Link roundup: 5 subprime stories you might have missed this weekend
Inside Subprime: October 9, 2017
By Caroline Thompson
Good morning! Here are all the most important financial news stories from the past few days.
Pennsylvania attorney general files lawsuit against Navient.
The PA Attorney General’s Office has filed a lawsuit against student loan giant Navient for allegedly “engaging in practices that have harmed countless student loan borrowers by peddling risky and expensive subprime loans that they knew or should have know were likely to default.” Navient denies the charge. Read more at The Philadelphia Inquirer.
Need help managing your student loan payments? Check out this article from the blog.
New rule to help prevent wrongful foreclosures to take effect this month.
A rule from the CFPB designed to protect homeowners from having their homes foreclosed on is set to go into effect on October 19. Servicers must now grant foreclosure protections to struggling borrowers more than once over the lives of their loans, and provide them with information about bankruptcy and possible interventions. Read more at Reuters.
California couple targeted veterans for predatory loans.
Ramil and Melina Abalkad, who own a jewelry store in San Diego, have been arrested for tricking servicemen and women into buying their jewelry with high-interest predatory loans, then using illegal tactics to try and collect on the debt. The couple allegedly created a fake law firm to hound their victims for payments. Read more at The Daily Mail.
For more information on predatory lending in California, check out our California state page.
How can you get a mortgage with no credit?
Author Daniel Bortz breaks down all the ways to buy a home when you’re got little or no credit in this great piece on Realtor.com.
California Governor Jerry Brown signs law allowing customers to sue Wells Fargo (and other banks).
We reported last month on a bill recently passed by the California state legislature, which allows consumers wronged by big banks to band together and sue, despite hidden arbitirian clauses most banks bury in the fine print of their contracts. Last week, CA Governor Jerry Brown signed the bill into law. Read more at The Los Angeles Times.
Read more about Wells Fargo’s legal woes and the CFPB’s fight to get consumer justice:
- What’s up with Wells Fargo? An updated scandal timeline
- CFPB finalizes payday lending debt trap rule
- ‘Credit repair’ scam threatened with shut-down and fined $150,000