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Attorney General Becerra Joins Multistate Letter Urging Secretary DeVos to Protect Student Loan Borrowers During COVID-19 Public Health Crisis
SACRAMENTO – California Attorney General Xavier Becerra today joined a multistate coalition of 27 attorneys general in submitting a comment letter to Secretary of Education Betsy DeVos calling on her to immediately implement emergency measures to protect federal student loan borrowers in the wake of the COVID-19 crisis. Under the Higher Education Relief Opportunities for Students Act of 2003 (“HEROES Act”), Secretary DeVos has the authority to waive or modify statutory or regulatory provisions applicable to student financial assistance programs during a national emergency.
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$2 trillion coronavirus stimulus bill gives student-loan borrowers six months of relief
Student-loan borrowers struggling to make payments as the coronavirus cripples parts of the U.S. economy will get a temporary break under the $2.2 trillion stimulus bill the Senate unanimously approved late Wednesday. The Coronavirus Aid, Relief and Economic Security (CARES) Act lets student-loan borrowers take a six month break from making payments on their federally-backed student loans.
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Federal Agencies Encourage Banks, Savings Associations, and Credit Unions to Offer Responsible Small-Dollar Loans to Consumers and Small Businesses Affected by COVID-19
WASHINGTON, D.C. – Five federal financial regulatory agencies today issued a joint statement encouraging banks, savings associations, and credit unions to offer responsible small-dollar loans to consumers and small businesses in response to COVID-19. The statement of the Board of Governors of the Federal Reserve System, Consumer Financial Protection Bureau, Federal Deposit Insurance Corporation, National Credit Union Administration, and Office of the Comptroller of the Currency recognizes that responsible small-dollar loans can play an important role in meeting customers’ credit needs because of temporary cash-flow imbalances, unexpected expenses, or income disruptions during periods of economic stress or disaster recoveries.
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FTC Returns More than $3.1 Million to Victims of Student Loan Debt Relief and Credit Repair Scheme
The Federal Trade Commission is mailing checks totaling more than $3.1 million to consumers who were victims of a student loan debt relief and credit repair scheme. Strategic Student Solutions (also doing business under other names) and its owner, Dave Green, settled FTC allegations that they charged consumers illegal upfront fees and falsely promised to reduce their student loan debt or monthly payments by enrolling them in student loan forgiveness or other programs. The FTC also alleged that the defendants falsely promised to apply monthly payments to consumers’ student loans and to improve their credit scores and histories.
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Big U.S. banks offer forbearance on mortgages -California Governor
SAN FRANCISCO, March 25 (Reuters) - Four of the nation’s five largest banks have agreed to postpone foreclosures and offer forbearance on mortgage payments for three months for homeowners impacted by COVID-19, California Governor Gavin Newsom said on Wednesday. But while JP Morgan Chase, US Bank, Wells Fargo , Citi and 200 state-chartered banks and credit unions all agreed to offer 90 days of protections, Bank of America had “unfortunately” only committed to 30 days, he said.
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Small-dollar loans highlight banks’ coronavirus relief efforts
With the novel coronavirus pandemic shutting down nearly every aspect of daily life, banks have begun extending cheap credit and other forms of relief to help customers withstand the economic shocks. Liberty Bank in Middletown, Conn., for example, will soon begin making unsecured consumer loans of up to $5,000 at no interest for its customers. The $5.9 billion-asset bank has committed $5 million to that loan program to go along with other customer relief efforts.
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BETTER BUSINESS BUREAU RECOGNIZES FMA WITH AWARD
In recognizing businesses and non-profits for their achievements and commitment to quality in the workplace, FMA was recognized at the annual Better Business Bureau Awards of Excellence on March, 2020. Recognized as a Winner of Distinction, this was the sixth time (2015-2020) to be recognized by the Better Business Bureau for service excellence.
