Student Loan Collections Resume Today
Account Recovery
MAY 5, 2025
After a five-year hiatus, the Department of Education will resume involuntary collections on federal student loans today, impacting millions of borrowers already in default.
Employers Need Education on Student Loan Garnishments
Account Recovery
MARCH 14, 2024
While still a few months off on the horizon, the date on which individuals with unpaid student loans may start seeing their paychecks and bank accounts garnished is approaching.
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Outgoing Administration Publishes Blueprint to Prevent Student Loan Defaults
Account Recovery
JANUARY 20, 2025
On its way out the door, the Department of Education has published a memo outlining the steps that the new administration should take to prevent individuals from defaulting on their student loan payments and the importance of continuing the actions that have been taken by the outgoing administration.
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Daily Digest – March 14. Getting to Know Matt Jubenville of Midland Credit Management; Passive Debt Buyer Meets Definition of Debt Collector Under FDCPA, Indiana State Law, State Appeals Court Rules
Account Recovery
MARCH 14, 2024
Getting to Know Matt Jubenville of Midland Credit Management Passive Debt Buyer Meets Definition of Debt Collector Under FDCPA, Indiana State Law, State Appeals Court Rules Medical Debt Credit Reporting Bill Advances in Illinois Senate Employers Need Education on Student Loan Garnishments PRA Group Appoints Glenn Marino to Board of Directors WORTH (..)
Debtor Education Course After Filing for Bankruptcy
Sawin & Shea
JANUARY 11, 2024
Since 2005, a debtor education course from an approved provider is mandatory for anyone who files for bankruptcy. Debtor education classes provide customized guidance based on your unique circumstances. Since then, bankruptcy filers have been required to take both a bankruptcy credit counseling course and a debtor education course.
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Steps Involved in Recovering Unpaid Student Loans
Nexa Collect
JUNE 27, 2023
Wage Garnishment : In some cases, especially with federal student loans in the United States, the lender or collection agency can get an administrative garnishment order which allows them to take a certain percentage of the borrower’s wages directly from their employer.
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Impact of Collection Agency Letters on Debtors
Nexa Collect
JUNE 23, 2023
Ignoring the letters can have further consequences, such as lawsuits and garnishments. Educational Impact : The experience of dealing with a collection agency may educate the debtor about the importance of managing credit and debt responsibly. It can serve as a learning experience that impacts future financial decisions.
What is a Judgment?
Credit Corp
JUNE 3, 2020
Common methods include wage garnishment , property attachments and property liens. This is known as wage garnishment. The Consumer Credit Protection Act caps these types of garnishments. Nonwage garnishment. If you’re retired, unemployed or self-employed, your bank account may be garnished instead.
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98 FTC Takes Action Against Phantom Debt Collector That Collected Millions In Bogus Debt From Consumers
Collection Industry News
NOVEMBER 25, 2024
The company’s collectors call consumers out of the blue and threaten them with arrest, wage garnishment, and lawsuits if they don’t pay a supposed debt. The Federal Trade Commission works to promote competition and protect and educate consumers. The case will be decided by the court.
Stimulus Acts and Student Loans: What You Need to Know about CARES, HEROES, and HEALS
Credit Corp
JULY 30, 2020
Wage garnishments for defaulted student loans were also paused. It’s important to note that the CARES Act mandated all of these changes, but the Department of Education and others couldn’t roll them out overnight. Some borrowers saw continued garnishment of wages , automatic loan payments, or the taking of tax returns.
Need to Know About Debt Negotiation and Settlement?
Sawin & Shea
AUGUST 24, 2020
Bankruptcy can also stop or delay a home or mortgage foreclosure, stop collection actions, stop garnishments and lawsuits. While debt collectors can be persistent, the Fair Debt Collection Practices Act (FDCPA) was in place to stop collector harassment, and it’s good to stay educated about what debt collectors can and can’t do.
