt in moderation is actually a good thing. [More]
Former students of now-defunct for-profit education chain Corinthian Colleges continued their fight to recoup the money they spent on classes at the company’s Heald College, WyoTech or Everest University campuses, filing a $2.5 billion claim against the bankrupt educator.
As federal regulators continue to probe potentially unscrupulous student loan servicing practices, the Consumer Financial Protection Bureau has ordered Discover Bank and its affiliates to pay nearly $18.5 million in refunds and fines for, among other things, overstating amounts due on student loans and failing to notify borrowers of their rights. [More]
Two months ago, the Consumer Financial Protection Bureau took the first steps in tackling issues within the student loan servicing arena by asking consumers and organizations to share their thoughts on the state of an industry that is tasked with recouping the more than $1.2 trillion in outstanding student loan debt in the U.S. Now, as the deadline to submit comments has come and gone, we know a bit more about just how the industry is perceived by those tasked with sticking up for consumers. [More]
Former Corinthian College students left with piles of debt after the company closed its Heald College, Everest University and WyoTech campuses earlier this year are getting a bit more relief, as the Department of Education announced it would temporarily suspend some legal actions related to borrower’s defaulted loans. [More]
Thousands of recent high school graduates in Oregon now have the chance to attend community college without the worry of accumulating loads of debt they may never be able to pay back, as lawmakers in the state recently approved a bill to establish the second program in the country to offer students help in paying for college. [More]
The Florida Attorney General’s Office and the Federal Trade Commission make a pretty effective pair when it comes to putting an end to companies and operations taking advantage of consumers. Just a day after the regulator and state’s attorney general teamed up to sue a company behind medical alert robocalls, the two entities announced they shut down a debt relief scheme that took million from consumers with credit card debt. [More]
What happens when you combine expensive — and often unanticipated — medical bills and overzealous debt collectors? An environment ripe for abusive, unfair collection practices. At least that appears to be the case for an operation that must pay $5.4 million in relief to consumers for allegedly mishandling credit reporting disputes and preventing individuals from exercising their debt collection rights. [More]
Last year, the Consumer Financial Protection Bureau brought our attention to a relatively new phenomenon in which more and more private student loan borrowers found themselves placed in automatic default – even if they were up-to-date on payments – when their co-signer died or filed for bankruptcy. While the agency and consumer advocates urged these borrowers to seek co-signer release from their lenders, a new report finds that’s simply hasn’t been possible. [More]
Back in March, the Consumer Financial Protection Bureau took its first long-awaited step in reining in the payday loan industry by releasing an outline for potential regulations over the small-dollar lines of credit known to thrust consumers into a devastating cycle of debt. While consumer groups were quick to applaud the steps, they also expressed concern that more could be done to protect people from the devastating consequences of such loans. This week, Pew Charitable Trusts released a video detailing the predicament nearly 12 million Americans face every year when taking out payday loans and how regulators might be able to find an answer. [More]