Northwest Consumer Law Center

NWCLC Submits Amicus Brief Supporting Truth in Consumer Marketing

Mon, 09 Jun 2025 17:40:00 GMT

Northwest Consumer Law Center (NWCLC), National Association of Consumer Advocates (NACA), and National Consumer Law Center (NCLC) joined together to submit an amicus brief in Shellenberger v. AIG Warrantyguard at the Ninth Circuit Court of Appeals. This amicus brief supports a consumer appeal currently before the Ninth Circuit. The case challenges a ruling by the U.S. District Court in Washington that allows companies to make misleading claims in marketing materials, so long as they include a generic disclaimer referring consumers to terms and conditions online.

At the center of the appeal is a senior citizen who purchased a KitchenAid service plan after receiving a marketing letter promising full coverage with no out-of-pocket costs. When her dishwasher failed, the company denied repair service and instead offered a discounted “buyout,” then prematurely canceled her three-year plan—actions based on undisclosed terms not included in the marketing letter.

The district court ruled that the company’s disclaimer—“Subject to limitations. See our website for full terms and conditions.”—was sufficient to shield it from liability under Washington’s Consumer Protection Act (CPA). The amicus brief argues this decision sets a dangerous precedent by weakening state consumer protections and encouraging deceptive marketing practices.

The brief highlights how Washington law offers strong safeguards against unfair and deceptive business conduct. It urges the appellate court to reverse the lower court’s decision and uphold the right of consumers to rely on the truthfulness of marketing representations.

Read the brief here .

The post NWCLC Submits Amicus Brief Supporting Truth in Consumer Marketing appeared first on Northwest Consumer Law Center .

Posted in Advocacy , Amicus-Briefs , Uncategorized

Navigating Debt Collection: Unraveling the Impact on Credit Scores

Fri, 02 Feb 2024 18:28:00 GMT

Credit scores and Debt Collection. The two are often linked together as they are a significantly impact individuals’ financial well-being. Understanding this connection is crucial for anyone navigating the challenges of debt collection. In this blog post, we’ll be discussing the relationship between debt collection and credit scores, learning more about the impact and seeing where one can go from there.

Understanding the Link: Debt Collection and Credit Scores

At the most basic definition, a credit score is a numerical representation of an individual’s creditworthiness. It reflects their credit history, including how they’ve managed credit accounts, paid bills, and handled debts. Debt collection enters the stage when an individual is unable to meet their financial obligations, leading creditors or collection agencies to pursue the owed amount.

When an account goes into collections, it becomes a red mark on the credit report. The credit report is a critical document that influences the credit score. Timely payments and responsible credit management contribute positively to the score, while delinquencies, defaults, and accounts in collections have the opposite effect.

The Impact of Debt Collection on Credit Scores

The impact of debt collection on credit scores can be profound. As soon as an account is sent to collections, the credit score takes a hit. The severity of the impact depends on factors such as the amount of debt, the type of debt, and the individual’s overall credit history.

Medical debts, credit card debts, and other financial obligations can all find their way into collections, casting a shadow over the credit report. This, in turn, makes it more challenging for individuals to secure favorable terms on new credit, such as loans or credit cards. A lower credit score may result in higher interest rates or even outright rejections from lenders.

Strategies for Rebuilding Credit After Debt Collection

While the impact of debt collection on credit scores is significant, it’s not irreversible. Individuals can take proactive steps to rebuild their credit:

Payment Plans and Settlements: Working with creditors or collection agencies to establish manageable payment plans or settlements can demonstrate a commitment to resolving debts.
Secured Credit Cards: Obtaining a secured credit card allows individuals to rebuild their credit by making regular, on-time payments. These cards are often more accessible to those with lower credit scores.
Credit Counseling: Seeking guidance from credit counseling agencies can provide valuable insights into managing debts and improving financial habits.
Credit Monitoring: Regularly monitoring credit reports allows individuals to track progress, identify errors, and address issues promptly.

The Road Ahead: Navigating the Intersection of Debt Collection and Credit Scores

As individuals navigate the often challenging terrain of debt collection, understanding the impact on credit scores is a crucial aspect of financial literacy. By proactively managing debts, seeking solutions with creditors, and taking steps to rebuild credit, individuals can chart a course toward financial recovery. Education and empowerment are key allies in this journey, helping individuals make informed decisions that lay the foundation for a stronger financial future.

The post Navigating Debt Collection: Unraveling the Impact on Credit Scores appeared first on Northwest Consumer Law Center .

Posted in Debt Defense

Dealing With Debt Collection

Fri, 02 Feb 2024 09:31:00 GMT

Dealing with debt collection can be a daunting experience, causing stress and anxiety for individuals already facing financial challenges. This year, debt collection cases were our highest margin. We understand the complexities of this process and are here to guide you through the maze of debt collection. In this blog post we’ll explore the intricacies of debt collection, your rights as a consumer, and the resources available to help you navigate this challenging terrain.

Understanding Debt Collection:

Debt collection is the process creditors use to recover funds that are past due or in default. This can involve anything from credit card debt to medical bills, personal loans, or even outstanding utility bills. It’s essential to recognize that you have rights as a consumer, and debt collectors must adhere to strict regulations outlined in the Fair Debt Collection Practices Act (FDCPA).

Your Rights as a Consumer:

The FDCPA safeguards consumers from abusive and unfair practices by debt collectors. Some key rights you have include:

Protection Against Harassment: Debt collectors cannot engage in harassing behavior, such as frequent and threatening calls, the use of profanity, or false representations.

Verification of Debt: You have the right to request verification of the debt in writing. Debt collectors must provide information about the amount owed, the creditor, and your rights within five days of initial contact.

Cease and Desist Communication: If the communication becomes overwhelming, you have the right to request that the debt collector cease and desist further communication. However, this won’t make the debt disappear, and the collector may pursue legal avenues.

Dispute the Debt: If you believe there are errors in the debt or if you dispute it, you have the right to formally dispute the debt with the collector. They must then cease collection efforts until they provide verification.

Legal Action: Debt collectors cannot threaten legal action unless they genuinely intend to pursue it. If they do, you have the right to be notified.

Navigating the Debt Collection Process:

Review the Debt: Start by carefully reviewing the details of the debt. Ensure it’s accurate, and if you have any doubts, request verification from the debt collector.

Understand Your Budget: Assess your financial situation and create a realistic budget. This will help you determine what you can afford to pay toward the debt.

Communicate with Collectors: Open communication with debt collectors is crucial. If you’re facing financial hardship, explain your situation, and discuss potential solutions such as a revised payment plan.

Consider Debt Settlement: In some cases, debt settlement may be an option. This involves negotiating with the creditor to pay a reduced amount to settle the debt.

Seek Legal Advice: If you’re facing challenges in dealing with debt collectors, it’s advisable to seek legal advice. We can provide guidance and support in understanding your rights and exploring possible legal avenues, feel free to email us with any questions or concerns you may have.

Conclusion:

Dealing with debt collection can be overwhelming, but it’s essential to know your rights and explore available resources. At NWCLC, we are committed to empowering consumers facing debt-related challenges. By understanding the intricacies of debt collection and taking proactive steps, you can navigate this complex landscape with confidence and work towards achieving financial stability. Remember, you’re not alone, and help is available to guide you through every step of the process.

The post Dealing With Debt Collection appeared first on Northwest Consumer Law Center .

Posted in Debt Defense , Uncategorized

When to Consider Bankruptcy

Thu, 14 Dec 2023 17:50:00 GMT

Facing financial challenges can be extremely overwhelming, especially if you’re attempting to make progress but the debts just keep piling up. Just know that many have been where you are, and exploring the option of bankruptcy could be a crucial step toward a fresh financial start.

Who should be considering Bankruptcy?

There are many reasons why people file for bankruptcy, from job loss, medical bills, divorce, or other life situations that put your finances at risk. If in these situations you are in danger of losing your home or having to use credit cards as a last resort to pay your bills (or other credit cards) then you should consider bankruptcy. It can not only secure your assets but also save you from the nagging of creditors who may start to grab at assets and take money from your bank accounts.

There are two types of Bankruptcy; Chapter 7 and Chapter 13. Chapter 7 is for individuals and Chapter 13 is aimed more toward small businesses and in some individual cases.

