Last week the Trump Administration directed the Department of Education to put a stop to an Obama-era rule published in 2015 as a memo. The memo, known as a Dear Colleague Letter (DCL), required debt collectors to stop charging high interest rates for defaulted student loans. Trump’s team sent out a letter advising guarantee agencies to … [Read more...]
Senator Sherrod Brown Proposes Legislation to Allow Wells Fargo Customers to Avoid Arbitration
On Monday, Ohio Senator Sherrod Brown announced plans to introduce a bill that would allow customers of Wells Fargo & Co. to sue the company who are currently unable to do so because of contractual arbitration clauses. Arbitration laws allow companies to contractually prohibit customers and employees from suing them in court, instead … [Read more...]
Former Employees File Class Action Lawsuit Against Wells Fargo
Former Wells Fargo employees Alexander Polonsky and Brian Zaghi filed a class action lawsuit against Wells Fargo on September 22 in California Superior Court in Los Angeles County. The lawsuit claims that Wells Fargo’s unrealistic quota of opening ten accounts per day forced employees to either open fake accounts, or to risk demotion or … [Read more...]
Appeals Court Says 2009 GM Bankruptcy Does Not Nullify Defect Claims
In 2009, after the company suffered tremendous losses as a result of the onset of the “Great Recession”, General Motors filed for bankruptcy and restructured itself. The “old” company – General Motors Corp. went in, and the “new company” – General Motors LLC came out. GM recently argued in court that its 2009 restructuring should protect it … [Read more...]
Last Week Tonight with John Oliver: Debt Buyers
https://youtu.be/hxUAntt1z2c From the Last Week Tonight YouTube Channel, "Companies that purchase debt cheaply then collect it aggressively are shockingly easy to start. We can prove it!" … [Read more...]
