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CFPB Wins Final Judgment Against Morgan Drexen for Illegal Debt-Relief Scheme

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At the request of the Consumer Financial Protection Bureau, a federal district court entered a final judgment this week against debt relief company Morgan Drexen, Inc., resolving a lawsuit filed by the CFPB in August 2013. The Bureau’s lawsuit against Morgan Drexen alleged that the company charged illegal upfront fees and deceived consumers. The court found that the company violated ... Read More »

    How a For-Profit College Targeted the Homeless and Kids With Low Self-Esteem

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    by Annie Waldman ProPublica Perhaps you remember Corinthian Colleges. It was the country’s second largest chain of for-profit colleges, before it collapsed into bankruptcy last year amid evidence of phony marketing and predatory loans. The shenanigans brought investigations from more than 20 state attorneys general and the federal Consumer Financial Protection Bureau. But the actual emails and testimony underlying the ... Read More »

      I’m Now Thinking Debt Settlement Attorney Aissac Aiono Must be Either a Liar or an Idiot

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      Frankly I’m just ashamed and disgusted by revelations in recent court documents filed by the Consumer Financial Protection Bureau (CFPB) in the case against Morgan Drexen which then sucked in attorneys continuing the illegal advance fee debt settlement enterprise. One of those participants actually threatened to sue me when I first wrote about the activity. See this article. More on ... Read More »

        Kerthump is the Sound the Morgan Drexen Judgment Made

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        Yesterday the court issued a final judgment against the once soaring and now defunct debt settlement company Morgan Drexen. I’ll let the court order do the talking. “IT IS ORDERED: 1. Restitution: Judgment for equitable monetary relief is entered in favor of the CFPB and against Morgan Drexen in the amount of $132,882,488 as restitution for the unlawful up-front fees ... Read More »

          Student Loan Processing.US Shut Down by CFPB

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          Today the Consumer Financial Protection Bureau (CFPB) requested that a federal district court enter a final judgment and order that would shut down a student debt relief scheme that charged borrowers millions of dollars in illegal upfront fees for federal student loan services. If approved by the court, the proposed judgment would ban the company, Student Loan Processing.US, and its ... Read More »

            Department of Education Serious About Discharging Fraudulent Student Loans

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            The Department of Education is getting very serious about a process that would allow those with federal student loans to apply for a full discharge of their loans if the schools deceived them. It’s an approach and subject I’ve talked about here. Recently the U.S. Department of Education released a proposal that would establish borrower-friendly processes for seeking and obtaining ... Read More »

              The Borrower Defense Pothole That Will Swallow Many Trying to Forgive Student Loans

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              The Federal Trade Commission recently put out advice advising student not to pay for help in submitting a claim to have all of their federal student loans forgiven due to fraud. This fraud issue is one where many people could actually have all of their federal student loans forgiven. See my recent article on this here, here, here and here. ... Read More »

                Debt Relief Scammer Denny Lake Folds to the FTC

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                The following legal action by a debt relief industry entity, should serve as a good example of the tie that binds both affiliates and marketers and the company who is providing the service. Denny Lake, the final individual defendant in a mortgage modification scam aimed at financially strapped homeowners, will be banned from selling debt relief and mortgage-related products and ... Read More »

                  I Just Received a Mail Piece Regarding Student Loan Relief…Is It Legitimate?

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                  A hat tip to the Association for Student Loan Relief for sending in this guest post. Introduction The student loan burden currently facing our country is much larger than most people realize. As of July 1, 2015 there were approximately 37.1 million Americans with outstanding student loans with an aggregate face value of around $1.1 trillion. Of those it is ... Read More »

                    Nasty Letter Fools People With Student Loan Debt

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                    A very kind reader sent me the following letter they received and they wanted to know if the government was really going after them. After all, they didn’t have any past due student loan debt. The mailer below raises a number of issues. Probably the most important is the appearance can easily confuse people this is official communications from the ... Read More »

                      CT Goes After Bobby Blackmon and Financial Help Services

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                      It appears the ever vigilant and on-the-ball Connecticut Department of Banking was searching for Bobby Blackmon and Financial Help Services, Inc. The State says, “on November 23, 2015, the Order and Notice was sent by certified mail, return receipt requested, to Respondent (Certified Mail Nos. 70143490000235259701 and 70143490000235259718), and to its registered agents Business Filings Incorp (Certified Mail No. 70143490000235259725), ... Read More »

                        What Caused the Student Loan Debt Problem?

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                        By Mark Tetzlaff, JD, MBA, MAR Everyone agrees that student loan debt is spiraling out of control. Analysts cite many reasons, but offer few remedies. In my view, the reason for no offers of plausible solutions is that experts have failed to pinpoint the primary cause—Congress passing the Higher Education Amendments of 1992 (HEA-92) and its resultant effects that make ... Read More »

                          Even More Sophisticated Students Claim They’ve Been Scammed by Colleges

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                          I’ve been drolling on about schools misleading students or at least not telling them the full story about the value of their degree before enrolling them and taking their money. And I still say students with federal student loans who have been misled by their schools to enroll, have a way to deal with discharging their loans. Read “Door Prepares ... Read More »

                            New Car Prices and Payments Set Records

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                            Experian Automotive announced that the average amount financed and the average monthly payment for a new vehicle continued to climb, breaking the previous records on file. According to its latest State of the Automotive Finance Market report, the average amount financed for a new vehicle in Q4 2015 was $29,551, up $1,170 from Q4 last year, and the average monthly ... Read More »

                              Monopoly Ditching Fake Money for Fake Credit Cards

                              Bob Sullivan just published a great piece on the elimination of paper money from the game Monopoly. But is that really the worst thing to happen? Sullivan says, “In other words, there is little evidence that Monopoly, the game, was doing a bang-up job of teaching kids how to handle money.” He’s right. I can’t imagine the number of hours ... Read More »

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