Chapter 7 Bankruptcy

Chapter 7 bankruptcy is the most common type of bankruptcy that people file, often referred to as a “straight bankruptcy” or “liquidation” It allows individuals to sell their assets under the court’s supervision, in a chapter 7 bankruptcy almost all the debt is taken care of. Some personal items and property are exempt from bankruptcy proceedings. These generally fall under the heading “necessary to live.” Very likely, a person’s car or house will be exempt along with personal items and electronics needed for their job. Around 90% of Chapter 7 filers stay in their homes. Although most debts can be taken care of in Chapter 7. There are a few that can’t be discharged. “Taxes, student loans, secured debt, child support or alimony are at the top of the list of debts that usually cannot be erased through bankruptcy.”

A Chapter 7 bankruptcy is usually completed or discharged in four to six months.

Chapter 13 Bankruptcy

Chapter 13 bankruptcy is aimed at small businesses and in some individual cases, it results in a court-approved plan for you to repay all or part of your debts in a period of three to five years. Some debts might be discharged as well. However, in Chapter 13, you would hand over your accounts to the court for them to determine how much you will pay your creditors over your term. You will also be living on a very strict income and any disposable income will be used to pay off your debts. The main advantage of Chapter 13 is that it keeps home foreclosure off the table as Chapter 13 stops foreclosure proceedings.

Thinking about filing for bankruptcy? Attend one of our free bankruptcy clinics and get all of your bankruptcy questions answered.

The post When to Consider Bankruptcy appeared first on Northwest Consumer Law Center .

Posted in Uncategorized

Life After Bankruptcy

Thu, 14 Dec 2023 17:48:00 GMT

You got your filing done for bankruptcy, went over the specifics with the court, and completed all the paperwork and payments. Or you might be even in the process of deciding whether or not you want to file for bankruptcy, either way, it’s a good idea to think ahead and visualize your life after your case has been settled. So, after bankruptcy, what’s next?

Before we begin, if you’re thinking about filing for bankruptcy read our blog post “Thinking about filing for bankruptcy” to learn more about the two types. Now a Chapter 7 bankruptcy will stay on your credit report for up to 10 years while Chapter 13 stays for seven years. With this, getting a loan may be difficult for a while. There are the harder challenges with getting credit for future cars or a home.

Moving On After Filing

Now that you finished making your last payment, it’s time to build yourself a solid foundation. First, make sure to save all your paperwork, this is important as in the future you might be asked for copies of your bankruptcy case by lenders if you apply for a loan. Also, if a debt collector comes back and tries to collect a debt that was discharged during your bankruptcy then you also have that documentation.

Rebuild Your Credit

Pay your bills on time, this is one of the best ways you can rebuild your credit. Open up a secure credit card (if you can) to start rebuilding your credit. Make sure to monitor your credit report regularly, you can get a free credit report as well from AnnualCreditReport.com and compare activity from all three of the main credit bureaus — Equifax, Experian, and TransUnion. Keep your credit utilization ratio low and know that it’s very possible to see your credit score recover after bankruptcy. A report” found that among people who had filed for bankruptcy and then sought loan offers on LendingTree the following year, 56% already had credit scores of 640 or higher.”

Save, Save Save.

Do yourself a favor and start to save money, the last thing you want is to repeat what you just went through. Open up a savings account to reestablish good financial habits, most importantly you’ll have a way to access these funds in the case of an emergency. A good rule of thumb is to Aim for three to 6 months’ worth of living expenses. Regularly review your financial situation, avoid impulse buying, and adjust your plan as needed.

The good news is that many banks offer second-chance programs for those who went through bankruptcy, ensuring a positive balance in your account will show employers and creditors your reliable cash flow.

Maintain Your Home and Job

After Bankruptcy, it’s important to maintain your home and job to show creditors that you are reliable as they would consider your income and employment history to know if you’ll be able to repay your loan.

In the end, take some time to reflect on your spending habits to ensure long-term financial stability.

The post Life After Bankruptcy appeared first on Northwest Consumer Law Center .

Posted in Uncategorized

How to Buy a Used Car: Best Practices and Tips

Thu, 02 Nov 2023 20:49:00 GMT

Buying used vehicles can have you end up saving a lot of money. After all, a car’s value decreases as soon as you start driving it. Whether it be from a dealership or someone’s garage. There are many points you need to look out for when you start your search, from selecting the vehicle to verifying the details, in this blog post we’ll go over the essential tips for searching for a used car.

Get a Budget & and do your Research!

First things first: figuring out how much you can comfortably afford and sticking to that budget, taking into account not only the purchase price but also recurring costs like insurance, maintenance, and gas. Do your research on the kind of vehicle that you want (within budget), for value, you can check out Kelly Bluebook, CarGurus, and Google for basic information and reviews.

Get a Vehicle History Report

Once you have your vehicles in mind, whether they be from a private seller or a used car dealership always make sure to verify the VIN you can do so by going to NICB.org/vincheck or carsforsale.com . these reports can reveal important information about past accidents, title status, and more. If the deal seems off in any way it’s better to walk away than to risk being a victim of Auto Fraud.

Inspect and Test Drive

When you find a car that meets your criteria, inspect it thoroughly. Pay attention to signs of wear and tear, check for rust or frame damage, and ensure all features and functions work as expected. A test drive is essential to evaluate how the car handles on the road. It’s also helpful to bring a second set of eyes with you so, bring a friend as well or even better, a mechanic for a pre-purchase inspection to make sure you’re not missing any hidden issues and everything looks good to go.

Review the Paperwork

Carefully review all paperwork, including the title, bill of sale, and any warranty or “as-is” disclosures. Ensure everything is in order and that you understand the terms don’t be afraid to ask questions and again, if anything seems off it’s better to walk away. After your purchase, maintain the car regularly to extend its lifespan and protect your new asset. Address any issues as soon as you’re able.

Buying a used car can be a rewarding experience when approached thoughtfully. With the right preparation and research, you can find a used vehicle that not only meets your needs but also delivers reliable performance for years to come. Happy car shopping!

The post How to Buy a Used Car: Best Practices and Tips appeared first on Northwest Consumer Law Center .

Posted in Auto Fraud

Detecting Odometer Fraud

Thu, 02 Nov 2023 04:29:00 GMT

Earlier this year, Washington State was ranked 17th in the nation for odometer fraud, facing a reported 10% rise odometer fraud incidents. According to the CARFAX report, there were an estimated 30,600 vehicles in our state that have a rolled-back odometer. This scam can cost car buyers thousands of dollars as exemplified by the price of two identical cars, one with 150,000 miles and the other with 50,000 miles was found to be a $6,000 difference . Unfortunately, this scam can target anyone from small business owners to low-income individuals.

How easy is it to change the number on the reader? As it turns out, for only $300, a scammer can remove thousands of miles of a car’s history in a matter of seconds. So, if you’re considering buying a used car and want to make sure you don’t fall victim to this practice, here’s what you need to look out for. (Tips referenced from https://www.kbb.com/car-news/5-tips-on-how-to-protect-against-odometer-fraud/ )

Review the Title

If you are looking to buy from a private seller (Craigslist, Facebook Marketplace, etc.), make sure that you first look at the title and compare the mileage on the title with the mileage with the odometer. If it seems obscured or not easy to see, then it’s probably a sign that it has been tampered with.

Double Check Maintenance Records.

Digital odometers can now be altered to display lower or false mileage as easily as older models. One way you can check for odometer fraud is to compare the mileage on the odometer with the mileage indicated on the vehicle’s maintenance/inspection records. Also, you can look for oil change and maintenance stickers which may have odometer notations on them. These can typically be found on windows or door frames, in the glove box, or under the hood.

Examine the Tires

If the odometer on your car shows 20,000 or less, it will likely have the original tires. Excessive wear is another indication that the mileage may not be correct.

Obvious Wear & Tear

Use your common sense to closely inspect the pedals, edges on the gas, brake, and clutch pedals. Worn pedals is an indication of a high-mileage vehicle. If you aren’t sure, bring a friend for a second opinion or even better, ask if you can take the car to your local mechanic. Overall vehicle wear including brakes, wipers, and other moving parts should appear consistent with and appropriate for the number of miles shown on the odometer.

Request a Vehicle History Report.

While not always 100% accurate, these reports should be looked at closely to check for odometer discrepancies in the vehicle’s history. If the seller does not have a vehicle history report, use the car’s VIN to order a vehicle history report online.

Check the Car’s Door Frame.

If an odometer is repaired or replaced and the odometer is incapable of registering the same mileage as before the repair or replacement, the odometer should be adjusted to read zero and a notice must be attached to the door frame specifying the mileage prior to replacement.

