July 2015 Archives

Discover fined for student loan practices

Discover Financial Services has been ordered to pay approximately $16 million in restitution and another $2.5 million in fines for illegal collection practices with respect to private student loans, according to the Consumer Financial Protection Bureau. Discover is mostly known for credit cards, but the company allegedly overcharged student loan borrowers, denied them tax benefits, called them early in the morning and late at night and engaged in other illegal acts. This will affect more than 100,000 borrowers in Minnesota and around the country.

Why 50 Cent filed for Chapter 11 bankruptcy

Minnesota residents may be familiar with the fact that 50 Cent is filing for bankruptcy. However, most people may not be aware of the fact that he is filing under Chapter 11. This is a step that most corporations take when trying to reorganize their debt, and it appears that he will propose a plan to restructure his obligations while continuing his business operations.

Foreclosures up sharply in May 2015

Minnesota homeowners may have heard that foreclosure rates reached a 19-month high in May 2015. The number of properties in foreclosure was 1 percent higher than it had been in April and 16 percent higher than a year ago. Recent figures released by RealityTrac reveal that foreclosure filings in May affected one out of every 1,041 homes in the United States. Foreclosure filings include bank repossessions, notices of default and scheduled auctions.

Debt may be "parked" on a credit report

Many Minnesota residents have gone through the disappointing experience of finding a collection account on their credit report that they never received a bill for. Often, collection agencies will engage in a practice called 'parking" debt where they report a debt to the credit bureaus before communicating with the debtor.

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