All posts in Current Events

NEWS RELEASE May 9, 2013

Attorney General Kamala D. Harris Announces Suit Against JPMorgan Chase for Fraudulent and Unlawful Debt-Collection Practices

LOS ANGELES — Attorney General Kamala D. Harris today filed an enforcement action against JPMorgan Chase & Co. (Chase) alleging that the bank engaged in fraudulent and unlawful debt-collection practices against tens of thousands of Californians.

The suit alleges that Chase engaged in widespread, illegal robo-signing, among other unlawful practices, to commit debt-collection abuses against approximately 100,000 California credit card borrowers over at least a three-year period.

“Chase abused the judicial process and engaged in serious misconduct against California credit card borrowers,” Attorney General Harris said. “This enforcement action seeks to hold Chase accountable for systematically using illegal tactics to flood California’s courts with specious lawsuits against consumers. My office will demand a permanent halt to these practices and redress for borrowers who have been harmed.”

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To contact the reporter on this story: Kathleen M. Howley in Boston at kmhowley@bloomberg.net.

To contact the editor responsible for this story: Rob Urban at robprag@bloomberg.net.

Luke Nichter of Harker Heights, Texas, said he’s not a renter by choice. The Texas A&M University history professor’s $125,000 of student debt means he has no hope of getting a mortgage.

Nichter, 35, who’s paying $1,500 a month on loans for degrees from Bowling Green State University in Ohio, is part of the most debt-laden generation to emerge from college. Two- thirds of student loans are held by people under the age of 40, according to the Federal Reserve Bank of New York, blocking millions of them from taking advantage of the most affordable housing market on record. The number of people in that age group who own homes fell by 4.6 percent in the fourth quarter from the third, the biggest drop in records dating to 1982.

“Student debt has a dramatic impact on the ability to buy a house, and to buy the dishwashers and the lawnmowers and all the other purchases that stem from that,” said Diane Swonk, chief economist of Mesirow Financial. “It has a ripple effect throughout the economy.”

The issue is being exacerbated by an explosion in the $150 billion private market for student debt with interest rates for some existing loans surpassing 12 percent. Unlike mortgage holders, borrowers have little hope of refinancing at lower rates. Interest on some new federal loans is set to double to 6.8 percent in July if Congress doesn’t extend the current rate, as they did last year.

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From http://www.abajournal.com/news/article/7th_circuit/

By Martha Neil

A “destitute” paralegal who has made reasonable efforts to repay her student loan debt is entitled to a bankruptcy discharge of the remaining $25,000 or so despite the fact that she never enrolled in a federal income-contingent repayment plan, a federal appeals court has ruled.

Reinstating a bankruptcy court’s determination that Susan M. Krieger is entitled to the discharge and reversing a federal district court’s decision to the contrary, the Chicago-based 7th U.S. Circuit Court of Appeals said the bankruptcy court had discretion to decide whether requiring Krieger to repay the student loan debt would be an undue hardship.

In a Wednesday opinion (PDF) authored by Judge Frank Easterbrook, the 7th Circuit also said that requiring Krieger to enroll in the income-contingent repayment plan as a show of good faith, was contrary to the purpose of bankruptcy law.

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Please join us on April 27th for the LCL 5K Run/Walk Fundraiser to benefit Public Counsel.

The race runs along a fast, scenic course from Ocean and San Vicente and through the lovely residential area in beautiful Santa Monica. Enjoy the scenery and 5K jog/walk with friends! The race starts and ends at Reed Emerson Park at the corner of 7th and California, and if you want to improve your performance in this races even more, you can get supplements for this, read this article to find the best supplements for this. Get pumped at the start and celebrate your finish with music from our DJ, and post-race snacks for all participants. Medals will be given to the top 3 finishers in each age group. Prizes will be awarded to top overall male, top overall female, overall fastest team, and fundraising champions.

All registered runners/walker will get a Nike running tee!

This race benefits the Public Counsel Debtor Assistance Project and Samohi Cross Country/Track team. Enjoy a very special morning while supporting Public Counsel and the public school sports program!

You can register at: https://www.imathlete.com/events/EventReg/EventReg_SelectType.aspx?fEID=14922&fNew=1

The Department of Corporations is pleased to participate in this great event “Help For Homeowners Event.” It is hosted by the Departments of the Treasury & Housing and Urban Development on April 16 at the Los Angeles Convention Center to help distressed homeowners. We encourage you to share the attached flier (in English and Spanish) with your colleagues and clients who may need this assistance. I will be there and hope to see you.

At the event consumers will have the opportunity to meet directly with their servicer, the Government Sponsored Enterprises (GSEs), housing counselors, and other resources that would be extremely helpful. They also have a short sale workshop for real estate professionals to hear from Treasury, the large servicers, and GSEs about specific short sale policies and procedures.

I have attached flyers of the event in English and Spanish.

Best,

Maggie

Magdalena Reyes Bordeaux
Supervising Attorney
Public Counsel
Consumer Law Project &
Debtor Assistance Project

Public Service Announcement — FOR IMMEDIATE RELEASE — March 18, 2013

$9.3 Billion in Payments and Foreclosure Assistance to Begin in April 2013

On March 18, 2013, more than 4.2 million people were sent postcard notices about payments they will receive as a result of an agreement between federal banking regulators and 13 mortgage servicers. As a result of this agreement, the Independent Foreclosure Review ceased at those servicers. A full list of companies and their affiliates or subsidiaries covered by the agreement are listed below.

The agreement provides $3.6 billion in cash payments to borrowers covered by the agreement. Borrowers covered by the agreement include those whose primary residences were in any stage of the foreclosure process in 2009 or 2010 and whose mortgages were serviced by one of the participating servicers.

Payments are expected to range from a few hundred dollars to $125,000. By accepting the payment, borrowers do not waive any legal claims against their servicer and may pursue additional actions related to their foreclosure.

In most cases, a letter with an enclosed check sent by the Paying Agent—Rust Consulting, Inc.—will arrive in 4 to 8 weeks. Some borrowers may receive a letter from Rust requesting additional tax-related information that will be needed to process their payment. Correspondence will be sent at the direction of the Office of the Comptroller of the Currency (OCC) and the Board of Governors of the Federal Reserve.The federal banking regulators will provide more details about the payments in early April.

To verify that you are covered by the agreement or to update contact information, call Rust Consulting at 1-888-952-9105. Information provided to Rust will only be used for purposes relating to the agreement.

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