In sum, if it sounds too good to be true, it probably is. Mileage is one of the leading factors in a car’s value, and a difference in mileage will only increase with the costs of maintaining a high mileage vehicle. Odometer fraud is illegal in all 50 states with a recent regulation requiring the reporting of the mileage in the title if the car is less than 20 years old. If you or someone you know has experienced odometer fraud, don’t hesitate to contact us and apply for legal assistance. We’re here to guide Washington consumers and advocate for your rights.

The post Detecting Odometer Fraud appeared first on Northwest Consumer Law Center .

Posted in Auto Fraud

Best Tips for Restarting Federal Student Loan Payments in October.

Fri, 13 Oct 2023 16:37:00 GMT

It’s been over three years since many Americans have been required to make payments on their federal student loan debt. Repaying any debt can be overwhelming, and the complex federal student loan system can only add confusion to the process. Here are our best tips for restarting your federal student loan payments in October:

Find the Best Repayment Plan For You:

First, check out our blog post about the different federal student loan plans repayment and learn more about what plan works best for your financial goals.

Find the Best Repayment Plan For You:

First, check out our blog post about the different federal student loan plans repayment and learn more about what plan works best for your financial goals.

Automate Your Payments:

Next, we recommend that you set up automatic payments. This ensures that you never miss a due date! You may also be offered a slight interest rate discount for setting up automatic payments. While the Department of Education is providing a 12-month grace period when repayments restart, we generally recommend restarting payments as soon as you are able to. This will not only help you avoid late fees in the future (after the grace period ends), but also knowing that the money is automatically deducted from your account can reduce your stress of remembering to make payments.

Find a Student Loan Partner:

With millions of Americans struggling with overwhelming student loan debt, you most likely know someone who also has student loans. Having someone to share your journey with can make a significant difference. If you feel like you’re struggling to stay motivated or facing financial hardship, don’t hesitate to seek help from a financial advisor or counselor. They can provide expert advice and tailored strategies to keep you on track.

Set Goals and Reward Yourself:

Decide on your goals for student loan repayment: whether that is paying off the loans as soon as possible, finding an affordable repayment plan, or working towards public interest loan forgiveness. Treat yourself when you hit specific milestones or achieve certain goals, because, after all, you deserve it!

Stay Informed:

Educate yourself about your student loans and repayment options. Understanding the impact of interest rates and how various repayment plans work can motivate you to pay off your loans faster or give you financial breathing room with a more affordable payment. Knowledge is power, and it can drive your determination. There are constantly new updates and developments being released in the student loan world.

Conclusion:

Remember that the journey to paying off student loans is a marathon, not a sprint. Your goal may be to pay off your debt as soon as possible, or to find a more affordable payment so that you can pay other expenses. Stay committed, celebrate your progress, and keep your eyes on the prize of financial freedom. And as always, be sure to follow us on our socials to get the latest news on student loans!

The post Best Tips for Restarting Federal Student Loan Payments in October. appeared first on Northwest Consumer Law Center .

Posted in Student Loans

Your Guide to Recent Student Loan Forgiveness Changes

Wed, 27 Sep 2023 22:50:00 GMT

By Christina Henry, NWCLC Board Member .

There have been many changes to assist with forgiveness for federal student loans in the last couple of years. The most important changes that anyone with loans, especially if you’re a public service worker or low-income should be aware of are as follows:

the American Rescue Plan (ARPA), passed by Congress provided for waiver of any taxable event for all student loan forgiveness through December 31, 2025
Universal Debt Cancellation: Possible $10,000 forgiveness if rulemaking through the Administrative Procedures Act is successful;
Payment pause per the CARES Act;
PSLF Waiver Fix – apply to older FFEL loans, other changes;
IDR Waiver to allow forbearance to count toward forgiveness;
Rollback of strict new regulations governing Borrower Defense to Repayment program enacted by Sec DeVos;
ED policies and Executive authority versus Congressional approval

Understanding ARPA

Under the ARPA, any taxable event includes both federal and private student loans. So, if you are eligible for one of the federal loan forgiveness programs and obtain forgiveness by December 31, 2025, any forgiven debt will not be taxed. Similarly, if you can negotiate a student loan debt for less than the amount owed or allegedly owed any forgiven amount will not be taxed. This tax change is significant and anyone who has private student loans with the ability to settle them for less than the amount owed should take advantage of this.

Critical Deadlines and the One-Time Adjustment

An important deadline for all borrowers is December 31, 2023. That is the deadline to consolidate all old loans into the federal program found at www.studentaid.gov . If you have an older loan, that was disbursed before 2010, you need to consolidate them NOW. Under old guidelines, if you changed IDR plans, you could lose months and years paid toward forgiveness programs. However, during the COVID pandemic, the rules changed for a brief period – until December 31, 2023. If you change plans or consolidate with the federal government, you will not suffer any loss of time in forgiveness. Except for any time in default or in school, the time will be counted toward forgiveness. This is called the One-Time Adjustment program and has led to the forgiveness of older loans that have been in repayment for 20 years or more. The counting starts from the first loan in repayment, i.e., undergrad loans, not graduate loan repayment if you have graduate loans. So, if you graduated from undergrad in 1994 or soon thereafter, you are probably one of the lucky few who will receive notice of total forgiveness of your federal loans. You should also note, that if you missed the deadline for the PSLF waiver last year, this One-Time Adjustment does almost the same thing and you can get the benefits of uncounted months in repayment. Lastly, if your loan is not totally forgiven, the One-Time Adjustment program will likely still count more payments toward forgiveness if you had any significant time in forbearance instead of repayment under an IDR plan.

The post Your Guide to Recent Student Loan Forgiveness Changes appeared first on Northwest Consumer Law Center .

Posted in Student Loans

Staying Motivated During Your Journey to Student Loan Repayment.

Mon, 25 Sep 2023 20:46:00 GMT

Paying back your student loans plays a big part in your financial health and future, the pause went to effect in 2020 and it’s three years we’re finally restarting payments again, if you’re unsure about the plans available to you check out our other blog post on the types of plans and how to find the right one for you here. Moving on, transitioning to making payments again (or for the first time) may be hard for a lot of us, so in this blog post, we’ll be sharing with you how to find the motivation and keep yourself in check to make those payments!

Automate Your Payments:

The first tip that we have is to set up automatic payments, doing this will ensure that you never miss a due date. And even though Biden has given a 12-month grace period during this time, (meaning borrowers will be shielded from the worst consequences of missed payments) it’s better to reinforce your commitment to repayment now, if you’re able to. This will not only help you avoid late fees in the future (after the grace period ends) but also knowing that the money is automatically deducted from your account can be a relief.

Find an Accountability Partner:

You most likely know someone who also has student loans (and maybe have been keeping each other updated with news about them.) Having someone to share your journey with can make a significant difference. Whether it’s a friend or family member keeping in touch about each other’s progress will be rewarding in itself, if you feel like you’re struggling to stay motivated or facing financial hardship, don’t hesitate to seek help from a financial advisor or counselor. They can provide expert advice and tailored strategies to keep you on track. On that note be sure to shoot us a question! We’re always happy to help.

Reward Yourself:

Treat yourself when you hit specific milestones or achieve certain goals, after all, you deserve it! of course, it doesn’t have to be extravagant; it could be as simple as a night out at your favorite restaurant or a small purchase you’ve been looking to buy. Rewards can make the process more enjoyable be sure to save the best for the last or the final stretch, and take a moment to think about what would you reward yourself after making all your payments.

Stay Informed:

Educate yourself about your student loans and repayment options. Understanding the impact of interest rates and how various repayment plans work can motivate you to pay off your loans faster. Knowledge is power, and it can drive your determination. There are constantly new updates and developments being released, in addition, life is unpredictable, and financial setbacks can happen. We’ve seen it with our clients and the work that we do. Instead of feeling discouraged, adapt to these challenges. Explore alternative payment plans or consider refinancing options to make your journey more manageable this is why it’s extremely important to ensure that you understand each plan and have another one in mind in case of the unpredictable.

Visualize Life After Debt:

Imagine how your life will improve once your student loans are paid off. Visualize the financial freedom, reduced stress, and opportunities that will come your way. Keeping this vision in mind can keep you focused on your goal. Keep a diary of the progress made and write down what you’ll do after you pay off your debt it may seem far off but knowing it’ll happen and having an idea of what that might look like will fuel your determination.

