collections

Payday Lender Ordered to Pay $10 Million Over Collection Practices

Posted on 07/14/2014 by |AARP Blog Author | Comments

Bulletin Today | Money & SavingsAce Cash Express, one of the nation’s largest payday lenders, has agreed to pay a $10 million settlement over its collection practices. The Consumer Financial Protection Bureau said that Ace, based in Irving, Tex., must refund $5 million to customers who fell victim to such practices from March 2011 to September 2012; it must also pay a $5 million civil penalty. Payday loans are taken out by people who need quick cash between paychecks. Companies such as Ace Cash Express have been known …

Is Medical Debt Highly Unhealthy for Your Credit Score?

Posted on 05/21/2014 by |Senior Editor, Money Team | Comments

Bulletin Today | Money & SavingsAre consumers’ credit scores unfairly dinged by medical debt? The Consumer Financial Protection Bureau thinks so. The agency released a new report that says unpaid medical debt sent to collections – and appearing on credit reports – can overly penalize consumers. Credit scores, generated by information in credit reports, are three-digit numbers that try to predict a consumer’s likelihood of paying bills. The higher the number, the better. Businesses use scores to decide whether to extend credit and at what interest …

Debt Collectors Fined, Told to Back Off

Posted on 05/9/2014 by |Money and Work | Comments

Bulletin Today | Money & SavingsHere’s some good news for people hounded by relentless debt collectors and hauled into court. Two of the nation’s biggest debt collection companies have agreed to stop lawsuits against borrowers and drop collections on some $16 million in judgments. In a settlement with New York authorities, Portfolio Recovery Associates, based in Norfolk, Va., and Sherman Financial Group, based in New York, also agreed to pay fines to settle allegations that they violated state law by pursuing borrowers for debts that …

In Eviction Dispute, It’s David 1, Goliath 0

Posted on 08/23/2013 by |Legal Grounds | Comments

Bulletin TodayRafael Lee is 82, it’s true. But the New Yorker’s energy and attitude revealed itself when he hired a lawyer to protest a law firm’s attempt to evict him from his rent-controlled apartment – and won. Turns out that Lee (or his lawyer, James Fishman) may have known more about federal debt collection law than the landlord’s law firm, Kucker & Bruh, which, somewhat ironically, specializes in … debt collection. First-year law students (I teach ‘em) learn on their first …