Congress Passes Relief for Student Loan Borrowers in CARES Act
Titan Consulting
JUNE 7, 2020
Benefits include the following: Suspension of Monthly Payments : The US Department of Education automatically suspended payments on outstanding federal student loans. Payment relief includes both direct and FFEL (Federal Family Education Loans) loans and lasts through September 30, 2020. About Titan Consulting Group.
8 Million Americans Are in Default With Their Student Debt
Collection Industry News
NOVEMBER 8, 2021
About the author: Sarah Sattelmeyer is the project director for education, opportunity, and mobility in the higher education initiative at New America. But additional, important vehicles for higher education-related reforms are moving forward beyond the headlines (and often behind the scenes). Dreamstime.
Why do you need to attend credit counseling before bankruptcy?
Roths Child Law
APRIL 10, 2023
For this reason, any person declaring bankruptcy (Chapter 7 or Chapter 13), must sign up for a pre-bankruptcy credit counseling and debt education program before their petition can be approved. While credit counseling happens before formally filing for bankruptcy, debtor education happens after filing but before your debts can be discharged.
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You’re in Debt: 9 Terms to Know
The Kaplan Group
OCTOBER 19, 2020
Instead, I suggest you do what you can to educate yourself about your options. Garnishment. Garnishment is when a creditor takes part of your paycheck or money from your bank account to collect money you owe on a judgment. Garnishments generally require a court order. FDCPA ( Fair Debt Collection Practices Act).
Best Practices for Call Baiting in Debt Collection
PDC Flow
FEBRUARY 27, 2025
Education: Educate your employees. Are you going to garnish my wages? In this case, how can a baiter cause your agents to violate the rules? Implementing Controls: Put in place the controls and corrective actions that can prevent a call baiting situation from happening within your agency. How will my credit be affected?
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What Is a Judgment?
Credit Corp
MAY 30, 2023
This is known as wage garnishment. The Consumer Credit Protection Act caps these types of garnishments. Nonwage garnishment. If you’re retired, unemployed, or self-employed, your bank account may be garnished instead. Veterans payments, social security, and disability benefits are not eligible for nonwage garnishment.
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Further Limits on Debt Collection For Medical Debt in New York
FFGN COLLECT NY
NOVEMBER 30, 2022
The new New York law signed last week bans wage garnishments on judgments resulting from medical debts and prohibits entering or enforcing liens on homes for medical bills. Although this is still allowed, we should expect further legislation in the state to further limit, or disallow, any recovery on consumer debt.
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Tenth Circuit Adopts “Reasonable Consumer” Standard to Determine Materiality Under FDCPA
Troutman Sanders
SEPTEMBER 19, 2022
the plaintiff defaulted on his student loan payment, and the account was sold to Educational Credit Management Corporation (ECMC), a federal student loan guarantee agency, which then contracted with Pioneer Credit Recovery, Inc. In Tavernaro v. Pioneer Credit Recovery, Inc. , Pioneer) to help collect the debt.
Best Practices for Resolving Medical Accounts
Credit Management Company
MAY 17, 2022
Effective financial communication and patient financial education starts before the medical procedure begins. Provide education about out-of-pocket obligations. The report was updated in 2020. In this post, we'll cover some of those best practices. Maintain Effective Communications. Contract with a Trustworthy Debt Collection Provider.
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A Recap of New York Debt Collection Laws Passed in 2022
FFGN COLLECT NY
JANUARY 6, 2023
Putting an end to the use of wage garnishments (income executions) in New York to collect medical judgments. Initially, the law first prohibited withholding transcripts for SUNY and CUNY students but expanded to include all higher education institutions. Decreasing the legal rate of interest on consumer claims from 9% to 2%.
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DEBT COLLECTION INDUSTRY DEEMS ITSELF ESSENTIAL TO “FINANCIAL HEALTH” OF CONSUMERS, FIGHTS COVID-19 SHUTDOWN
Collection Industry News
JULY 20, 2020
The Education Department is suspending collections on federal student loans and urging private collection agencies to stop pursuing borrowers. The educational motivations of public-minded debt collectors notwithstanding, consumer advocates aren’t convinced. The momentum has reached the federal government.