Conclusion:

Remember that the journey to paying off student loans is a marathon, not a sprint. Stay committed, celebrate your progress, and keep your eyes on the prize of financial freedom. And as always, be sure to follow us on our socials to get the latest news on student loans!

The post Staying Motivated During Your Journey to Student Loan Repayment. appeared first on Northwest Consumer Law Center .

Posted in Uncategorized

Federal Student Loan Repayment Plans: Which One Will Work for You?

Fri, 15 Sep 2023 16:57:00 GMT

Things to note: the monthly payments on this plan are typically higher than the other repayment plans which may be challenging for borrowers with lower income or in the event of a financial hardship. Also, if you are seeking Public Service Loan Forgiveness, however, the standard repayment plan is likely not ideal for you. PSLF forgives the remaining balance after 120 qualifying payments (i.e., 10 years of repayment).

Graduated Repayment Plan

For this plan, you can expect your monthly payments to start at a lower amount and increase every two years. For recent grads who may just be entering the job market, this plan is a good choice if you expect your salary to increase over time. The plan is usually set to have your loans paid off in the span of 10 years but can be extended up to 30 years for consolidated loans.

Things to note: this plan, like the standard repayment plan, is not ideal for those seeking PSLF. Ideally, your salary will increase as you progress into your career, but this is not the case for all borrowers.

Extended Repayment Plan

This plan is only for those who have more than $30,000 in outstanding debt. Payments may be fixed or graduated, with the aim to have your loans paid off within 25 years. With consistent payments on the Extended Repayment Plan, any remaining loan balance may be forgiven after 25 years This payment plan can mean paying less in monthly payments, offering flexibility for borrowers.

Things to note: forgiveness under this plan may be considered taxable income so it’s important to factor that into your financial planning. Also, with this plan taking longer, you might end up paying more interest over time than other plans.

SAVE Plan

The newest repayment plan, put into place shortly after the Supreme Court decision, is available for any Direct Loan Borrower. Under this plan, your monthly payments will be 5% of your discretionary income, and payments are recalculated each year based on your updated income and family size. After 20 years (25 for graduate studies), you can expect your loans to be forgiven if you haven’t repaid your loans in full. Unlike the other plans listed above, this plan may be a good option for those seeking PSLF.

Things to note: this plan may not be the most efficient way to pay off your student loan debt, and you will likely pay more in interest than other plans. Also, you may have to pay income tax on any amount that is forgiven.

Pay As You Earn (PAYE)

This plan is designed to make monthly payments more affordable since payments will be calculated based on your income and family size and cap your monthly payments at 10% of your discretionary income making sure your payments stay affordable.

Things to note: you must have been a new borrower on or after October 1, 2007 and must have received a disbursement of a Direct Loan on or after October 1, 2011.

Income-Based Repayment Plan (IBR)

Like the SAVE plan, your monthly payments will be calculated based on your monthly income and are recalculated every year based on your current income, after you finish making those payments like the SAVE plan any forgiven debt will be considered taxable income.

Overall, there are many repayments plans for most borrowers to choose from. Be sure to do your research beforehand to pick the one that will work best for you!

The post Federal Student Loan Repayment Plans: Which One Will Work for You? appeared first on Northwest Consumer Law Center .

With federal student loan repayment starting again on October 1, you may be wondering how you’re going to be able to resume payments. After all, it’s been over three years since millions of borrowers have had to submit a federal student loan payment. Fortunately, federal student loans have straightforward payment plans in place. Find out about the different plans, including income-based plans, to see which one may be right for you.

Standard Repayment Plan

The standard repayment plan is a straightforward and predictable way to repay your loans. The standard repayment plan essentially spreads out your loan to be paid within 10 years (up to 30 for Consolidation Loans). Since this plan is shorter than the rest, you’ll be paying less over time than other plans. All borrowers are eligible for this plan.

Posted in Student Loans

Disputing Errors on Your Credit Report

Mon, 14 Aug 2023 19:40:00 GMT

Have you ever looked at your credit and noticed that something was off? It may be that you do not recognize a debt or that your home address is wrong. Even if this hasn’t happened to you, accurate credit reporting is a huge factor in your financial well-being. A clean and precise credit report is vital for obtaining favorable interest rates, securing loans for your first home, renting an apartment, and more. However, as mentioned above, errors in credit reports can be common, and unfortunately, these inaccuracies can have a negative impact on your financial opportunities.

But don’t worry! We’re here to guide you through the process of disputing errors on your credit report. It’s a fundamental right that empowers you to ensure your credit history is fair and accurate. So, after you obtain your free credit report, let’s dive into the steps you should take if you believe there’s been a mistake on your report:

1. Regularly Review Your Credit Reports Thoroughly:

We recommend that you review your credit report at least once a year for inaccuracies. Once you receive your report, carefully examine it for any inaccuracies, including incorrect personal information, accounts that do not belong to you, or inaccurate payment history. Checking your report is also a good way to spot identity theft early. Start making notes of any discrepancies or errors you find, creating a detailed record of the errors, including the account names, the nature of the mistake, and any supporting documentation you have that proves there is an error.

2. Initiate the Dispute:

Now that you have your errors noted down, contact the credit bureau(s) where you found said errors. While you can often file disputes online through the credit bureaus’ websites, but we recommend that you use their provided postal addresses to send a dispute via certified mail so that you can prove the receipt was received by the credit reporting agency. The Federal Trade Commission (FTC) has an excellent sample dispute letter you can use here .

If the error is related to a specific creditor, contact them directly, in addition to the credit reporting agency reporting the information, to dispute the account on your credit report. Furnishers, such as creditors, are the companies that provide information to credit bureaus, so they have the ability to correct inaccuracies as well.

3. Be Persistent:

Once you’ve filed a dispute, the credit bureau has a legal obligation to investigate it within 30 days. While waiting, it is essential to maintain open lines of communication. Be sure to check your mail regularly, and do not hesitate to follow up with the credit bureau(s) and the furnisher if necessary. Keep a record of all your interactions to ensure you have a comprehensive trail of communication.

It’s worth noting that if your dispute is deemed “irrelevant” or “frivolous,” the investigation may be closed by the credit reporting agency. Should this occur, you’ll be promptly notified, along with an explanation. In some cases, they may simply need more evidence before they continue the investigation.

Once the investigation is completed, take the time to review your updated credit reports from each bureau. Make sure that the errors have indeed been rectified as you requested. Verification is the final step in ensuring the accuracy of your credit history. If the credit reporting agency does not fix the error on your credit report, contact an experienced consumer protection attorney for legal assistance.

Remember, it’s crucial to monitor your credit reports periodically, even after resolving disputes, to ensure no new errors occur.

Disputing errors on your credit report is your right as a consumer, and exercising this right is essential to maintaining accurate financial records. If you encounter challenges during the dispute process or if errors persist, don’t hesitate to reach out to us for guidance and support.

Stay tuned for more tips and advice from us as we continue to empower you with essential information for managing your credit and protecting your consumer rights.

The post Disputing Errors on Your Credit Report appeared first on Northwest Consumer Law Center .

Posted in Debt Defense

Unmasking Racial Disparities in Credit Reporting

Tue, 08 Aug 2023 17:35:00 GMT

In our ongoing pursuit of justice and equity, we wanted to shine a spotlight on an issue that has long affected minority communities: racial disparities in credit reporting. While credit scores play a crucial role in financial opportunities, these disparities have sustained systemic inequality and hindered economic progress for many. Let’s go ahead and address the complexities of this issue and explore ways to dismantle these barriers to create a fairer financial landscape.

First, we have to understand what Racial Disparities in credit reporting mean, credit reporting agencies, though meant to be impartial record-keepers, have inadvertently become online spaces for racial bias. Studies have consistently shown that minority individuals, particularly Black and Hispanic communities, tend to have lower credit scores compared to their white counterparts. For example, one study made by the CFPB found that “Families living in majority Black and Hispanic neighborhoods are far more likely to have disputes of inaccurate information appear on their credit reports.” Factors such as historical discrimination, income inequality, and limited access to financial resources contribute to these disparities.

The Vicious Cycle of Inequity

Racial disparities in credit reporting form a vicious cycle, where negative credit scores lead to limited access to financial opportunities, which, in turn, can hold economic challenges for individuals and families. This cycle reinforces social and economic inequalities, making it harder for minority communities to achieve financial stability and upward mobility.