When asked what it means to FMA to receive this recognition, Mike Janakes, president, states “We work hard to provide top notch service to our customers and clients and it is an honor to be recognized for our efforts.”
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A Rent Wipeout Could Ignite a Mortgage Crisis
(Bloomberg Opinion) -- The rent is too high. And that’s causing consternation across Wall Street desks still traumatized by the 2008 financial crisis. As the days go by in an unprecedented shutdown of the U.S. economy to slow the coronavirus outbreak, any amount of rent looks increasingly difficult to cover for a wide swath of Americans, from recently fired service workers to local small-business owners. Unfortunately for those most affected, these payments can’t simply be wiped out — at least, not without dire repercussions. My Bloomberg Opinion colleague Noah Smith wrote a column this week arguing that people need a break on all sorts of debts. But when it comes to rent, there’s pretty much no way around people eventually paying what they owe, ideally with the help of the U.S. government, or else risk “turning a health crisis into a banking crisis.”
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Coronavirus & Crypto Lending: Could the Crisis Bring New Clients?
The crisis brought on by the coronavirus has been a shock to the entirety of the global economy. All around the world, every industry is scrambling to find ways to adjust to the new paradigm that was thrust into reality several weeks ago. One of the most visible points of damage has been global financial markets. In just about every corner of the financial world, markets have cliff-dived, sending investors into a frenzy and forcing companies to build new strategies and contingency plans.
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DeVos halts collection of defaulted federal student loans
The Trump administration has stopped seizing the wages, tax refunds and Social Security benefits of people who are in default on their federal student loans, an administration official confirmed to POLITICO on Tuesday.
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Mortgage industry lays out its case for widespread coronavirus emergency relief
The mortgage industry’s biggest trade and lobbying groups are banding together to push the federal government for widespread relief for all borrowers affected by the coronavirus outbreak in the U.S.
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The top reasons people get into credit card debt—and how to avoid them, from an Equifax expert
Nobody wants to fall into debt, but it happens all too easily — and quickly. Some of the most common expenses that throw people into credit card debt are unexpected medical bills, emergency expenses and even just everyday spending, such as on groceries, that adds up. But according to Beverly Anderson, president of global consumer solutions at Equifax (one of the three main credit bureaus), the top reasons people get into credit card debt are actually quite predictable since the majority of people who take it on make the following three mistakes.
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House Democrats unveil bill to cancel $30,000 in student debt per borrower amid coronavirus
House Representatives Ayanna Pressley (D-MA) and Ilhan Omar (D-MN) are proposing to cancel student debt with new legislation aimed at helping borrowers adversely affected by the coronavirus, or COVID-19. The legislation, called the Student Debt Emergency Relief Act, proposes the cancellation of at least $30,000 in outstanding debt, tax-free, and proposes that the Education Department (ED) “immediately assume responsibility” for the monthly payments of borrowers who hold federal loans while suspending involuntary collections or garnishments of wages or federal income tax returns amid the crisis.
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Media Advisory: Consumer Financial Protection Bureau Resources for Consumers During COVID-19 Pandemic
The Consumer Financial Protection Bureau (Bureau) has recently released several resources to help consumers take steps to protect their finances during the COVID-19 pandemic, including how to avoid financial scams and submit complaints to the Bureau.
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ARM INDUSTRY RACES TO ASSIST CONSUMERS WHILE HOLDING OFF SUBSTANTIVE REVENUE DIPS
As the pandemic coronavirus (COVID-19) spreads throughout the world, reports from the Centers for Disease Control and World Health Organization provide guidelines for quarantine, social distancing (quite the challenge for traditional call centers) and good hygiene. The effects are already being seen in the economy, strained health care systems and in shortages of necessary supplies. The US Federal Reserve initiated an emergency interest rate reduction (the largest one-time reduction since the 2008 recession) to stabilize the economy, followed by another reduction to 0%. Layoffs are intensifying and unemployment is soaring as economists predict a global recession. Credit Issuers and ARM companies are actively deploying aspects of their business continuity plans to meet the safety needs of employees, and business needs of their customers. It has become glaringly obvious, that while companies have developed disaster readiness policies, most of these were predicated on singular sites going offline and not on a global pandemic with much further reaching implications and global considerations.