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Debt Collection of Medical Judgments in New York to Become Further Limited By S6522A
FFGN COLLECT NY
JUNE 24, 2022
If you are wondering if you will be affected as a medical provider, you can search the definition as it relates to hospitals organized by the Public Health Law and healthcare professionals authorized under Title 8 of the education law. Lien on Property.
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52 New Student Debt Regulations: REPAYE
National Service Bureau
DECEMBER 15, 2015
The United States Department of Education (ED) recently announced two additional regulations (designated REPAYE or Revised Pay As You Earn) which are intended to ease the burden of federal student loan repayment. The intent is to smooth the loan repayment process in order to get from a condition of default to regular repayment.
Troutman Pepper Weekly Consumer Financial Services COVID-19 Newsletter
Troutman Sanders
MARCH 22, 2021
Department of Education announced that about 72,000 student loan borrowers, who were defrauded by their schools, will receive student loan forgiveness that could total $1 billion. On March 17, Virginia Attorney General Mark Herring announced a new law preventing garnishment or seizure of economic support payments. On March 18, the U.S.
What is the Difference Between Secured and Unsecured Debt?
Sawin & Shea
JANUARY 25, 2022
These remedies can include garnishing your wages and bank accounts and seizing and selling your non-exempt personal property. If the unsecured debt is a federal student loan, the Department of Education can garnish up to 15% of your disposable income without filing a lawsuit.
Chapter 7 Bankruptcy Timeline
Debt Free Colorado
DECEMBER 7, 2016
Lawsuits, garnishments, foreclosures, and other collections stop at this time. Take your Debtor Education Course – Within 45 days of the 341 Meeting. Debts Discharged – No sooner than 60 days after your 341 meeting, but not until the debtor education certificate is filed and court filing fees are paid.
Federal And State Legislators Introduce Bills Seeking Medical Debt Relief
Collection Industry News
MARCH 2, 2021
Democratic senators have reintroduced legislation to prevent health care providers from actions such as wage garnishment in connection with medical debts. wage garnishment, bank account seizure) during the covered period (i.e. wage garnishment, bank account seizure) during the covered period (i.e. Chris Van Hollen, D-Md.,
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Everything You Should Know About a Judgment Lien in Indiana
Sawin & Shea
APRIL 26, 2023
If the creditor has your date of birth and social security number, they may be able to garnish your bank account and apply that money toward your debt balance. This allows them to take possession of your real estate holdings, personal property, or business. Judgment Liens in the Hoosier State In Indiana, judgment liens last for 10 years.
What is Regulation F?
Payment Savvy
NOVEMBER 30, 2021
Lost or garnished wages. Several associations, such as the ACA International , have a wide array of educational resources surrounding Regulation F. In some cases, a court’s rulings may call for debt collectors to make the following payments: Statutory damages of up to $1,000. Attorneys’ fees. What is Regulation F?
District Court Provides Successful Road Map for Bona Fide Error Defense
Consumer Financial Services Law
OCTOBER 16, 2017
11 2017), the debtor, Berry, defaulted on student loans he had taken out with the US Department of Education. Key to the court’s decision was a review of the policies and procedures implemented and followed by Van Ru representatives during live telephone calls with consumers.
What Happens if You Ignore Debt Collectors?
Taurus Collect
MARCH 5, 2024
Creditors may take legal action to recover the debt, which might result in wage garnishment or a lien against your property. Small business owners who are not proactive in addressing collector calls can find themselves in a quagmire. Legal Actions: Ignoring debt collectors can potentially lead to lawsuits.
CFPB Issues COVID-19 Special Edition Supervisory Highlights
Collection Industry News
FEBRUARY 15, 2021
Consumer risks included delays in processing suspensions of administrative wage garnishments, potential FDCPA compliance risks associated with new bank attachments or wage garnishments, and delays in payment processing.