As stated by NCLC “Credit scoring is a reflection of the racial economic divide and wealth gap in this country.” With minority communities being the most negatively impacted by credit reporting, one of the most significant consequences of these disparities is the limited access to credit for minority individuals. With lower credit scores, they will most likely face higher interest rates, reduced borrowing options, and even outright denials for credit applications. This unequal access to credit restricts opportunities for homeownership, education, auto ownership, and overall economic growth.

NWCLC firmly believes in advocacy as a powerful tool to combat racial disparities in credit reporting. We will actively support legislative efforts aimed at ensuring fair credit reporting practices and reducing bias in the credit scoring system. As noted by the CFPB, under the Fair Credit Reporting Act. “People have the right to file a dispute with credit reporting companies to correct inaccuracies on their credit report.” If you believe you’ve been a victim of unequal credit reporting you can file a claim on their website. NCLC suggests an expansion of “Second Chance Programs” special purpose programs that give consumers who have fallen on hard times a chance to rebuild their credit histories, thus providing a path towards financial recovery.

Moving to a More Equitable Future

As we advocate for a more equitable credit reporting system, we remain steadfast in our commitment to fight for the rights of all consumers. We recognize that this journey toward economics may be long, but together, we can make a difference, by educating ourselves on the racial issues that impact our community and advocating for policies that will work to address those issues we can strive for a future where every individual has equal access to financial opportunities and economic prosperity.

The post Unmasking Racial Disparities in Credit Reporting appeared first on Northwest Consumer Law Center .

Posted in Advocacy

How to Obtain Your Free Credit Report

Tue, 08 Aug 2023 17:34:00 GMT

You probably heard how important credit scores are about a million times, however it doesn’t hurt to hear it again! Credit scores are a powerful tool and knowing what your score is essential to your financial well-being. Let’s get started on how we can obtain a free credit report!

Before diving in, it’s essential to know your rights. Under the Fair Credit Reporting Act (FCRA), you are entitled to one free credit report every 12 months from each of the major credit bureaus: Equifax, Experian, and TransUnion. These are the companies responsible for collecting and reporting your credit information. To get your free credit report go ahead and visit AnnualCreditReport.com , (pictured below) the official website to request your free credit reports. Beware of other websites claiming to provide free credit reports as they might require you to sign up for paid services!

Once you’re on AnnualCreditReport.com, you can select how you want to obtain your credit reports. You have three options; Online, Phone and Mail. And to protect your sensitive information, you’ll need to verify your identity before accessing your credit reports. You might be asked to provide your name, address, date of birth, and Social Security number.

Once you have your credit reports, it’s time to review them diligently. Check for any inaccuracies, such as incorrect personal information, unfamiliar accounts, or late payments that you know were made on time. Reporting errors to the credit bureaus promptly is essential for maintaining accurate credit information.

Why Obtaining Your Free Credit Report Matters

Detect and Correct Errors: Your credit report is not immune to errors, and inaccuracies can negatively impact your credit score. By reviewing your report regularly, you can catch and dispute any errors before they harm your financial standing.

Guard Against Identity Theft: Monitoring your credit report can help you spot signs of identity theft, such as fraudulent accounts opened in your name. Early detection allows you to take swift action to protect your identity and minimize potential damage.

Prepare for Financial Milestones: Whether you’re planning to buy a car, rent an apartment, or apply for a loan, having a clear understanding of your credit history enables you to negotiate better terms and secure favorable deals.

Obtaining your free credit report is a powerful tool for financial empowerment. Regularly monitoring your credit allows you to be proactive in maintaining your creditworthiness and protecting your financial future. Remember, your credit report is a reflection of your financial health, and being informed is the first step towards financial success. Take charge of your financial well-being by obtaining your free credit report today!

The post How to Obtain Your Free Credit Report appeared first on Northwest Consumer Law Center .

Posted in Debt Defense

From Financial Struggles to Empowered Stability in Retirement.

Sat, 22 Jul 2023 01:45:00 GMT

Overwhelmed with the challenges of managing his finances and dealing with chronic health issues, Joshua * found himself on a daunting path toward retirement. Living on a fixed income with increasing debt proved to be an immense challenge, so he reached out to his family for support. In 2019, with the help of his family, Joshua took a crucial step toward financial stability by seeking help from Northwest Consumer Law Center.

Joshua and his family met with NWCLC Executive Director Amanda Martin to discuss the financial challenges closing in around him and his options for finding financial stability in retirement. Their meeting marked the beginning of a multi-year journey through the complexities of bankruptcy, debt collection, and foreclosure, with our staff providing unwavering support, expertise, and guidance every step of the way. Amidst numerous meetings, phone conferences, and email exchanges, the knowledge, reassurance, and insight from NWCLC became a constant source of strength for Joshua. Our efforts were rewarded when the bankruptcy discharge order was finally entered.

Not only did Joshua experience a transformation in his finances, but his health also saw improvement after being relieved from the stress of overwhelming debt. Additionally, the successful passage of the Homestead Exemption Act, introduced by NWCLC and signed into law by Governor Inslee on May 12, 2021, saved Joshua’s home while allowing him to earn a discharge in bankruptcy. Joshua’s story is just one among many whose lives have been touched by our dedication to empowering those who are struggling with debt. Of our work together, Joshua said “we can’t thank Amanda and her team enough for all they did for us; as well as countless others.”

*Names and identifying details have been changed.

The post From Financial Struggles to Empowered Stability in Retirement. appeared first on Northwest Consumer Law Center .

Posted in Client Stories , News

Exploring Options for Private Student Loans: What Borrowers Need to Know

Wed, 12 Jul 2023 19:22:00 GMT

With all that’s going on surrounding student loans, private student loan borrowers have been feeling left behind as the focus has been on federal loans.

Private student loans, for some borrowers, can be a necessary resource for funding higher education, and they come with their own unique considerations and challenges. Unlike federal student loans, which offer various repayment options and borrower protections, private loans are issued by banks, credit unions, and other private lenders that do not have to offer the same affordable repayment plans or protections. To help you navigate your loans after graduation, let’s explore the options available to borrowers with private student loans!

Understand Your Loan Terms – The first step in managing private student loans is to fully understand the terms and conditions of your loan agreement. Carefully review the interest rate, repayment term, repayment schedule, and any additional fees or penalties. Knowing the specifics of your loan will help you make informed decisions and plan for the future.

Explore Refinancing and Consolidation – Refinancing or consolidating your private student loans can be a smart strategy to lower interest rates, reduce monthly payments, or simplify repayment. By refinancing, you may be able to obtain a new loan with better terms from a different lender. Consolidation, on the other hand, combines multiple loans into a single loan, potentially with a lower interest rate. Research different lenders and compare their offers to find the best option for your circumstances. Be sure to watch out for scams as many predatory lenders have entered the student loan refinance industry.

Communicate with Your Lender – If you’re facing financial hardship or struggling to make your loan payments, don’t hesitate to reach out to your lender. Many private lenders have hardship programs or options for loan modification. They may be willing to work with you to find a more manageable repayment plan, such as temporarily reducing payments or extending the repayment term.

Consider Income-Driven Repayment (IDR) Plans – While income-driven repayment plans are primarily associated with federal student loans, some private lenders may choose to offer similar options. Typical income-based repayment plans adjust your monthly payments based on your income and family size, making them more affordable for borrowers with limited financial resources. However, since they only apply to certain private loans, it’s important to contact your lender to inquire about any available income-driven repayment plans or alternative repayment arrangements. Remember, you don’t know unless you ask!

Navigating the complexities of private student loans can be challenging, especially if you’re facing financial difficulties. Consider consulting with a student loan attorney or a reputable financial counselor who specializes in student loan debt. These professionals can provide personalized guidance, help you explore all available options, and negotiate with lenders on your behalf.

While private student loans may seem to lack the borrower protections and flexible repayment options offered by federal loans, there are still strategies available to manage and alleviate the financial burden. By understanding your loan terms, exploring refinancing or consolidation, communicating with your lender, considering income-driven repayment plans, and seeking professional advice, you can take proactive steps to navigate the private student loan landscape effectively. Remember, each borrower’s situation is unique, and what works for one person may not be suitable for another. Take the time to evaluate your options, seek guidance when needed, and empower yourself with the knowledge to make informed decisions about your private student loans.

At Northwest Consumer Law Center, we are dedicated to providing resources and support to borrowers struggling with student loan debt. If you need further assistance or have specific questions, please don’t hesitate to reach out!

The post Exploring Options for Private Student Loans: What Borrowers Need to Know appeared first on Northwest Consumer Law Center .

