Financial Capability News
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Advocates seek more limits on debt collectors
“It is big volume business right now,” said Margaret Miley, an adviser for the Midas Collaborative, an Allston based network of community groups. “There needs to be more done to regulate this growing industry.” Full text PDF here.
Gonsalves: Don't swim with loan sharks
"As consumer debt has risen to historic highs, so have for-profit "debt settlement" companies — loan sharks who offer to consolidate their clients' debt and negotiate a lump sum settlement with creditors." Full text PDF here, archive link here.
A bill of goods on debt management
"Gateway Cities were particularly hard hit by fraudulent mortgage lending in the years leading up to the 2008 housing market collapse. Born from the ashes of this crisis, there's a new predatory financial service hitting our communities: for-profit “debt management” or “debt settlement” companies. A bill before the state legislature could lead to their proliferation." Full text PDF here, archive link here.
Editorial: Teach Finance
From the Metro West Daily News, "it is long past time Massachusetts incorporated financial literacy into the public school curriculum. We do no service to our children by sending them out into the world knowing all about geometry and history, but nothing about how to balance a checkbook." Download the PDF here.
Lawmakers: Make personal finance a school requirement
The bill to require financial education in public schools, that Midas supports, gets covered by the Lowell Sun, discussed on local National Public Radio affiliate, WBUR, and posted on the WBUR website. Download the PDF here.
The Current U.S. Tax System is tilted toward the haves
The Washington Post editorial team is taking on the federal tax code today, highlighting CFED's latest research on the federal asset building budget. Download the PDF here.
Census Finds record gap between rich and poor
This article looks at the statistics of the newly released Census, and finds that the gap between the rich and poor is becoming even wider in the United States. Read the full story here.
College Grads: $24,000 in Debt
CNN money has published an article detailing how college students are taking on more and more debt, while receiving fewer jobs to pack back loans upon graduation. Download the PDF here.
What to do if you can't pay student loan bills?
Are you a recent college graduate or even have graduated for years and are worrying about student loans to pay for? Here is a slide show article provided by Boston based non-profit American Students Assistance on tips for how to handle student loan debt. Read the full story here.
Peddling Relief, Firms Put Debtors in Deeper Hole
One of the most destructive financial scams that people can fall prey to is for Profit Debt Collectors. In a New York Times article "Peddling Relief, Firms Put Debtors in Deeper Hole", Debt settlement companies are profiled. Download the PDF here. See the video here.
Biggest Defaulters on Mortgages Are the Rich
This article explains how the wealthy have lost their homes at a higher rate than the rest of the US population.
Download the PDF here.
Mass Wins 102 Million in Subprime Loan Case
Attorney General Martha Coakley has won a $102 million settlement from Wall Street's Morgan Stanley & Co., money that will help more than 1,000 Massachusetts homeowners who are in foreclosure or saddle with unwieldy subprime mortgages. Read the full story here.
A Matter of Trust: Connecting Consumer Protections and Financial Reform
Elizabeth Warren, Chair of the TARP Congressional Oversight Panel and Harvard Law Professor, was the featured speaker at this event. Professor Warren outlined what she sees as the necessary components of an effective consumer financial protection regulation reform and then discussed these and related issues with journalist David Corn of Mother Jones. See video here.
Check out the author of the new book "Broke, USA. How the Working Poor Became Big Business," Gary Rivlin, in an interview conducted with the New America Foundation. See coverage here.