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Tax Season Debt Collection Strategies and Why They Matter
Taurus Collect
JANUARY 24, 2023
This involves filing a lawsuit against you, which could lead to wage garnishment – where part of your wages are automatically withheld each month until your debts are paid off – or even jail time in extreme cases where fraud is involved.
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Freedom Debt Relief Sued for Misleading Consumers
Debt Free Colorado
NOVEMBER 13, 2017
Providers cannot stop collection activity, including collection calls, wage garnishment, judgments, and litigation. Plans may negatively affect your credit score and ability to obtain credit.
Troutman Pepper Weekly Consumer Financial Services Newsletter
Troutman Sanders
MAY 23, 2023
State Activities: On May 19, the Massachusetts Division of Banks and Educational Computer Systems, Inc. The bill also establishes the procedures a depository institution must follow upon receipt of a writ of garnishment or other levy or attachment under certain circumstances. For more information, click here.
Troutman Pepper Weekly Consumer Financial Services Newsletter
Troutman Sanders
NOVEMBER 13, 2023
On November 9, the Department of Education (DOE) announced its plan to implement an oversight strategy of federal student loan servicers that provides several pathways for identifying problems that can harm borrowers, in real-time. For more information, click here.
How To Remove Cavalry SPV I LLC From Your Credit Report
Better Credit Blog
AUGUST 17, 2020
If a debt collector attempts to garnish your wages or bring a lawsuit against you, they’ll have your back, too. These complaints should not be an issue if you educate yourself on your rights under the Fair Debt Collection Practices Act. They’ll also handle the basics, disputing claims, and negotiating pay-for-delete agreements for you.
6 Best Tax Relief Companies of 2021
Better Credit Blog
JANUARY 26, 2022
As an IRS-approved continuing-education provider, it offers further learning programs to its tax professionals. The company is an IRS-approved continuing-education provider licensed to practice in all 50 states. Community Tax is accredited by Consumer Affairs, has an A+ rating with the BBB, and offers a 14-day money-back guarantee.
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What Happens If I Get a Job After Filing Chapter 7?
Sawin & Shea
MARCH 27, 2024
You must complete credit counseling within 180 days of filing your petition, and you’ll need to complete a debtor education course after your Meeting of Creditors. Completing Chapter 7 To complete Chapter 7, you are required to undergo a finance management course as well as credit counseling.
How Can I Stop Student Loans from Taking My Taxes?
Credit Corp
MARCH 9, 2021
If it does, you’ll receive a refund offset notice in the mail in advance of the proposed refund garnishment. If you pay your student loan balance before the IRS issues your tax refund, your refund won’t be garnished. To garnish—i.e., To correct errors and make a claim, contact the Department of Education.
Federal student loan payments could restart in roughly 2 months — or 6. What to know
Collection Industry News
FEBRUARY 20, 2023
Restart depends on Supreme Court decision timing When student loan payments restart depends on how long the Supreme Court justices take to issue a decision on the president’s plan, said higher education expert Mark Kantrowitz. In November, the U.S. And another extension is still possible, Kantrowitz added.
How U.S. Got $1.6 Trillion in Student Loans Debt
Collection Industry News
APRIL 11, 2022
Lockert : “Though student loans originally were created as part of the National Defense Act, there was this idea that we need to become an educated society and so we can create student loans as part of that. Johnson created the Higher Education Act of student loans in 1965 to make it more accessible to everyone. Later on, Lyndon B.
How to Challenge Your Student Loans and How to Get Your Student Loans Forgiven
Credit Corp
OCTOBER 31, 2021
This program was designed to encourage people to enter the education field. Falling behind on your payments can hurt your credit and may even lead to wage garnishment. Some are state-specific and others are federal programs, so check your eligibility requirements in your specific location and field. Teacher Loan Forgiveness Program.
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