A new report from Pew describes how debt collection lawsuits have transformed state courts. Among the report's findings: Fewer people are using the courts for civil cases. Debt claims grew to dominate state civil court dockets in recent decades. People sued for debts rarely have legal representation, but those who do tend to have better […]
Author Archives: Allison Zieve
Yesterday, on behalf of a class of student borrowers, the National Consumer Law Center and Student Defense, with the support of the Student Borrower Protection Center, filed a class action lawsuit against the Department of Education and Secretary Betsy DeVos in federal district court in DC. The suit alleges that the Department is illegally garnishing […]
We posted two weeks ago that the Federal Trade Commission had sent warning letters to more than 25 companies to stop making unsubstantiated claims that their products could prevent or treat COVID-19 Last Thursday, the FTC sent 21 additional letters warning marketers throughout the United States to stop making unsubstantiated claims that their products and […]
The National Consumer Law Center has published a list of recommendations for actions that states can take to reduce the economic impact of COVID-19 on consumers and their families. The document summarizes NCLC's more detailed recommendations on auto finance, credit reporting, criminal justice debt, debt collection, medical debt, mortgage relief, preventing garnishment of stimulus checks, […]
The Federal Trade commission has sent warning letters to more than 25 companies to stop making unsubstantiated claims that their products could prevent or treat COVID-19. Fox Business reports here. The FTC's latest press release on the problem is here.
This week, the Treasury Department will begin to send out the $1,200 CARES Act payments that Congress approved in response to the coronavirus crisis. The money will be wired to eligible recipients who previously authorized the IRS to post their refunds through direct deposit. The American Prospect reports, though that "Congress did not exempt CARES […]
The Washington Post reports: "The U.S. Education Department is promising to process student loan forgiveness claims for nearly 170,000 borrowers within 18 months as part of a proposed settlement announced Friday in a federal lawsuit. The suit alleges that Education Secretary Betsy DeVos illegally stalled a program known as borrower defense to repayment, which promises […]
As many people are struggling to pay their mortgage during the coronavirus crisis, columnist Michelle Singletary offers advice on resources for people experiencing financial hardship because of the pandemic. Her column is here.
U.S. Public Interest Research Group's Ed Mierzwinski and Sabrina Clevenger write that the effects of coronavirus "will send credit reports in a downward spiral" and explain how Congress can help. Their op-ed in USA Today is here.
Massachusetts Attorney General Maura Healey on Friday announced that her office has filed an emergency regulation that prohibits creditors from engaging in methods of debt collection that can require people to leave their homes during the COVID-19 pandemic. Healey said the regulation, 940 CMR 35.00, is designed to protect consumers from unfair and deceptive debt […]