Credit scores decline for millions as US student loan collections restart
Millions of Americans are seeing their credit scores suffer now that the U.S. government has resumed referring missed student loan payments for debt collection.
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‘Cautiously optimistic’: Attorneys say inflation causing banks, clients to ‘sharpen pencils,’ but projects, investments moving ahead
Between interest rates, labor shortages, supply chain issues, the ongoing war in Ukraine and the aftereffects of COVID-19, debtors and creditors are facing some uncertainties, attorneys say.
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Down to business: Indiana Coalition Against Domestic Violence legal team helps survivor untangle from financial mess
A pro bono team of lawyers helped a grateful domestic violence survivor get untangled from a business her ex-husband had set up in her name that left her facing substantial financial obligations.
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Web Exclusive: Young lawyers say hefty student loans limit life after graduation
A recent survey of nearly 1,100 young lawyers found that many new attorneys are making major financial, personal and career sacrifices as a result of their student loans. That includes decisions ranging from marriage and children to making big purchases or taking vacations. The survey hits home for many young Indiana lawyers.
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Articles
Anthony Jost and Lindsay Llewellyn: New rule would remove medical debt from credit reports
The Consumer Financial Protection Bureau found roughly 43 million Americans had medical bills on their credit reports, totaling nearly $88 billion dollars. Those debts comprised 58 percent of the bills in collections on people’s credit reports.
The Biden administration has canceled student loans for more than 1 million in public service jobs
A student loan cancellation program for public service workers has granted relief to more than 1 million Americans — up from just 7,000 who were approved before it was updated by the Biden administration two years ago.
Biden’s student loan cancellation is put on hold again after day of legal whiplash
A federal judge in Missouri put a temporary hold on President Joe Biden’s latest student loan cancellation plan on Thursday, slamming the door on hope it would move forward after another judge allowed a pause to expire.
Department of Justice sues Visa, saying the card issuer monopolizes debit card markets
The U.S. Justice Department has filed an antitrust lawsuit against Visa, alleging that the financial services behemoth uses its size and dominance to stifle competition in the debit card market, costing consumers and businesses billions of dollars.
Supreme Court rebuffs Biden administration plea to restore multibillion-dollar student debt plan
The Supreme Court on Wednesday kept on hold the latest multibillion-dollar plan from the Biden administration that would have lowered payments for millions of borrowers, while lawsuits make their way through lower courts.
Appellate court cites bank, debt collector’s failure to meet fact-to-face in affirming judgment
A debt collector working on behalf of a bank did not satisfy the federal face-to-face meeting requirements required for foreclosure on a Lafayette residence, the Indiana Court of Appeals ruled Friday in affirming a lower court’s judgment in favor of the property’s owner.
7th Circuit Court affirms lower court’s dismissal of lawsuit against loan servicer, bank
The 7th Circuit Court of Appeals affirmed a district court’s dismissal of Fair Credit Reporting Act and Fair Debt Collection Practices Act violations after the plaintiff failed to state an FCRA claim and lacked standing to bring an FDCPA claim.
U.S. consumer agency proposes to ban medical debt from credit reports, loan decisions
The rules would ban credit reporting agencies from incorporating medical debt when calculating credit scores. They would also bar lenders from using medical debt to determine loan eligibility.
Biden administration looks to expand student loan forgiveness to those facing ‘hardship’
Americans who are struggling to repay federal student loans because of financial hardship could get some of their debt canceled under President Joe Biden’s latest proposal for widespread loan forgiveness.
COA splits in upholding motion to set aside summary judgment
A split Court of Appeals of Indiana has upheld the grant of a motion to set aside summary judgment in a dispute involving a financial company and a woman whose ex-husband admitted to using her identity to fraudulently obtain a loan.
IN Southern District collects $25M in forfeiture assets, financial litigation debt in FY23
The U.S. Attorney’s Office for the Southern District of Indiana collected more than $25 million in asset forfeiture and financial litigation debt in fiscal year 2023.
Americans have become saddled with credit card debt. Now renters and poor people are falling behind
While the U.S. economy is broadly healthy, pockets of Americans have run through their savings and run up their credit card balances after battling inflation for more than two years.
Some Americans will get their student loans canceled in February as Biden accelerates his new plan
The Biden administration will start canceling student loans for some borrowers in February as part of a new repayment plan that’s taking effect nearly six months ahead of schedule.
Bankruptcy filings slowly inch up in Indiana, nationally: Student loan repayments, credit card debt, inflation seen as key factors
Bankruptcy filings in Indiana’s Northern and Southern Districts fell in 2021 and 2022. But those filing numbers are starting to finally creep up, with year-over-year increases reported in the Northern and Southern Districts and nationally in June.
Biden administration aims to scrub medical debt from credit scores, boosting ratings for millions
U.S. Vice President Kamala Harris said Thursday that the Biden administration is taking the first steps toward removing medical bills from people’s credit scores, which could improve ratings for millions of people.
Appeals court halts new Biden rules on debt relief for defrauded students
On Monday, the U.S. Court of Appeals for the 5th Circuit issued an injunction to prevent the government from implementing regulations that took effect last month while it considers a lawsuit brought by Career Colleges and Schools of Texas.
Conservative groups sue to block Biden plan canceling $39 billion in student loans
Two conservative groups are asking a federal court to block the Biden administration’s plan to cancel $39 billion in student loans for more than 800,000 borrowers.
Latest plan to cut student loan payments could be in for legal battle
The Biden administration calls it a “student loan safety net.” Opponents call it a backdoor attempt to make college free. And it could be the next battleground in the legal fight over student loan relief.
In Indianapolis, VP Kamala Harris takes shots at Supreme Court
A sea of red dresses and gowns flowed into the Indiana Convention Center on Thursday to see Vice President Kamala Harris deliver the keynote address at the 56th national convention of Delta Sigma Theta.