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Cory Booker wants to ban banks from charging overdraft fees during coronavirus outbreak
About half of Americans report the coronavirus pandemic is already having a negative effect on their income. To combat their worries about paying the bills, two Democratic senators are introducing a bill that would keep consumers from paying unnecessary bank fees.
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JPMorgan plans firm-wide hiring freeze amid virus uncertainty
JPMorgan Chase & Co. froze hiring across most of the firm as millions of people stay at home to help stem the spread of the coronavirus, according to people familiar with the matter. The bank asked managers in businesses including the corporate and investment bank, the consumer unit, and the asset- and wealth-management group to review job postings and pull listings for roles that don’t need to be filled immediately, said the people, who asked not to be identified discussing the private plans.
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Agencies Provide Additional Information to Encourage Financial Institutions to Work with Borrowers Affected by COVID-19
WASHINGTON, D.C. – The federal financial institution regulatory agencies and the state banking regulators issued an interagency statement encouraging financial institutions to work constructively with borrowers affected by COVID-19 and providing additional information regarding loan modifications.
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FTC Sends More than $6.9 Million in Refunds to Victims of Office Supply Scam
The Federal Trade Commission is sending refunds totaling more than $6.9 million to small businesses, non-profits, and government agencies targeted by an office supply telemarketing scam that charged them for products they did not order. The FTC alleged that defendants’ victims included child care centers, schools, and police and fire departments.
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Agencies tell banks they will not be criticized for loan modifications
WASHINGTON — Five federal banking agencies and a trade group for state banking regulators issued guidance Sunday encouraging banks to make loan modifications for borrowers affected by the coronavirus. The joint statement by the Federal Reserve, Federal Deposit Insurance Corp., Office of the Comptroller of the Currency, Consumer Financial Protection Bureau, National Credit Union Administration and Conference of State Bank Supervisors said banks will not be required to categorize those modifications as troubled debt restructurings.
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Banks supplement benefits to help employees affected by coronavirus
As the novel coronavirus spreads throughout the U.S., banks are adding extra benefits for employees working in branches as well as those pulled away from work to deal with illness and caregiving responsibilities. They are paying bonuses to front-line employees still working, or offering extra paid time off for those who are sick or self-quarantined, financial assistance with child care, or virtual doctors’ appointments. In a global pandemic, the added benefits aren’t just the right thing to do for employees, they’re also a valuable public health measure that could help slow the disease’s spread, bankers say.
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CFPB urged to protect elderly from pandemic scammers
WASHINGTON — As the coronavirus pandemic continues to make Americans economically vulnerable, lawmakers and consumer advocates are calling on the Consumer Financial Protection Bureau to protect older Americans from financial scams. Earlier this week, House Republicans warned CFPB Director Kathy Kraninger in a letter that the CFPB’s guidance on financial abuse of older adults has not been updated since 2013. And other consumer advocates are calling on the agency to give financial institutions better tools to protect customers against scams related to the pandemic.
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Consumer Financial Protection Bureau Releases Report on 2019 Administration of the Fair Debt Collection Practices Act; Announces Extension of Comment Period
WASHINGTON, D.C. – The Consumer Financial Protection Bureau (Bureau) released today the annual report to Congress on the administration of the Fair Debt Collection Practices Act (FDCPA). The report highlights the continued efforts by the Bureau and the Federal Trade Commission (FTC) to stop unlawful debt collection practices, including vigorous law enforcement, consumer education and public outreach, and policy initiatives. extended to June 5, 2020.
