UPDATE 3/27: A Treasury spokesperson responded to Consumerist’s request for comment in a statement on Monday, saying: “As his statement reflects, the Secretary clearly recognized that he generally may not promote private interests and specifically gave the legal disclosure that he was not promoting a movie, but answering a question he was asked directly.” [More]
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Sure, the idea of sitting on your couch in your boxers and picking a loan from a list of preselected lenders seems like an easy and fairly straight-forward process. But federal officials say the relatively new online lending industry is rife with potential risks and should be subjected to additional oversight. [More]
Earlier this year, the Consumer Financial Protection Bureau launched a public probe into potentially anti-consumer practices of the student loan servicing industry. More than 30,000 people responded, leading the Bureau, along with the Departments of Education and Treasury, to release a framework they hope will curb these questionable practices, promote borrower success, and minimize defaults. [More]
During the Great Recession, the growing industry of for-profit colleges promised millions of Americans a path to a higher education. But the high tuitions charged by many schools sent U.S. student loan debt soaring to more than $1.2 trillion. A new report claims that while for-profit schools charged top-dollar, many students were getting a cut-rate education, making it difficult to obtain jobs that will allow them to pay down this debt.
Processing transactions for drug traffickers is a big no-no, which is why Bank of America has agreed to pay $16.6 million to resolve federal allegations that it was involved in moving money around for ten traffickers over the course of four years.
The next wave of the credit crisis — the skyrocketing defaults on credit cards — is coming in and odd alliances are being formed. The Consumer Federation of America, along with the Financial Services Roundtable ( a self-described “major player on Capitol Hill and with the regulators” which represents the securities, investment, insurance and banking industries) has requested a “special program that would allow as much as 40 percent of credit card debt to be forgiven for consumers who don’t qualify for existing repayment plans.”