Posted in News , Student Loans

How to Deal with Your Federal Student Loans Post-SCOTUS Decision

Wed, 12 Jul 2023 18:47:00 GMT

On Friday, June 30, 2023, the U.S. Supreme Court rendered a highly divided decision that blocked President Biden’s federal student loan cancellation plan, with six of the justices striking down against cancellation. This decision had a significant impact on nearly 40 million Americans who were anticipating relief from overwhelming student loan debt. While we are disappointed by this outcome, we are here to address the next pressing question: “What happens now?”

President Biden acted swiftly and announced his plan for an alternative approach just hours after the Supreme Court decision. He stated that he now intends to utilize the Higher Education Act of 1965 to make another attempt at providing borrowers with much-needed relief. However, implementing this plan may take a year or even longer, meaning that we may not witness substantial progress in federal student loan forgiveness until 2024. This approach may also be subject to legal challenges. Though this delay may be frustrating, there are immediate steps you need to take as federal student loan payments are set to restart in October.

The Department of Education plans to implement more affordable repayment plans for student loan borrowers. The recently introduced SAVE plan offers an income-driven payment structure that can potentially cut borrowers’ monthly payments in half, leaving many with a $0 monthly bill. This new plan will replace one of the existing income-driven repayment plans, but the full benefits won’t be realized until next summer when the SAVE plan is fully implemented. Despite the delay, it is a positive development for borrowers who seek more manageable payment options.

In the meantime, here are some immediate actions to consider when payments become due in October:

Review your repayment options: Take the time to understand the various repayment plans available to you, these might include forbearance; allowing you stop temporary making payments or make smaller payments or you can check out the current income-based repayment plans . Explore each of the features, benefits, and eligibility criteria of each plan to determine which one aligns best with your financial situation.
Evaluate your budget: With loan payments resuming, reassess your budget to ensure that you can comfortably meet your repayment obligations. Consider adjusting your expenses or seeking additional sources of income to accommodate your student loan payments.
Communicate with your loan servicer: Stay in touch with your loan servicer to address any questions or concerns you may have regarding your repayment plan.
Seek professional advice: If you are unsure about the best course of action or need personalized guidance, consider consulting with a financial advisor or a student loan counselor. They can provide expert insights and help you make informed decisions.
Stay updated on developments: Continuously monitor updates from reliable sources regarding student loan forgiveness and related policies. Changes in legislation or government programs may impact your repayment options in the future.

While the Supreme Court’s decision was disheartening for the millions desperately needing student loan relief, it is essential for these borrowers to remain proactive and informed. Despite the setbacks, the introduction of the SAVE plan offers a glimmer of hope for borrowers seeking more manageable repayment terms. By taking the necessary steps and staying engaged with the evolving landscape of student loans, you can navigate this challenging situation with confidence.

The post How to Deal with Your Federal Student Loans Post-SCOTUS Decision appeared first on Northwest Consumer Law Center .

Posted in News , Student Loans

Managing Payments and Exploring Options For Borrowers in 2023

Fri, 23 Jun 2023 17:45:00 GMT

In addition to locating your loan servicer, the Dashboard holds a wealth of information. For example, the Loan Simulator, located under the Quick Links section, is a tool you can use to estimate loan payments and can recommend ways to lower your monthly payment or pay off your loans sooner. The Dashboard will also display the total amount of funds borrowed as well as the total interest that has accumulated. By clicking the “View Details” on your Dashboard, you’ll be able to see a more detailed description of your loans by type (such as subsidized and unsubsidized) and school. This page will also show the interest rate for each type of loan. Furthermore, all this information should be available on your individual servicer’s website.

Many borrowers me be feeling apprehensive about their loan payments starting up again soon, but there are options to consider for those feeling this way. First, borrowers should look into an Income Driven Repayment Plan, which takes one’s income level and family size into account to find an affordable monthly payment. This option should prove useful to anyone who needed to switch jobs over the last three years or whose family has grown. Second, is the Public Service Loan Forgiveness Program. This program is focused on borrowers who work in public service in federal, state, tribal, or local government, or for a non-profit organization. These borrowers may be eligible for loan forgiveness after making 120 monthly payments but know that enrollment in the program is required.

If you have any questions or concerns about restarting your student loan payments, assistance can be provided by your individual loan servicer or the Federal Student Aid Office, which can be found at https://studentaid.gov/ .

The post Managing Payments and Exploring Options For Borrowers in 2023 appeared first on Northwest Consumer Law Center .

Posted in News , Student Loans

The federal government paused student loan payments and interest accrual on federal loans in March 2020, but that pause is set to expire this fall, with interest accrual starting September 1st and payments resuming October 1st. Throughout the payment pause, it is possible that your loans were transferred to a new loan servicer (or you may simply have forgotten who your loan servicer may be). Fortunately, finding out which servicer is currently responsible for your loans is an easy process. First, you’ll need to log into your studentaid.gov account. Once you’ve logged in, you should be brought to your Dashboard, and on the right-hand side of the screen, under “My Loan Servicer,” you’ll see the company responsible for servicing your student loans as well as a link to the servicer’s website.

Rebuilding Futures

Tue, 23 May 2023 08:19:00 GMT

Evan* approached NWCLC when he found himself overwhelmed by mounting credit card debt and student loans. Evan was facing daily struggles of managing a chronic health condition that significantly impacted his mobility and ability to work a full time job and pay off his debts. After exploring all of his options with NWCLC, he ultimately decided to file for Chapter 7 bankruptcy.

When NWCLC took on his case, we got to work right away by providing full legal representation throughout the bankruptcy process. With dedicated advocacy, NWCLC successfully secured the discharge of approximately $32,000 in medical and credit card debt on Evan’s behalf.

The debt relief obtained through NWCLC’s efforts brought immense relief to Evan, enabling him to regain control over his financial situation and move forward with a renewed sense of hope. This success story is a testament to the vital role that organizations like NWCLC play in supporting individuals facing overwhelming debt and medical hardships.

*Names and identifying details have been changed.

The post Rebuilding Futures appeared first on Northwest Consumer Law Center .

Posted in Client Stories

Triumphing Over Debt

Tue, 23 May 2023 07:54:00 GMT

Jason* was facing a daunting lawsuit from a debt collection company for nearly $15,000 in medical debt that he could not afford to pay. Over the course of several years, Jason endured multiple surgeries and spent months hospitalized. Compounded by his significant immunocompromised state, Jason was forced to make a difficult decision to resign from his longtime position as youth counselor. Currently, he relies on retirement funds and works part-time as a caregiver for a developmentally disabled individual. Feeling “concerned and a bit embarrassed” and overwhelmed with the prospect of facing a collection lawsuit alone, he reached out to NWCLC for assistance.

Understanding the immense challenges Jason faced, NWCLC stepped in and represented him during his Chapter 7 bankruptcy. Through our diligent efforts, NWCLC successfully facilitated the discharge of nearly $15,000 in debt, providing Jason with a fresh start and much-needed relief.

Jason was “relieved” with the debt relief obtained through NWCLC’s representation, which not only alleviated the financial burden on Jason but also allowed him to focus on his health and rebuild his life with greater stability and peace of mind. Jason’s story underscores the vital role that organizations like NWCLC play in protecting individuals from financial devastation. Here’s what Jason had to say about our services; “they were always very positive and helpful.”

We at NWCLC remain dedicated to advocating for individuals like Jason and helping them navigate the complexities of bankruptcy to achieve a brighter financial future.

*Names and other identifying features have been changed

The post Triumphing Over Debt appeared first on Northwest Consumer Law Center .

Posted in Client Stories

How The Fair Shot Act Will Keep Families Out of Poverty

Fri, 19 May 2023 19:24:00 GMT

On May 9th, 2023 Governor Inslee signed The Fair Shot Act into law. This significant legislation was a direct response to the growing living costs in our state, addressing the need for updated personal property exemptions that reflect the current economic reality in Washington for low and moderate income families. With The Fair Shot act now in effect, individuals and small business owners can protect their necessities when facing financial hardships and stay out of poverty.

The Fair Shot Act recognizes that our state’s outdated exemptions failed to adequately address the financial challenges faced by residents. The new legislation aims to bridge the gap between existing exemptions and the true cost of living, ensuring that individuals and families have a fair shot at financial stability. It also modernized outdated martial exemption laws from the 1800’s by providing married couples with the opportunity to have individual protections of their belongings.

