| Volume 124 Number 4 |
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The People’s Lawyer’s Tip of the Day
Making the minimum payment on your credit card can cost you. If you have a $3,000 balance at 18% APR, paying the minimum will take 431 months to pay off and cost over $7,000 in interest. Click here to calculate the real cost of your credit cards. Click here for more.
Consumer Credit Slowed in April Amid Slow Job Growth
In April, consumers slowed their borrowing after increasing their debt levels by a record amount in March. On Tuesday, the Federal Reserve stated that total borrowing increased by $13.4 billion in April. That’s down from a revised March increase of $28.4 billion, which had been the largest monthly increase on record. April’s relatively lower increase in revolving credit suggests consumers may be hesitant to take on more credit card debt amid economic uncertainty. A weaker-than-expected jobs report showing only 38,000 jobs added in May has raised concerns that the economy hasn't recovered. Consistent job creation had been a significant factor encouraging the home and car buying that had contributed to economic growth in recent years. Click here for more.
Your Money
HBO's Last Week Tonight host John Oliver recently bought $15 million of medical debt and then forgave it for a segment on his show about debt collection. However, cancellation of debt could be taxable for the debtor. After a debt is canceled, the creditor may send you a Form 1099-C, Cancellation of Debt, showing the amount of cancellation of debt and the date of cancellation. If you received a Form 1099-C showing incorrect information, contact the creditor to make corrections. For example, if the creditor is continuing to try to collect the debt after sending you a Form 1099-C, the creditor may not have canceled the debt and and you may not have income from a canceled debt. Click here for more.
For the Lawyers
Manifest disregard is not grounds for vacating an arbitration award under the Texas Arbitration Act. The Texas Supreme Court held that the enumerated grounds for vacatur delineated in the Texas Arbitration Act are exclusive. Therefore, manifest disregard of the law is not grounds for vacating an award under the TAA. Hoskins v. Hoskins (Tex. Sup. Ct). Click here for more.