Star Tribune story on lack of judicial oversight for garnishment process
September 2, 2010 by Todd Murray · Leave a Comment
Continuing its excellent “Hounded” series, the Star Tribune ran another story last weekend about the gaps in judicial oversight for the bank and wage garnishment process in Minnesota. The story points out that Minnesota law authorizes garnishments before the debt collector’s lawsuit has even been filed with a court. And even when the debt collector does file the lawsuit with the court before garnishment (and most do), the garnishment process happens largely without any judicial supervision. Only when the debt claims an exemption and requests a court hearing, does the court get involved. The piece tells the story of a couple of consumers that have had a particularly difficult time navigating the exemption process.
After reading the story, I’m even more convinced that Minnesota needs to prohibit any garnishments before filing, and allow pre-judgment garnishment only with a court order. I’ve written about it in the past, but I’d also like to see the existing exemption process blown up, and a new process put in place that prevents creditors from freezing exempt money, even if it’s only for a few days. And as the story points out, states like North Carolina and Texas have created exemptions for money earmarked for reasonable living expenses. But in an allegedly progressive state like Minnesota, there’s no such protection–creditors can garnish money that you’ve earmarked for your basic living expenses, leaving you out of luck.
Justice denied as debt seizures soar | Star Tribune | September 1, 2010
Minnesota debt collector’s license revoked for not paying its clients
August 24, 2010 by Todd Murray · Leave a Comment
Oh, the irony. A Minnesota debt collector, Accounts Receivable Control Inc., had its debt collection license revoked after a state audit found that it owed nearly $200,000 to its clients, even after it had collected that money from Minnesota consumers. The debt collection agency has been sold to another owner who agreed to pay its clients and take steps to see that this doesn’t happen again.
Debt collector loses license over his debts | Star Tribune | August 24, 2010
WSJ: Consumers now have more student loan debt than credit card debt
August 11, 2010 by Todd Murray · Leave a Comment
According to the Wall Street Journal, Americans owe approximately $826.5 million in revolving credit debt, which is mostly made up of credit card debt. But the outstanding student loans–both public and private–total approximately $829.785 billion. According to experts quoted in the story, there is $605.6 billion in outstanding federal student loans and $167.8 billion in outstanding private student loans. It’s estimated that $300 billion in federal student loan debts have been incurred in the last four years.
The story attributes this shift to Americans paying down their credit card debts, which usually carry higher interest rates than student loans, as well as the rising costs of higher-education.
Student-Loan Debt Surpasses Credit Cards | The Wall Street Journal | August 9, 2010
Highlights of the financial reform bill
July 20, 2010 by Todd Murray · Leave a Comment
If you’re like me, you don’t have the time or desire to read the entire 2,300 pages of the recently passed financial reform bill. Never fear, the Huffington Post has you covered with an informative summary (with pictures!). Here’s the link:
The Highlights of the Financial Reform Bill (Photos) | Huffington Post | July 16, 2010