We extend out deepest gratitude to all those who have supported The Fair Shot Act. The collective efforts of individuals, and organizations including, Washington State Association for Justice, National Association of Consumer Bankruptcy Attorneys, National Consumer Law Center, Statewide Poverty Action Network, the Washington State National Organization for Women for Washington, and Columbia Legal Services. Our supporters have all been instrumental in driving this legislation forward. This shared commitment to economic justice and consumer protection has been a driving force in making this moment possible.

Moving ahead, we remain dedicated to advancing our mission for economic justice by reforming consumer protections in Washington State. Collaborative efforts with supporters, partners and stakeholders will continue to play a pivotal role in ensuring that The Fair Shot Act is effectively implemented and its benefits are realized by all Washington residents.

In conclusion, the signing of The Fair Shot Act into law is a monumental achievement in the pursuit of economic justice in Washington. Together, we can make a lasting difference in the lives of Washington residents and create a fairer future for all.

The post How The Fair Shot Act Will Keep Families Out of Poverty appeared first on Northwest Consumer Law Center .

Posted in News

Tribute to National Consumer Protection Week

Mon, 06 Mar 2023 22:26:00 GMT

National Consumer Protection Week is a great opportunity for all of us to learn more about consumer law and how it affects our everyday lives. By doing so, we can be better informed when making decisions that involve our finances or when dealing with businesses that may not have our best interests at heart. The Federal Trade Commission offers excellent advice for consumers and will also be doing informational videos and events the whole week on various topics such as fraud prevention and avoiding identity theft.

Be sure to follow us on all of our social media channels this week to see our free educational content on consumer rights! Have a happy and safe week!

The post Tribute to National Consumer Protection Week appeared first on Northwest Consumer Law Center .

Posted in News

It’s the start of one of our favorite times of the year: National Consumer Protection Week! Starting on March 6, consumer advocates dedicate a full week to raising awareness about consumer law and protecting consumers from unfair practices. During this week, we at NWCLC will be making educational videos and answering your most pressing questions, including your consumer rights when purchasing a vehicle, checking your credit score, repaying student loans, and more!

Making Way for a New Path

Fri, 17 Feb 2023 19:37:00 GMT

Alex worked as a full-time photographer and ran a soundly running small business that suffered financially when the Covid-19 pandemic hit. Alex, out of necessity, started putting all his living expenses on credit cards as his small business was his main source of income. Fortunately for Alex, his small business started to slowly recover as pandemic restrictions eased. However, he knew that his current debt would hinder his ability to build his business moving forward and fully recover his household finances. So Alex came to NWCLC for assistance and successfully filed for bankruptcy. Alex is now able to move his business further with a clean financial slate after the COVID-19 pandemic.

The post Making Way for a New Path appeared first on Northwest Consumer Law Center .

Posted in Client Stories

Getting a Fair Shot

Tue, 14 Feb 2023 21:35:00 GMT

2023 is off to a great start! After a year since its launch, we got to see our bill, The Fair Shot Act, pass the senate on the first of February. This is exciting news as this act will bring Washington’s exemption laws to reflect the current cost of living in our state. Now, why are exemption laws important? Well, exemption laws are made to protect people from going into financial ruin during times of hardship. They focus on protecting money, vehicles, and other necessities from creditors.

It’s no question, as our speaker Christina Henry testifies “that the pandemic has shown just how weak these current laws are in protecting people’s property.”

And we’ve seen this with many small businesses having to close after years of hard work and thousands invested, we can probably list three of these from the tops of our heads. Not only that but a lot of people in the hospitality business ended up losing their jobs. There was no solid plan to protect these people from near poverty.

If the Fair Shot Act had been in place, there wouldn’t have been as much devastation. It’s also no question that the cost of living in our state has increased dramatically over the last couple of years. Seattle’s housing expenses are 118% higher than the national average, we have a “C” grade in protecting people’s property from NCLC; a change in Washington’s current property exemption laws was due.

Now moving forward, The Fair Shot Act will focus on three main key areas; personal property exemptions, tools of the trade, and personal injury claims. You’ve probably seen our page by now and have heard the heart-wrenching stories of those who’ve testified in favor of the Fair Shot Act, each affected by the lack of protection in these categories. If you need to, you can watch them on our page here .

Although we can’t go back and change what has happened, we will continue to speak for those who have struggled under our state’s exemption and now forward with ease of mind that we are on track to have more protection than ever before.

The post Getting a Fair Shot appeared first on Northwest Consumer Law Center .

Posted in Advocacy

Student Loans Go Before the Supreme Court

Tue, 14 Feb 2023 19:46:00 GMT

On February 28, 2023, the Supreme Court of the United States will hear oral arguments on two separate cases, both of which challenge President Biden’s loan forgiveness program. As announced in August 2022, Biden’s Program would forgive $10,000 of student debt for individuals making less than $125,000 per year or married couples making less than $250,000 per year. Additionally, Pell Grant recipients could get an additional $10,000 in loan forgiveness.

President Biden’s authority to do so rests in the Higher Education Relief Opportunities for Students Act, commonly referred to as the HEROES Act. The Act, initially enacted following the terrorist attacks of September 11, 2001, allows the government to waive and modify student loan payments in the event of a national emergency, including the COVID-19 pandemic.

The first case, Biden v. Nebraska , was initiated by six states, which challenged Biden’s authority to grant such debt relief. The States challenged the Biden administration’s authority to use the HEROES Act to waive debt in such a large scope. They also claim the States will receive less tax revenue from the loss of student loans. The district court dismissed the case due to the States’ lack of standing, meaning the court did not think the States had a legal basis to bring their claims. The States appealed to the Eighth Circuit, which stayed (put on hold) the loan forgiveness program pending the appeal. The Biden administration appealed to the US Supreme Court, which agreed to hear arguments on the case.

The second case, Department of Education v. Brown , was filed by two individuals who are ineligible to take full benefit of Biden’s plan. One individual has privately held student loans, and the other, having not received a Pell Grant, cannot fully benefit. They argue the forgiveness program is arbitrary and unfair. They also claim the Biden administration failed to follow the proper procedures to use the HEROES Act. The district agreed with the plaintiffs and declared the loan forgiveness program unlawful. The Biden administration quickly appealed the decision and requested the order be stayed until their appeal could be heard. The Fifth Circuit denied the request forcing the Biden administration to appeal to the US Supreme Court, which agreed to hear the case.

While the Supreme Court will address issues related to the Biden administration’s authority, the States’ standing, and the procedural aspects of the forgiveness program, the American public is primarily concerned with the impact these cases will have on their student loan payments. Over 43 million Americans have student loan debt, totaling approximately $1.63 trillion.

Biden’s loan forgiveness program would eliminate roughly $430 billion in student debt and offer relief to over 40 million loan borrowers. With student loan payments set to resume this June, and many Americans still recovering from the effects of the pandemic, a reduction in student loan debt would be a much-welcome relief to borrowers should Biden’s plan be allowed to proceed.

The post Student Loans Go Before the Supreme Court appeared first on Northwest Consumer Law Center .

Posted in Student Loans

When the Dealership Gives Your Lemons

Tue, 14 Feb 2023 19:43:00 GMT

Do you know what a lemon is? We’re not talking about the fruit – Lemon Law protects new vehicle owners who have significant, continuing mechanical problems with their vehicles that are covered by a warranty.

Most consumers think any vehicle purchase gone wrong can qualify as a lemon, but that’s not true! Lemons must have had an attempt to diagnose or repair during the Lemon Eligibility Period within 2 years from the original retail delivery date and before the vehicle reached 24,000 miles on their odometer. This means that most used car vehicle sales are not lemons!

If you purchased a used vehicle that’s older than 3 years from the manufacture year and has more than 24,000.00 miles, your purchase does not qualify as a lemon under the Lemon Law.

If you think you might have a lemon, consider what kind of defect your vehicle might have. The Lemon Law only protects against defects that substantially impact the use, value, or safety of the vehicle. This means cosmetic defects, such as chipped paint or small rips in the car seats, probably would not reach the level that’s required for Lemon law protection.

Examples of possible Lemon Law defects might include: engine, fuel line, and airbag issues. There are two main types of defects covered by the Lemon Law: nonconformity and serious safety defect. Depending on which defect you have, you may need to diagnose or attempt repairs a different number of times. Each type of defect has different requirements under the Lemon Law, so reach out to NWCLC if you need assistance figuring out if you have a lemon!

The post When the Dealership Gives Your Lemons appeared first on Northwest Consumer Law Center .

