| Volume 129 Number 6 |
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The People’s Lawyer’s Tip of the Day
The opportunities kids have to socialize online are increasing and with it comes risks. Adults can help reduce the risks by talking to kids about making safe and responsible decisions. The Federal Trade Commission has more information on how to protect your kids when they go online. Click here for more.
Consumer Confidence Improves, According to Study
Consumer sentiment improved earlier this month after dropping to a two-year low in October, according to the University of Michigan's monthly survey. Consumers had a stronger outlook on the economy. However, the data for this report was collected before the presidential election. In recent months, some consumers said uncertainty over who would become president made them anxious about the economy. Click here for more.
Your Money
A new home-loan refinance program allows borrowers to trade student loans for mortgage debt at low interest rates. But the move carries risks for some borrowers. The cash-out refinance program, the Student Loan Payoff ReFi, is offered by the nonbank lender SoFi and by government-backed Fannie Mae. Under the program, homeowners who have student loans — or home-owning parents who co-signed student loans for their children — can refinance their mortgage and take out additional home equity as cash. SoFi pays off the student debt with the extra cash and the borrower is left with a new, larger mortgage, but at a lower interest rate. Consumer advocates caution that the lender is able to offer a lower rate on the new, refinanced mortgage because unlike student debt, it is secured by collateral, your house. If you default on the mortgage, the lender ultimately has the right to foreclose on the home. Click here for more.
For the Lawyers
HOA fine is debt for purposes of Fair Debt Collection Practices Act. Plaintiffs filed suit against defendants, alleging that the five letters sent to them between May 16 and December 13, 2013 violated the Fair Debt Collection Practices Act (FDCPA). The district court granted summary judgment to defendants. The Eleventh Circuit reversed. The court concluded that the district court erred in concluding that the HOA fine at issue is not a debt for FCCPA purposes and granting summary judgment on that basis. Agrelo v. The Meloni Law Firm (11th Cir. 2016). Click here for more.