The FTC made the announcement below that seems to open the door for students with federal student loans to explore the possibility of applying for a Borrower Defense Loan Discharge. The Federal Trade Commission put 70 for-profit higher education institutions on notice that the agency is cracking down on any false promises they make about … Read more
[The opinions expressed in this guest post are those of the author. They do not purport to reflect the opinions or views of anyone else. If you would like to submit a guest post as well, click here.] About six months ago, I received a letter from the Social Security Administration informing me that it … Read more
[The opinions expressed in this guest post are those of the author. They do not purport to reflect the opinions or views of anyone else. If you would like to submit a guest post as well, click here.] For those who don’t feel like Daniel Rosen (Credit Repair Cloud) has done anything wrong and is … Read more
The Governor of California has just approved AB 1405 regarding debt settlement practices. Considering the number of debt settlement companies located in especially Southern California, this should create some new risks and liabilities for them. The new law targets not only the companies that sell and perform settlements but also the payment processors as well. … Read more
Question: Dear Steve, I’m 70 years old with almost $250k in federal student loans. I’ve been on IBR and have a $0 payment so far and am on SS. When my IBR tenure is completed (25 years), will the amount that has been “forgiven” be considered Capital Gains, and thus will I have to pay … Read more
Question: Dear Steve, Is the Litigation Practice Group for real? They have me in a debt verification program. This company tried to dispute my debt with discover. And the creditor came back saying the debt was valid. So I’m paying them $385 a month. That will be $9,200 for two years. I think the company … Read more
Question: Dear Steve, A failed business deal caused me to lose my American Express card, and in return, my 20-year-old personal account that I never missed a payment on or was never late was canceled as well. I want to pay off the defaulted balance in return for my personal card being returned. However, I’m … Read more
Perhaps the most inane car insurance commercial ever aired is one by Liberty Mutual: “Only pay for what you need.” Apparently, Liberty Mutual wants auto drivers to believe that it is the only insurance company that allows customers to buy car insurance tailored to their needs. But doesn’t every insurer do that? Nevertheless, the slogan … Read more
Question: Dear Steve, Should I file for bankruptcy? I’m making 60k a year and have about 35k in debt, in which I’ve been making minimum payments for the last 14 months. It feels like I’m getting nowhere. This debt seems like it would never clear. Please advise. Bee Thank you Answer: Dear Bee, The honest … Read more
Question: Dear Steve, I took a federal student loan for grad school in 1975. My Social Security now is garnisheed. Since 1993 loan collection has taken $35,000 from me, and not one cent has been applied to the loan amount only to interest. Is it legal not to put payments on to loan principal? Do … Read more
Question: Dear Steve, My question is about credit counseling courses. What are the chances this bill will pass and credit counseling done away with? Don Answer: Dear Don, I believe you are referring to a proposed bankruptcy law that would adjust the current bankruptcy law and do away with the requirement for bankruptcy credit counseling. … Read more
I’ve seen a lot of unfortunate situations in the debt relief space. I’ve written about many, but the problem between the Plaintiffs and Defendants and the mutual attorneys in one particular situation seems to be spiraling to a new level I’ve not seen before. No End in Sight Not long ago I wrote Student Loan … Read more
Defendants posed as police, attorneys to threaten consumers over fake debts An Atlanta-based debt collection company and its owners will be permanently banned from the debt collection industry under the terms of a settlement with the Federal Trade Commission. In its complaint against Critical Resolution Mediation, LLC, along with Brian Charles McKenzie and Tracy Dottrice … Read more
If you get a call that sounds similar to the message below. It is a scam. Hang up. “Hello, this is Mary Fletcher, state number agent, FF694. And this is a notification call from the department of financial relief services. And the purpose of this call is to inform all us citizens in our state … Read more
Question: Dear Steve, I recently signed up with Coast Processing, now LPG Litigation Practice Group. So far they have taken 3 payments of $254.06. I am about $12,000 in credit card debt and 4 months with no payments to the credit cards. They say with the program after 36 months my credit is repaired. That … Read more