"I'm trying to work something out with my landlord," McDowell said. "I know I owe the money. I know I went to school. I get it, but the entire refund? Even if they'd taken some of it, I could have used the rest to pay my bills. I'm a single parent. This just messed me up a lot." … [Read more...] about Staffing shortage at Education Department’s loan default units frustrates struggling borrowers
Debt management and collections system u s department of education
The college debt crisis has its roots in the 1980s, when institutions began jacking up tuition and fees to compensate for cuts in federal and state aid. Changes in the early 1990s made it easier for students to take out loans, and the push to boost college access increased the demand. Things worsened after the Great Recession struck in 2008, when states made deeper cuts. To compensate for this disinvestment in public higher education and to goose their rankings, public colleges — particularly flagship state universities — have been shifting their admissions and aid policies to try to attract more affluent out-of-state students. Even though these students pay higher tuition rates, they’re more likely to enroll if the public college offers them some non-need-based “merit” aid. That, in turn, has left fewer institutional dollars and fewer slots for low-income in-state students, prompting more of them to consider small private colleges, which have often been … [Read more...] about The college debt crisis is even worse than you think
29 “Service Providers,” include any person who “provides a material service to a covered person in connection with the offering or provision by such covered person of a consumer financial product or service, including a person that -- (i) participates in designing, operating, or maintaining the consumer financial product or service; or (ii) processes transactionsrelating to the consumer financial product or service (other than unknowingly or incidentally transmitting or processing financial data in a manner that such data is undifferentiated from other types of data of the same form as the person transmits or processes).” Sec. 1002(26). Regarding examinations or requiring of reports by service providers, Sec. 1024(e) and 1025(d), state that the Bureau shall coordinate with the appropriate prudential regulator as applicable. Thus, under Title X, service providers are to be subject to the authority of the Bureau, “to the same extent as if such service … [Read more...] about Are Compliance Management Systems the New Battlefront for the CFPB and Prudential Regulators?
He looked deeper into this head-scratcher. The only evidence provided in discovery was a spreadsheet with little more than his client’s name and some dollar figures. And he found that no judge had given so much as a side glance at the debt buyer’s lawsuit. A clerk simply processed the creditor’s claim based on a document stating little more than this person owes us this much, and the fact that she was served with the suit, then entering judgment after it went unchallenged. (Benshoof’s client had never heard of the company pursuing her and considered the various contacts junk mail or spam.) … [Read more...] about Debt-buying industry and lax court review are burying defendants in defaults
Pursuant to a 1975 DOL regulation, in order to be held to ERISA's fiduciary standards with respect to investment advice for a fee, one must (1) render advice to an employee benefit plan as to the value of securities or other property, or make recommendations as to the advisability of investing in, purchasing or selling securities or other property (2) on a regular basis (3) pursuant to a mutual agreement, arrangement or understanding, with the plan or a plan fiduciary that (4) the advice will serve as a primary basis for investment decisions with respect to plan assets, and that (5) the advice will be individualized based on the particular needs of the plan or IRA. … [Read more...] about U.S. Department of Labor Proposes New Fiduciary Standard