Last May, an investigation involving federal regulators and prosecutors from all 50 states led to four national cancer charities being charged with swindling consumers out of $187 million in charitable donations. Today, two of those bogus charities — responsible for $75 million in bilked donations — have agreed to close up shop and provide refunds to donors.
In recent years, countless private student loan borrowers have found themselves placed in automatic default – even if they were up-to-date on payments – when their co-signer died or filed for bankruptcy. Federal regulators now appear poised to rein in this often devastating practice, warning student loan lenders and servicers that they could soon face enforcement action if they continue the practice. [More]
With thousands of former Corinthian Colleges students waiting to find out if their federal student loan debts will be discharged because the now-defunct for-profit college allegedly deceived them with false promises related to their future careers, the Department of Education announced the creation of a special enforcement unit with the goal of being able to respond quickly to allegations that colleges are violating the law. [More]
Hundreds of thousands of residents in five states and one U.S. territory will receive a two-year reprieve from having to use an additional form of identification when going through airport security, as the Department of Homeland Security extended the deadline for state drivers licenses to meet REAL ID standards. [More]
Ten years ago, Congress passed the REAL ID Act, which set minimum security standards for state-issued driver’s licenses and photo IDs. While the rules haven’t exactly been enforced to the “T” by the Dept. of Homeland Security, that’s poised to change, leaving millions of people in nine states in need of a second form of ID to pass through airport security. [More]
Some airlines aren’t living up to their obligation to compensate passengers for damage to their luggage, recent inspections by the Department of Transportation found. Now, the agency is warning carriers that if their policies and trainings don’t fall in line with federal regulations by Jan. 9, they could face fines and other enforcement action. [More]
The Consumer Financial Protection Bureau ordered Citibank and one of its subsidiaries to pay $700 million in relief to more than 8.8 million consumers for engaging in a string of illegal credit card practices, including deceptively marketing and billing for debt protection and credit monitoring services, and misrepresenting fees related to debt collection actions. [More]
Federal regulators, state officials and prosecutors and law enforcement officers from all 50 states and the District of Columbia partnered today to charge four cancer charities and their operators for running a scheme that swindle consumers out of $187 million in charitable donations. Two of the charities have agreed to settle the charges and dissolve their businesses, while two other plan to fight the charges in court. [More]
Back in September ITT Educational Services – the operator of for-profit college chain ITT Technical Institute – revealed it was facing increased scrutiny by several government agencies. That scrutiny turned to action this week as the Securities and Exchange Commission filed fraud charges against current and former executives with the company for their part in concealing problems with company-run student loan programs. [More]
The Government Accountability Office (GAO) has just completed a survey of wireless customers and a review of the “tens of thousands” of complaints made to the FCC every year, and they’ve reached a verdict: the FCC needs to step up and provide a better way for consumers to get help.