Ed. Dept. Pauses Wage Garnishment and Tax Refund Seizures for Defaulted Student Loans
- The Department of Education announced on Friday it will temporarily suspend plans to garnish wages and seize tax refunds from borrowers who are in default on their federal student loans, backing away from collection actions that were expected to resume later this month. The pause affects millions of borrowers nationwide and is intended to give the Department time to implement new repayment and rehabilitation options before restarting involuntary collection activity.
- More details here
Court Cautions Pro Se Plaintiff Over Fictional Cases and AI Reliance in FCRA Ruling
- A District Court judge in Idaho has denied a plaintiff’s motion to dismiss counterclaims and affirmative defenses filed by a defendant in a Fair Credit Reporting Act case while also cautioning the plaintiff for citing fictional cases and relying on artificial intelligence when making his arguments.
- More details here
Washington Bill Would Void Medical Debt That Is Credit Reported
- A medical debt collection bill has been introduced in the Washington legislature that aims to enhance consumer protections and significantly reshape how medical debt can be collected, reported, and enforced across the state. House Bill 1632 would amend multiple sections of Washington law to restrict credit reporting of medical debt and impose new compliance obligations on healthcare providers, collection agencies, and debt buyers.
- More details here
Judge Dismisses FDCPA Claim Over Failure to Remove Dispute Notation
- A District Court judge in Texas has granted a motion to dismiss filed by one of the defendants in a Fair Debt Collection Practices Act case after the defendant was accused of violating the statute by not removing a dispute flag when furnishing information to the credit reporting agencies.
- More details here
Compliance Digest – January 19
- Facts matter. But when it comes to court cases, legal rulings, and new laws and regulations, trying to understand the facts, let alone develop perspective about what those facts mean, is nuanced and difficult. Thankfully, there are experts like Nick Prola, Stephanie Strickler, Crystal Duplay, Brit Suttell, Brendan Little, and David Kaminski to make sure you understand exactly what you need to know.
- More details here
- This series is sponsored by Frost Echols
WORTH NOTING: Consumers are setting strong financial goals for 2026, but are worried that they aren’t going to be able to achieve them … What you can learn about spending from Warren Buffett’s grocery list … More and more consumers are underwater on their auto loans … Medical debt is one of the key items on the agenda for lawmakers in Colorado this year … Older workers are making up more of the labor force today than they did 20 years ago … Prediction markets are the day trading of the 2020s … A doctor weighs in on what you need to consider before starting a diet … The tax deduction that could put more money into the pockets of seniors this year.
Music Monday, part I
Music Monday, part II
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