Nearly four years after tax refund anticipation loans were all but removed from tax preparation offices, similar costly financial products continue to be offered to many low-income consumers in need of a cash infusion before their tax refund actually hits the bank. This appears to be the case for a loan company accused of providing thousands of refund anticipation-like loans with hidden fees to people living in and around the Navajo Nation. [More]
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When Education Dept. Said Your Student Loan Would Be Forgiven, It May Not Have Meant It
By 3.31.17 — Updated: 5.10.17
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]
Bank Of America Ordered To Pay $46M Over Improper Foreclosure
By 3.29.17 — Updated: 5.10.17
Bank of America must pay $46 million for improperly foreclosing on a California couple’s home in 2010. [More]
Online Lender Claiming Tribal Affiliation Must Refund, Cancel $11.6M In Payday Loans
By 8.18.16
For years, online lenders have claimed affiliations with tribal groups in order to skirt state laws related to short-term, high-interest loans. Today, the state of Minnesota came to a settlement over a years-long, so-called “rent-a-tribe” loan scheme with CashCall, ordering the lender to pay $11.6 million in relief to borrowers. [More]
West Virginia Woman Sues Wells Fargo Over Alleged Home Loan Modification Misrepresentations
By 2.1.16
When you’re going through the often-tedious process of refinancing your mortgage, getting some bad information can only serve to make things worse. That’s why a West Virginia woman is suing Wells Fargo, alleging that the bank told her to stop making loan payments then put her into collections and foreclosure.
[More]
GM's Prez Begs Customers To Plead On GM's Behalf
By 11.18.08
Consumerist reader Darkrose writes, “I just got this in my e-mail. Thought you guys might be interested in it.” In the email, GM’s president Troy Clarke is in high PR mode, pointing out the grave consequences and emphasizing that GM wants not “a bailout but rather a loan that will be repaid.” We thought other readers who aren’t GM customers would find it interesting.
Collection Agencies Sending Out 1099-C Forms For Zombie Debts?
By 2.8.08
It seems that some bottom-feeding debt collection companies—the ones who buy old debts that are frequently beyond the point where you can be sued for collection (what the FTC calls “time-barred debts”)—purchase old debts, mark them up with incredibly high penalties and fees, then “forgive” them and write them off as tax losses and send the debtors 1099-C forms—which means you have to pay taxes on the forgiven amount. If this happens to you, here are a few things you should consider first.
