News
Reduction in Regulation/Supervision/Oversight of “Payday” Loans
Credit & Collection e-newsletter of 12/23/25 reports reduction in regulation/supervision/oversight of “payday” loans (also known as “paycheck loans”, and “payday advance” loans). That reduction in regulation/supervision/oversight of “payday” loans creates a BIG RISK to people taking out such “payday advance” loans, to survive until their next paycheck, because the loan documents will not be clear regarding what interest rate/fees the lenders are charging on such loans: Here is the article: The CFPB has issued a new advisory opinion saying that most “earned wage” or paycheck advance products are not covered by the federal Truth in Lending Act (TILA), meaning many…
Student Loan Forgiveness
American Bankruptcy Institute (“ABI”) article reports that a Court filing alleges that the US Education Department is Moving Slowly on Student Loan Forgiveness, and has a large backlog of requests from student loan borrowers for income-driven repayment plans, to repay the borrowers US Dept of Education school loans: Plan Backlog The Trump administration continues to move slowly in processing a massive backlog of applications from hundreds of thousands of student loan borrowers seeking debt forgiveness or an affordable repayment plan, a new court filing shows, CNBC.com reported. As of the end of November, 802,730 requests to transfer into an income-driven…
American Bankruptcy Institute 10/9/25 e-newsletter reports Personal Bankruptcy Filings Soar Amid ‘Mounting Financial Pressure’
The number of individuals filing for bankruptcy has soared thus far in 2025, reflecting growing financial pressures and pessimism among Americans about their economic security, Newsweek reported. According to a report from the ABI, based on figures from data and analytics platform Epiq AACER, there were 249,152 individual chapter 7 bankruptcy filings — the most common type of personal bankruptcy — during the first nine months of 2025. This represents a 15 percent increase over the 216,773 filed in the same period last year. Epiq AACER linked the rise to the “mounting financial pressure” faced by Americans in 2025, reflected…
Many Banks are suffering Multi-Million Dollar Loses Due to Auto Lender Tricolor filing Chapter 7 Bankruptcy
Credit & Collection e-newsletter of 9/11/25 reports that Many Banks are suffering Multi-Million Dollar Loses Due to Auto Lender Tricolor filing Chapter 7 Bankruptcy Key Insight: Tricolor’s business model differed from other auto finance companies, which could have contributed to its problems. What’s at Stake: It’s unclear how many more lenders may take losses due to connections with Tricolor, or on subprime auto loans. Forward Look: A former Tricolor lawyer said the federal government is investigating the situation for alleged fraud. UPDATE: This story includes information from the FBI’s response to a request for comment. A subprime auto lender’s bankruptcy…
Ramona D. Elliott to serve as Acting Director of the Justice Department’s U.S. Trustee Program (USTP)
American Bankruptcy Institute reports, that on 8/29/25, Attorney General Pamela Bondi has selected Ramona D. Elliott to serve as Acting Director of the Justice Department’s U.S. Trustee Program (USTP), the Justice Department announced today. Elliott has 31 years of federal service, the majority of which has been with the USTP. Since 2011, she has served as Deputy Director and General Counsel for the Executive Office for U.S. Trustees in Washington, D.C. As the USTP’s chief legal officer, she has overseen the formulation of the USTP’s national legal policies in consumer and business cases as well as litigation strategies in significant…
U.S. Sees Highest Large-Company Bankruptcies In 15 Years With 446 Filings:
Credit & Collection e-newsletter of 8/21/25 reports that the United States has recorded 446 large company bankruptcy filings in the first seven months of 2025, the highest year-to-date total in 15 years. The tally, compiled by the Kobeissi Letter and S&P Global Market Intelligence, represents a 12% increase above levels seen during the 2020 pandemic year. Per the Kobeissi Letter, the number of bankruptcies has already surpassed full-year totals for 2021 and 2022, when 405 and 373 firms, respectively, filed for court protection. More data shows that July alone accounted for 71 bankruptcies, up from 66 in June, and the…
Americans are carrying a record amount of household debt
FOX Business’ Gerri Willis reports on the alleged ‘out-of-control’ costs associated with going back to school and how much families may expect to spend this year. Americans are increasingly turning to their credit cards to cover everyday expenses, with debt hitting a new record high at the end of June, according to a New York Federal Reserve report published Tuesday.
Americans Owe A Record $1.14 Trillion Dollars In Credit Card Debt [as reported in 8/15/25 Credit & Collection e-newletter]
In the three-month period from April to June, total credit card debt rose to $1.14 trillion, an increase of $27 billion, or about 1%, from the previous quarter, according to the report. It marks the highest level on record in Fed data dating back to 2003. Credit card delinquencies continued to rise from their pre-pandemic levels in the second quarter. As of June, about 9.1% of outstanding credit card debt was in some stage of delinquency, up from 8.5% the previous quarter. The rise in credit card usage and debt is particularly concerning because interest rates are astronomically high right…
National Association of Consumer Bankruptcy Attorneys (“NACBA”) Applauds Introduction of H.R. 4444 (Titled: “The Student Loan Bankruptcy Improvement Act of 2025”) in the US House of Representatives
7/18/25 National Association of Consumer Bankruptcy Attorneys (“NACBA”) Applauds Introduction of H.R. 4444 (Titled: “The Student Loan Bankruptcy Improvement Act of 2025”) in the US House of Representatives, which proposes to make more bankruptcy debtors eligible to discharge their student loans in bankruptcy: Washington, D.C. — The National Association of Consumer Bankruptcy Attorneys (NACBA) proudly announces its strong support for H.R. 4444, the Student Loan Bankruptcy Improvement Act of 2025, introduced by Congressman J. Luis Correa (CA-46). This vital legislation takes long-overdue action to restore fairness and access to justice for millions of Americans burdened by student loan debt. For…
U.S. Recurring Jobless Claims Jump to Highest Since End of 2021
Recurring applications for U.S. unemployment benefits rose to the highest level since the end of 2021, adding to evidence that it is taking unemployed Americans longer to find a new job, Bloomberg News reported. Continuing claims, a proxy for the number of people receiving benefits, advanced to 1.96 million in the week ended May 31, according to Labor Department data released today. Meanwhile, a measure of new filings that smooths volatility climbed to its highest level since August 2023. The spike in recurring claims coincides with a slowdown in hiring, suggesting that out-of-work people are struggling to find employment. However,…