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U.S. jobless claims could top record 1.5 million next week: economists
WASHINGTON (Reuters) - A wave of layoffs at restaurants, bars and hotels, as efforts to contain the coronavirus pandemic bring much of everyday American life to a halt, could drive new applications for U.S. unemployment benefits to a record 1.5 million or more next week, economists warned on Thursday.
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Relief for underwater homeowners will be different this time, lenders say
The mortgage industry is insisting that this time will be different. Borrowers who can’t afford their monthly payments as a result of the COVID-19 pandemic will be treated in a more uniform fashion they were during the last downturn. They will be taken at their word regarding how they’ve been affected, rather than having to provide extensive documentation. And they will not be subject to concerns, as many homeowners were a decade ago, that granting relief will shield borrowers from the bad consequences of their own decisions.
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More banks shut down branch access as COVID-19 spreads
More banks have begun to close or limit branch access as the novel coronavirus has continued to spread throughout the U.S. Truist Financial in Charlotte, N.C., KeyCorp in Cleveland, Fifth Third Bancorp in Cincinnati, and PNC Financial Services Group in Pittsburgh all said Thursday that they would limit access at many of their branches to the drive-through window. Truist, Key and PNC said they would also allow branch access by appointment only. Regions Financial in Birmingham, Ala., made a similar announcement late on Wednesday
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Coronavirus Bites Collectors: State of Nevada “Recommends” Debt Collectors to Stop All Collection Activity
In another sign of the remarkable times we find ourselves in, a Deputy Commissioner of the Nevada Department of Business and Industry “recommended” (!) that all debt collectors in the state hang it up for a month in response to the Governor’s order shuttering all non-essential businesses in the state.
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FCA sets out new guidance for lenders taking part in the Coronavirus Business Interruption Loan Scheme
The Financial Conduct Authority has published new guidance for mortgage lenders and administrators, and small business lenders regarding payment holidays due to the coronavirus.
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Online security tips for working from home
Teleworking during the Coronavirus outbreak? While working from home can help slow the spread of the virus, it brings new challenges: juggling work while kids are home from school; learning new software and conferencing programs; and managing paper files at home. As you’re getting your work-at-home systems set up, here are some tips for protecting your devices and personal information.
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Coronavirus Spread Puts Fintech Lenders At Risk
As the coronavirus spreads at an exponential rate and U.S. consumers stay locked in their homes, businesses large and small are hunkering down, many laying off workers as they try to survive a recession. Among financial technology companies, those lending money to average Americans may be facing the biggest risks, as unemployment grows and any stimulus Congress passes replaces only a portion of lost income.
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Patterson Proposes Debt Suspension to Help Americans Weather COVID-19 Crisis
Ocean City, NJ – Conservative Republican Bob Patterson, (NJ-02) urged Congress to pass legislation giving Americans immediate relief to weather the economic turmoil brought on by coronavirus.Specifically, Patterson called on Congress to pass legislation allowing every American to take a three-month holiday on mortgage payments, car payments, and personal loans — all free of interest and penalties. The three months of suspended payments, which could be extended if the crisis persists, would be tacked on to the current end of the loan terms.
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Little signs medical debt bill
BOISE — Idaho Gov. Brad Little has signed a bill to put some limits on medical debt collection in Idaho. The Idaho Patient Act, which takes effect on Jan. 1, 2021, will require providers to submit a bill to a patient’s insurance or to the patient within 45 days of providing a service or discharging the patient and to send the patient a summary of services within 15 days after that. From there, no interest could be charged for another 60 days, and a medical provider could not sue a patient or turn a bill over to collections until 90 days after a patient receives a final statement.
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Inslee Signs Debt Collection Protections Into Law
Governor Inslee has signed Substitute House Bill 2476 into law, with the goal of making debt collections more transparent to the public.
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Legal groups request moratorium on eviction, debt collection cases in Nebraska amid coronavirus
Organizations that represent low-income tenants and debtors in Nebraska courts asked the chief justice of the Nebraska Supreme Court on Thursday to halt eviction and debt collection court proceedings statewide.
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