student loan debt, Student Loans

ITT Tech Student Loan Lender Must Pay $330 Million in Debt Relief to Former Students

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An agreement has been reached between the attorneys general from 43 states and the now-closed ITT Technical Institute (ITT Tech). This agreement was part of a lawsuit brought by former ITT Tech students, requesting approximately $330 million in student loan forgiveness for 43,000 loans.

This lawsuit was a joint legal effort brought on by the Consumer Financial Protection Bureau (CFPB) and 43 different states. The settlement was made with PEAKS Trust, a private lending institution that is run by ITT and is also affiliated with several Deutsche Bank entities.

Debt Collection

How to Avoid Resetting the Clock on Old Debt

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Once a debt is past a certain age, collecting on that debt through legal channels is barred under Florida’s statute of limitation laws. However, if the person owing the debt is not careful, the debt can be reset, making the amount owed legally collectible once more. Knowing what to do to prevent that from happening is important for this reason.

Understanding the Statute of Limitations

Every state has a set of laws that governs how long a person or entity has to bring a legal claim on any given issue, including debt collection. If a claim is brought after that period has passed, the claim will likely be barred. When it comes to debt collection, this timeline is five years from the date the debt began for written contracts, including personal loans. If the debt is one with a revolving account, including credit card debt, the statute of limitations is four years.

student loan debt, Student Loans

Half a Million Borrowers Petition President Trump to Have Their Student Loan Debt Cancelled

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More than half a million student loan borrowers have signed a petition posted on Change.org, asking that President Trump sign an executive order that would effectively cancel all federally held student loans. This request makes up around 85 percent of all outstanding student loan debt.

The creator of the petition and founder of student loan advocacy group, StudentLoanJustice.org, Alan Collinge, stated he created this petition as he believes this would be the least expensive way, as well as the most effective way, to bring in trillions of dollars into the national economy. During a time of global pandemic, where the economy has taken a hit, he believes this would be the best way to give the economy a boost.

Coronavirus, COVID-19, Foreclosure Defense, Foreclosures

Covid-19 Mortgage Bailouts Decline, New Foreclosure Crisis Looming

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Homeowners are struggling to keep up with their mortgage payments as the coronavirus (COVID-19) crisis continues. The mortgage bailouts offered by the federal government and private sector during the crisis have helped temporarily, but as the number of bailouts begin to decline, many homeowners are finding themselves facing the possibility of impending foreclosure.

According to figures from Black Knight, a mortgage technology and data firm, approximately 3.7 million borrowers are still receiving assistance through federal government and private sector mortgage forbearance programs.  This figure represents nearly seven percent of all active mortgages. Forbearance plans allow borrowers to temporarily delay monthly payments for anywhere between three months to a year.

Debt Collection, Debt Relief

How to Work with Debt Collectors When You Are Not Able to Pay

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Dealing with debt collectors is stressful, especially when the person owing the debt simply does not have the financial resources to pay. It can be easy to fall behind on bills, and before too long, the consumer will find himself or herself juggling countless collection calls. These calls are not always pleasant. After all, the debt collectors have one job to do and that job is to receive payment on the debt. What is the best way to deal with debt collectors when an individual is not able to come up with the payment?

Stay Calm and Attempt to Work with the Collector

Debt collectors have a reputation of being aggressive when performing their jobs. However, it is important to stay as calm as possible when communicating with a debt collector. If a consumer agrees that he or she owes the debt and does not have the resources to do so, it may still be beneficial to at least attempt to work with the debt collector on paying on the debt. If the person does not have the money but still wants to pay, the collector may mark the consumer down as “refused to pay.” However, do not fear this label. It is essentially meaningless in the collection process. It does not make the collection case against consumer any worse or any better.

student loan debt, Student Loans

Bankruptcy Court Discharges $200,000 in Private Student Loan Debt for Colorado Couple

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A major victory was scored for student loan borrowers after a U.S. Court of Appeals for the Tenth Circuit issued a ruling stating that a Colorado couple’s private student loan debt could be discharged in their personal bankruptcy case. The ruling allowed $200,000 of private student loan debt to be wiped out, breaking the long-standing stigma that student loan debt, particularly private student loan debt, is near impossible to discharge in a bankruptcy case.

The Colorado couple had taken out $200,000 in private student loans from Navient, one of the nation’s largest student loan issuers. The ruling comes after a similar bankruptcy case, where the borrower also had their student loan debt discharged. In that case, the loan servicer appealed the ruling.

Foreclosure Defense, Foreclosures

Tax Implications Homeowners Facing Foreclosure Encounter from the CARES Act

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The coronavirus (COVID-19) pandemic has thrown countless Americans into a financial tailspin. Many consumers were pushed out of jobs and put into the position where they are not able to pay the most basic of living expenses, including mortgage payments, to stay in their homes. As the pandemic continues, these homeowners are now put in a terrifying position, facing the real possibility that they could lose their homes.

At the start of the pandemic, lawmakers worked hard to try to keep Americans from facing this possibility by passing the CARES Act. One major part of this stimulus package was the ability for borrowers who carried federally backed mortgages to request a forbearance for up to 180 days on their loan obligations. The hope was this measure would give distressed homeowners breathing room and a chance to stay in their homes during this time of financial difficulty. If needed, borrowers could then request an additional 180 days of relief.

Debt Collection

Facing Debt Collection? Know Your Rights.

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When someone is facing debt collection, it is important that person knows his or her rights.  The Fair Debt Collection Practices Act (FDCPA) is a federal law that protects consumers against unfair collection practices, including:

  • Calling you repeatedly to annoy or harass you;
  • Trying to collect more than you owe;
  • Failing to send a written notice of the debt;
  • Threatening violence, using profanity or offensive language;
  • Threatening dire consequences (i.e. – lawsuits, criminal prosecution, wage garnishment, jail time, permanently ruining your credit);
  • Calling you before 8 a.m. or after 9 p.m.;
  • Revealing debt to third parties (i.e. – family, neighbors, friends, co-workers, etc.);
  • Contacting you at your work, after you have requested them to stop;
  • Failing to verify disputed debts;
  • Ignoring cease communication requests.