Monday link roundup: 4 subprime stories you need to know

Inside Subprime: October, 16, 2017

By Caroline Thompson

Good morning! Here are four subprime stories you may have missed this weekend.

SoFi retracts application to become a bank amid sexual harassment scandal.

We reported last month that online lender SoFi may have ruined its chances of gaining a banking license after reports of deep rooted sexual misconduct surfaced. Now it seems the bank has given up this particular dream. “With SoFi’s leadership in transition, we’re withdrawing our application with the FDIC for now,” said a SoFi spokesman. “A bank charter remains an attractive option when the time is right.” Read more at The Wall Street Journal.

IRS (finally) cuts ties with Equifax after second hack. 

Despite the hack that cost 145.5 million Americans their sense of financial security, the IRS still awarded disgraced credit bureau Equifax a $7 million contract last month. But it seems even the federal government has its limit for nonsense. Last week, the Equifax site was hacked once again, and that was the final straw. The IRS announced on Friday that it would be suspending its contract with the bureau as a “precautionary step.” Read more at CBS News.

Two men found guilty of online payday lending scam. 

Scott Tucker and Timothy Muir were found guilty on Friday of running an illegal, online payday lending enterprise that charged up to 1,000 percent in interest. Both men face lengthy prison terms, and will be on house arrest until they are sentenced on January 5. Read more at The Kansas City Star.

Click here for more information on why payday loans are a bad, bad idea.

FTC announces nationwide crackdown on student debt relief scams.

In partnership with 11 states across the nation, the Federal Trade Commission has announced it plans to crack down on deceptive debt relief scams that defrauded student borrowers out of $95 million over the past few years. They’re calling it “Game of Loans,” and the official press release is filled with some GOT puns for the ages: “Winter is coming for debt relief scams that prey on hardworking Americans struggling to pay back their student loans,” said Maureen K. Ohlhausen, FTC Acting Chairman. “The FTC is proud to work with state partners to protect consumers from these scams, help them learn how to spot a scam, and let them know where to go for legitimate help.” Read more at