Articles Tagged with Miami consumer protection lawyer

College debt is weighing heavily on tens of thousands of elderly Americans, pushing them into poverty. That’s according to a new report by the Government Accountability Office, which revealed more than 110,000 people over the age of 65 had their Social Security checks garnished in 2015 in order to continue paying off student loans on which they had defaulted. coinerolls

The report further indicates more than 70,000 Americans over the age of 50 are currently living under the poverty line specifically because their Social Security payments are being slashed in order to cover the amount they still owe on student loans.

These figures contrast the widely-held notion that student loan debt is largely a problem for millennials. But what this report, which was generated at the request of Senators Claire McCaskill (D-Mo.) and Elizabeth Warren (D-Mass.), reveals this is an inter-generational problem. Further, it’s not one that is simply going to “sort itself out.” That’s because of those tens of thousands of borrowers whose Social Security checks are being cut to pay down this debt, they aren’t actually paying it down. Nearly 70 percent of those borrowers are only paying on the fees and interest. That means the overall amount of their debt isn’t decreasing, which means unless they start generating more money with another income source, they aren’t ever going to stop making payments. And guess who profits from all this? The federal government.  Continue reading

In the wake of Wells Fargo’s most recent scandal, in which the financial firm was caught red-handed creating two million fraudulent accounts by customers, the bank promised it would clean up its act. It promised to change its practices and do its best to protect its customers. But as a New York Times‘ investigation shows, the bank has been – and still is – actively trying to kill off lawsuits stemming from its fraud by forcing customers affected to settle their claims via arbitration, rather than be allowed to have their day in court. So much for accountability. credit cards

Highlighting these actions are critical now that we have leaders intent on gutting the Consumer Financial Protection Bureau and its regulations – proposed and existing.

We should start by explaining first what forced arbitration is. It is part of a binding contract that bank consumers “agree” to by virtue of having an account, and it requires that all disputes arising with the firm must be handled with a private arbitrator, rather than in a court of law with a judge or jury. There is very good reason banks (and many other businesses) push so hard for these provisions, and its that the outcomes are most often favorable to defendants. Even where decisions are made in favor of consumers, they tend to be for far less than what they might have received in litigation. What’s more, the process is not transparent. It’s all confidential, so it does nothing to help others similarly situated. It effectively quashes the ability of wronged consumers to engage in a class action, which is sometimes the only way to truly hold these large firms accountable.  Continue reading

Loan servicing is the process by which the borrower – either of a home loan or student loan – entrusts the daily management of that loan repayment to a third party. That third party is supposed to handle the loans on behalf of the owner, directing payments through the system and deciding how best to handle defaults. money

It is not all that complicated, loan servicing. And yet, it has become an industry rife with systemic problems that continue today, even 10 years after the start of the national foreclosure crisis. It seems many servicers are unable to rely on a business model in which they can profit and also not swindle their customers. Perhaps its’ time we start weighing some alternatives.

Consider that just recently, Ocwen, one of the country’s largest servicers, was just slapped with sanctions via the National Mortgage Settlement. These were terms the company had agreed to back in 2013, after it was accused of breaking consumer financial protection laws at nearly every step in the mortgage servicing process.  Continue reading