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Payday Loan Scam Debt Collectors – Caught

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At the request of the Federal Trade Commission and the Illinois Attorney General, a federal court has temporarily halted a Chicago-area operation that allegedly threatened and intimidated consumers to collect phantom payday loan “debts” they did not owe, or did not owe to the defendants. The defendants also allegedly illegally provided portfolios of fake debt to other debt collectors – ... Read More »

Student Aid Institute – The Latest in the CFPB Crosshairs

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The Consumer Financial Protection Bureau (CFPB) yesterday took action to halt a student loan debt relief scam that illegally tricked borrowers into paying fees for federal loan benefits and misrepresented to consumers that it was affiliated with the Department of Education. The CFPB is ordering the student debt relief company, Student Aid Institute, Inc., and its chief executive officer, Steven ... Read More »

Certified Debt Reduction Notice – Utter BS

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So this Certified Reduction Notice arrived in the mailbox of one of my amazing readers. I have no clue what make this notice “certified.” Certifiable is more like it. The sales letter, that’s what it is, arrived in a plain envelope with little identifying information The letter inside doesn’t even say who the company is behind this. The claims made ... Read More »

Corinthian College Students to Get Student Loan Debt Forgiven

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The U.S. Department of Education announced today that students who were defrauded at 91 former Corinthian Colleges Inc. (Corinthian) campuses nationwide have a clear path to loan forgiveness under evidence uncovered by the Department while working with multiple state attorneys general. These campuses represent the largest group of borrowers eligible for loan relief so far from the ongoing investigation into ... Read More »

Will Consolidating My Student Loans Stop My Wage Garnishment?

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Question: Dear Steve, Recently contacted by consolidation group about consolidating my student loans I also have a wage garnishment on my recent paystub’s from my college institution I was wondering if consolidation would remove that garnishment from my current paystub’s the person I spoke to you about the consolidation told me that that would not remove it but your website ... Read More »

Aissac Aiono and Seila Law Deny CFPB Claim They Should Be Held Responsible

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In the ongoing saga that is the Morgan Drexen mess, a new attorney was recently dragged into the quagmire. Aissac Aiono, operating as Seila Law was alleged to have taken over debt settlement clients and efforts for the chain that began with Morgan Drexen, passed through Howard Law, and now is purported to have landed on Seila Law. You can ... Read More »

What Do You Think About Wealth Network Solutions Debt Relief Business Opportunity?

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A reader sent me an email and wanted to know what I thought about the recent press release and debt relief business opportunity that a company named Wealth Network Solutions had sent out. The press release seems typical. The company, Wealth Network Solutions, says they have a new web site and help people to deal with their debt. The release ... Read More »

Is the Mark Tetzlaff Case Over at the Supreme Court? Maybe Not.

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By Gordon Wayne Watts This is a follow-up to this story that Steve wrote about Mark Tetzlaff and his student loan Supreme Court efforts. We recall Mark Tetzlaff, a law student with a staggering $260,000 in college loan debt, is a 56-year old, Waukesha, Wisconsin resident, who lives with his eighty-five-year-old mother, both of whom subsist solely the income from ... Read More »

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 »

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