National Consumer Law Center

If Congress ends Public Service Loan Forgiveness, will the government try to claw back canceled debt from the people who have already had their balances go to zero? Doing so would be legally dubious and logistically complicated, not to mention cruel, given that the federal government has already used P.S.L.F. to cancel the debt of over one million people. According to Abby Shafroth, a co-director of advocacy for the National Consumer Law Center, there is a presumption against retroactivity that would force Congress to pass a law specifically designed to reinstate debts — separate and apart from any successful bid to cancel the P.S.L.F. program. #ProtectBorrowers #ProtectConsumers #DefendStudents via The New York Times

The Consumer Financial Protection Bureau (CFPB) took bold action today against Global Tel Link (GTL), one of the country’s largest providers of money transfer services to justice-involved consumers, for violating the Consumer Financial Protection Act (CFPA) when it blocked consumers’ accounts and prevented friends and family from sending funds via debit card or credit card transfer. GTL also drained incarcerated consumers’ accounts after a period of inactivity, without notice, and failed to disclose complete fee schedules for money transfers. “Families often have no choice but to rely on GTL to send money to their incarcerated loved ones so they can buy essentials like hygiene products, medicine, food, and phone calls,” said Ariel C. Nelson Nelson, staff attorney at the National Consumer Law Center who also directs NCLC’s Criminal Justice Debt & Reintegration Project. “The CFPB’s action today sends a clear message that incarcerated people and their families – some of the most economically vulnerable consumers and communities – cannot be preyed upon by private companies using their monopoly power and illegal schemes to increase profits.” #CriminalJustice #ProtectConsumers

“For three decades, Janet V. has inspired everyone around her with her passion for protecting consumers and advancing the consumer law community, and she is enormously deserving of this prestigious award,” said Richard Dubois, NCLC executive director. “She’s a tenacious and creative litigator who has never shied away from pursuing novel legal strategies to protect consumers from greed and abusive practices. With her trademark energy and optimism, she is a visionary leader and an exceptional advocate.” #ProtectConsumers #ConsumerLaw

"The law that applies to credit cards, the Truth in Lending Act, is more protective than the Electronic Funds Transfer Act," said Carla Leticia Sanchez-Adams, senior attorney at NCLC. "I always caution and advise consumers who have the ability to have credit cards to use those to make payments because they are much safer than any other type of payment. But not everybody can get a credit card." Overall, she says, an account holder can't be blamed for negligence should a thief get ahold of their PIN. #ProtectConsumers via CBS News

"These challenging times call for bold and creative thinking about how best to defend the rights and interests of the most vulnerable and marginalized in our society," said NCLC Executive Director Richard Dubois. "No matter who holds power in Washington, we will always stand up for the rights of low-income consumers and hold policymakers accountable for their actions." #ProtectConsumers #ConsumerLaw #Equity #RacialJustice

"When nursing homes attempt to hold residents' family members and friends personally financially liable for unpaid bills, they may be violating federal and state laws," said Anna A., a staff attorney at the National Consumer Law Center (NCLC) and co-author of the report. "These aggressive debt collection practices can have serious financial consequences for caregivers and residents. Federal and state officials and courts must enforce existing laws and adopt new policies to address these ongoing issues." #ProtectConsumers cc: Justice in Aging via ConsumerAffairs

"I think it's groundbreaking," said Andrea Bopp Stark, senior attorney at NCLC in response to the Massachusetts Attorney General's Office's cracking down on a company collecting 'zombie second mortgages.' "I think it's really hopeful, because it's kind of a roadmap for other states to use, not just against Franklin, but any debt buyer or lender who is engaging in this kind of conduct with zombie second mortgages." #ProtectConsumers #FairHousing #mapoli NPR

The Center for Responsible Lending (CRL), National Consumer Law Center (NCLC), and the Student Borrower Protection Center (SBPC) submitted comments urging bank regulators to end bank-fintech partnerships that engage in predatory lending, evade the law, and pose a high risk of unfair, deceptive, or abusive practices and violations of consumer protection laws. “Banks should not be in the business of helping fintechs evade consumer protection laws or make 200% APR loans that almost every state prohibits,” said Lauren Saunders, associate director of the National Consumer Law Center. #ProtectConsumers #StopTheDebtTrap #fintech #RentaBank

What a delight to witness my Public Justice predecessor Paul Bland introduce my Board President Janet Varnell as the 2024 Vern Countryman Award winner at this year’s National Association of Consumer Advocates and National Consumer Law Center conference. Janet’s inspiring remarks left nary a dry eye in the room. I feel so lucky to have been there for this special moment with this special human.

Even though federal law prohibits nursing homes from requiring a third party to guarantee payment of their loved one’s bill, nursing homes still frequently pursue payment from friends and family, and advocates report increased levels of aggression in recent years. A new report from NCLC and Justice in Aging looks at what happens when nursing homes pursue family members and friends to collect nursing home charges, which typically run more than $108,000 per year. “When nursing homes attempt to hold residents’ family members and friends personally financially liable for residents’ unpaid bills they may be violating federal and state law,” said Anna A., staff attorney at the National Consumer Law Center and co-author of the report. “Nursing homes’ aggressive debt collection practices can lead to serious financial consequences for caregivers and residents. Federal and state officials and courts must act to enforce existing law and adopt new policies to address ongoing problems.” #ProtectConsumers