CFPB Student Loan Ombudsman Resigns, Blasts Mick Mulvaney
The student loan ombudsman for the Consumer Financial Protection Bureau, Seth Frotman, resigned on August 27, 2018. On his way out, he blasted CFPB Acting Director Mick Mulvaney, writing that the director has abandoned the CFPB’s mission to protect consumers. Congress created the office of the student loan ombudsman at the CFPB to protect student […]
DC Region Leads Nation in Complaints About Debt Collection
The Washington, D.C. region again outpaces the nation in complaints about debt collection in 2018, according to the latest Complaint Snapshot report from the Consumer Financial Protection Bureau, or CFPB. Washington, D.C. ranks first in the nation in debt collection complaints per capita, while Maryland ranks third and Virginia ranks eighth. The D.C. area has […]
Feds Sue the Nation’s Largest Debt Settlement Company
On November 8, 2017, the Consumer Financial Protection Bureau (CFPB) sued the nation’s largest debt settlement company, Freedom Debt Relief, part of the Freedom Financial Network. According to the CFPB, Freedom deceives consumers by charging them without without settling their debts as promised. Freedom instead expects its customers negotiate their own settlements, misleads them about […]
Student Loan Debt in DC, Virginia, and Maryland
In October 2017 the Consumer Financial Protection Bureau (CFPB) published a 50 State Snapshot of Student Debt. Since its formation, the CFPB has handled tens of thousands of complaints related to student loan lenders, servicers, and debt collectors. Student loan debt in DC, Virginia, and Maryland is truly enormous. Total outstanding student loan debt in DC is $6.76 […]
D.C. Leads U.S. in Complaints about Debt Settlement Companies
According to the Consumer Financial Protection Bureau, Washington, D.C. leads the nation in complaints about debt settlement companies. In the CFPB’s latest monthly complaint report, the District of Columbia registered 893 complaints per 100k population. By contrast, Maryland had 521 complaints per 100k residents, and Virginia had just 385. As I have written previously, debt […]
Student Loan Forgiveness Could Narrow the Racial Wealth Gap
The racial wage gap is wider today than in it was in 1979. And according to this recent Washington Post article, student debt is exacerbating the gap. Student loans make it more difficult for to save money and accumulate assets. Targeted student loan forgiveness could narrow the racial wealth gap. Education levels directly influence both economic opportunity and […]
Washington DC Area Tops List for CFPB Complaints Nationwide
As of March 1, 2016, the Consumer Financial Protection Bureau (CFPB) handled approximately 834,400 complaints, including approximately 22,800 complaints. The Washington, DC area has three of the top seven jurisdictions for CFPB complaints per capita. By a wide margin, Washington, D.C. leads the nation in CFPB complaints per capita with 713 complaints per 100,000 residents. […]
Restrict Debt Collectors from Calling Cell Phones
In November 2013, the CFPB issued an Advance Notice of Proposed Rulemaking soliciting public comments on an array of issues relating to the debt collection practices of third-party debt collectors, debt buyers, and creditors. The CFPB should restrict debt collectors from calling cell phones. In a recent article, Todd Zywicki, law professor at George Mason […]
Inside the Dark World of Consumer Debt Collection
In August 2014, the New York Times published a fascinating article by Jake Halpern entitled Paper Boys: Inside the Dark, Lucrative World of Consumer Debt Collection. The article follows the intertwining tales of Aaron Siegel and Brandon Wilson, two men who invest in “distressed consumer debt.” These guys buy up the right to collect unpaid credit-card […]