Bruce Ralston; Memphis Consumer Lawyer

02/16/2024

12/15/2023

And bankruptcy doesn't cure this kind of debt.

The order came after Rudy Giuliani spread baseless lies that two Georgia election workers had tried to steal a victory from Donald Trump in 2020.

03/09/2023

Don’t get tricked into paying to file your taxes this year. Here’s how to find the truly free filing options offered by the IRS Free File program.

01/15/2023

If you or anyone that you know is having problems with a landlord, check this out on Tuesday evening. While you're there, don't miss the Eviction exhibit on the first floor.

Join MLK50: Justice Through Journalism to learn about resources for renters and work to build an equitable housing system in Memphis.

01/12/2023

I hate to hear that Annual Credit Report-dot-com is in any way connected to this scam. As I have said 1,000 times, ACR is the one and only truly source for free credit reports. To be clear, they are not directly responsible for Experian's mistake. But it could still hurt their image. Although when you think about it, ACR-dot-com is actually managed by the three major credit reporting agencies, I guess it kind of comes full circle.

January 9, 2023 61 Comments Identity thieves have been exploiting a glaring security weakness in the website of Experian, one of the big three consumer credit reporting bureaus. Normally, Experian requires that those seeking a copy of their credit report successfully answer several multiple choice q...

12/10/2022

This documentary/expose' about the student loan debt crisis starts at 10:00 p.m. EST (9:00 p.m. Central) on MSNBC. This teaser suggests that they won't be pulling any punches.
https://www.msnbc.com/11th-hour/watch/-loan-wolves-documentary-investigates-student-debt-156913221547

10/21/2022

A reporter posted a question on a private message board about refinancing and/or consolidating federal student loans. The first part of the question was "What does it mean to refinance a student loan?" Here is my response:
That first question is the right starting point. Before opening the door to this conversation you have to lay a foundation and define some terms. Since 95% of all student loans are federal, in most cases when this question comes up it means that someone with federal student loans is considering borrowing private money to pay off federal student loans. While it is possible for that arrangement to turn out well, on the front end that is almost never a good idea. IF you are getting a considerably lower interest rate, and IF you can be 100% certain of always being able to make all of the payments on time, for however many years that may turn out to be, THEN it's the right move. But how many of us can ever be certain of making payments for the next few years, much less then next 20, 30, or more? It's simply not realistic. From a gambler's perspective, it's a bad bet.
With federal student loans there is almost always a back door out of a bad situation. Not so with private loans (whether they were always private, or refinanced, as contemplated here).
Relevant maxim #1: Friends don't let friends take out private student loans.
Now, if what you're really talking about is consolidating federal loans, that's another story. In the federal system "consolidation" is really exactly the same thing as refinancing, with one huge distinction. Rather than borrowing private money, you're taking out a new loan from the Dept of Education to pay off existing federal loans. That's not always necessary, but (A) in most cases it is the fastest way to get out of default, and (B) in many cases it's the first step toward getting into a better (i.e. "lower") payment plan.
So refinancing a federal loan using private money is almost always a mistake. But depending on circumstances, "consolidation" (to use the confusing official federal term) can be a life-saver, a wise move, or both.
Another point in favor of federal consolidation is that there is no credit check or approval requirement. If consolidation is an option for you, then you just fill out the form and you're done. (Not everyone can consolidate, but most can, especially right now, while "The Pause" is still in effect.) Conversely, a private loan is exactly that. Private. Not only will you have to qualify credit-wise, but they will do their damnedest to get you to persuade someone to co-sign the loan with you.
Relevant Maxim #2: With the possible exception of your spouse, don't ever co-sign anything for anyone. Never. Just don't.
I hope this helps. Let me know if you have any other thoughts or questions.
Bruce Ralston
Memphis Consumer Lawyer

05/19/2022

When I tell people that one part of my practice is helping deal with student loan debt, many assume that those clients are in their 20s or 30s. Nope. The majority of my student loan clients are at least 50, and many are in their 60s or 70s. I haven't actually had anyone that hit the 100 year mark yet, but I have seen a couple in their 80s.

These are people who:
A. Went back to grad school themselves; or
B. Signed for their children's student loans (often more than one child, and those "children" are now in their 30s); or
C. Both. That's where you can really rack up the big numbers.

We can't often actually get rid of student loan debt, but we can usually make it manageable, and many of my clients who owe $100,000 or more (sometimes a LOT more) have payments of less than $100 per month. Some have payments that are literally zero.

The moratorium on collection of federal student loans ends on Aug. 31, and it takes a couple of months for some of these processes to play out, so now is the time to get things under control. My fee for a comprehensive student loan analysis is only $199. After that you will know everything that you need to know about your student loans. Sometimes that's all you really need.

05/12/2022

Some rare good news about credit reports:

The three nationwide credit reporting agencies - Equifax, Experian and TransUnion - have agreed to three important changes to reporting medical collection accounts.
• Paid medical collection debt will no longer be included on consumer credit reports, as of July 1, 2022.
• The time period before unpaid medical collection debt will appear on a consumer’s report will be increased from six months to one year, also effective July 1, 2022. This change gives consumers more time to work with insurance and/or healthcare providers to address medical collection debt before it appears on credit reports.
• Medical debt collection accounts under at least $500 will no longer be included on consumer credit reports. This goes into effect the first half of 2023.
These significant changes to medical collection debt reporting support consumers faced with unexpected medical bills.

04/19/2022

For almost 7 years now I have been helping people deal with student loan debt in various ways, and I have spoken on that topic at dozens of seminars and business gatherings. One of the first things that I mention at those seminars, as well as to clients with federal student loan issues, is that the biggest problem is with the private companies that have contracted with the Dept of Education to service these loans. Until very recently, there have been four primary servicers. My nicknames for them are Bad, Worse, Worst and Satan.
On paper the servicers' primary function is to help borrowers manage their loans, but in far too many cases they acted in their own best interests rather than that of their customers. Two of the larger categories of transgression are putting borrowers into forbearance rather than Income-Driven Repayment, and putting defaulted accounts into their own "rehabilitation" programs rather than consolidating their loans and setting up a new payment plan. And even when they did put someone into IDR, quite often they don't consider all the variables so that borrower would not get put into the best plan for them, and/or their monthly payments would be higher than necessary. Quite simply, these servicers were more interested in their own bottom lines than they were in giving people honest, helpful solutions.
And don't even get me started on Public Service Loan Forgiveness!
Now the Dept of Education has finally put the servicers' collective feet to the fire. They are forcing them to do the right thing, and as a direct result "Worst" and "Satan" are literally getting out of the business. Also people who were improperly denied Public Service Loan Forgiveness are being given the opportunity to go back in time and start over. This breaking news article suggests that even more the servicers' past wrongs will be righted.
Stay tuned for further developments.

The U.S. Department of Education unveils a plan to help millions of borrowers who have been hurt and held back by its troubled income-driven repayment plans.