Posted in Auto Fraud

Unlawfully Charged

Thu, 05 Jan 2023 08:39:29 GMT

Samantha reached out to NWCLC after she was served with a debt collection lawsuit for a $17,000 loan. Samantha experienced very difficult times during COVID and needed the loan to pay for medical bills and to get her car fixed after an accident. All this caused Samantha to feel “stressed, nervous, and quite intimidated before contacting NWCLC.”

Samantha thought the loan was for $6k, so she wanted to hire NWCLC to investigate since the debt collector was charging twice the amount. After discovery, NWCLC found that the debt collector was charging a usurious interest rate and was able to negotiate a great settlement on Samantha’s behalf.

Here’s what Samantha had to say about NWCLC, “Attorney Alyssa and the legal team at NWCLC provided excellent service and are client-oriented…She (Alyssa) understood the intricacies regarding my legal matter which helped in negotiating a favorable settlement. I felt relieved after coming to a close of a stressful situation and content with the terms.”

Posted in Client Stories , Debt Defense

A New Chapter

Fri, 19 Aug 2022 08:41:44 GMT

When Stacie* first reached out to NWCLC, she was unemployed and struggling with debt. When she finally found employment, she decided to double down on filing for bankruptcy to get the fresh start she needed for her new life, especially after an out-of-state collector sued her. She knew that even with her new job she would never be able to pay the bills that accumulated while she was unemployed. With NWCLC’s representation for her Chapter 7 bankruptcy, Stacie was able to discharge $70,000 worth of debt and got the fresh start she deserved. She was able to start her new job in a clean financial state.

*Names and identifying facts have been changed

Posted in Bankruptcy , Client Stories , Debt Defense

Finally Being Able to Breathe

Fri, 19 Aug 2022 08:41:00 GMT

Marie Ann originally reached out to NWCLC after being served with two debt cases seeking almost $20,000 in debt that Marie Ann couldn’t afford to pay on her modest salary. The credit card debt belonged to her wife, but due to after her tragic passing, Marie Ann was unfortunately left with the debt. Feeling anxious, she came to us for help. We sat down with Marie Ann and reviewed all of her options with her. Marie Ann decided that earning a fresh start through bankruptcy would be her best choice. We helped Marie Ann get rid of over $87,000 of debt that would have left her struggling for a very long time. Marie Ann is now able to move forward with a fresh financial start.

Posted in Bankruptcy , Client Stories , Debt Defense

A Well Deserved Fresh Start

Fri, 19 Aug 2022 08:40:20 GMT

Rachel first reached out to us for advice on how to respond to a debt defense lawsuit from a big brand-named bank that had left her feeling stressed and devastated. To help, we provided brief advice on how to respond to the lawsuit and also discussed bankruptcy as another option for her to discharge the debt. About two weeks later, Rachel came back to us after deciding that bankruptcy was the best solution to get rid of the debt. Rachel was unemployed and recently moved to a new city, so she liked the idea of filing for bankruptcy to get the fresh start she needed. NWCLC filed Chapter 7 on her behalf and was able to discharge $39,414.40 in debt. Rachel said that “it feels like a huge weight being taken from my shoulders, and I am now able to start my new life debt free.”

Posted in Client Stories , Debt Defense

Old Debt Comes Back

Tue, 21 Jun 2022 20:54:00 GMT

Georgia* came to us after she was served by a debt collector. She was told that she had to show up in court in a completely different county than where she lived. It was for an old medical debt that she recognized, but thought had been taken care of by insurance. She went to court on her own, and the judge gave her more time to find an attorney. During that time, NWCLC came in and filed counterclaims against the debt collector for filing the lawsuit in the wrong county. We then settled the case with a settlement to Georgia for her time dealing with the lawsuit in the wrong county and a discharge of her debt.

*Names and Identifying facts have been changed

The post Old Debt Comes Back appeared first on Northwest Consumer Law Center .

Posted in Client Stories , Debt Defense

Homestead Legislation/Bankruptcy

Tue, 21 Jun 2022 20:51:00 GMT

Victor Sanabria* had been living and working in the U.S. on a work permit, unfortunately, during the pandemic, he was let go by his employer and was experiencing financial difficulties. He is not married but supports his girlfriend and three children solely on his unemployment income; they all live in the same house which is co-owned by the grandmother of the children. Victor had a total credit card debt of about $50,000 and additionally some medical and personal loan debt that totaled to about $5,000. At 2 months behind on his mortgage, Victor reached out to NWCLC. We advised him that although bankruptcy won’t fix his mortgage issue, it will allow him to focus on keeping up with his house payments instead of his other debts.

This was Alyssa’s first case using the new Homestead Act exemptions. The home was worth about $260k in Snohomish County where the median house value was $549k, with the act now in place we concluded his case was a good fit with the exemption and he would be able to stay in his home after filing for bankruptcy. The bankruptcy was successfully discharged with no complications.

We asked how he felt before getting our help, his response: “I was very stressed without knowing what to do until I contacted you.” About NWCLC: “they are very professional, they know what they do.” After getting our help, “thank you very much for all your help very satisfied with the service you give me thank you very much Alyssa I will recommend you”

*Full release by client

The post Homestead Legislation/Bankruptcy appeared first on Northwest Consumer Law Center .

Posted in Bankruptcy , Client Stories

Auto Fraud

Tue, 21 Jun 2022 20:50:00 GMT

Jesus Jurez* was living at a new address when his brother was served at his former residence. The Complaint was for a $7,837.79 debt by Cavalry on behalf of Citibank. Instead of arguing the service issue, Jurez agreed to pay a sliding scale fee to avoid the debt collection lawsuit. Fortunately, once we were contacted and started investigating, we were able to identify WCAA .260 violations that we used to leverage against Cavalry to negotiate a settlement.

Jurez, satisfied with getting the debt discharged, prioritized that over getting paid for WCAA violations. Ultimately, we were able to get the debt wholly discharged with a removal of the tradeline from his credit reports.

NWCLC charged a total of $693.75 for attorney’s fees, which was completely paid by the client. This case has no confidentiality agreement. In his statement, Juarez was feeling “worried” before contacting NWCLC, and felt “more calm” after getting our help.

*Full release by client

The post Auto Fraud appeared first on Northwest Consumer Law Center .

Posted in Auto Fraud , Client Stories

Bankruptcy

Tue, 21 Jun 2022 20:25:00 GMT

Florence* is a single mom who supports her three kids working as a nurse. She fell into credit card debt after her ex-husband lost his job and was unable to send her child support. She used the credit cards to pay for small emergencies, like when her car broke down or when her kid broke his arm and insurance didn’t cover everything. Two years later and still no child support, Florence was overwhelmed with her credit cards. Even with an extra job, she was barely able to make the monthly payments.

When she received her stimulus checks during COVID, Florence planned to use them as a cushion to avoid debt in the future but her credit card companies were pressuring her to send them her checks. With the bankruptcy code, we helped Florence get relief and protected all of her savings, while granting her a fresh start.

Here’s what she had to say about NWCLC: “All of my bankruptcy questions were answered and it was a very smooth process even though we were dealing with COVID guidelines. Everything was explained to me very well so there wasn’t any surprises! Overall it was a great experience even though I had tried so hard to avoid bankruptcy. NWCLC is a wonderful organization and I am so happy I found them!”

*Names and Identifying facts have been changed

The post Bankruptcy appeared first on Northwest Consumer Law Center .

Posted in Bankruptcy , Client Stories

Student Loans

Tue, 21 Jun 2022 08:42:32 GMT

Olivia* received the summons and complaint for this case in the middle of the pandemic for private student loan debt from over 5 years ago. The client had a bad period where she was suffering from a medical condition where she was not able to make regular payments on the card. The debt buyer sued to collect $8,000. After pushing hard for discovery, OC agreed to discuss settlement. NWCLC was able to settle for a full discharge of the debt, removal of the tradeline on her credit reports, and payment to the client in the amount of $2,000.00.

*Names and Identifying facts have been changed

Posted in Client Stories , Debt Defense , Student Loans

Keeping the Family Together

Mon, 22 Feb 2021 03:30:00 GMT

The garnishment threatened to undo all the years of hard work and tear Donna’s family apart again. Donna had no way to pay a private attorney the typical $1500.00 or higher fee for filing bankruptcy. Fortunately, she found out about NWCLC.

Through a no-fee bankruptcy, NWCLC was able to stop the garnishment and keep Donna and her family on track toward financial security.

The post Keeping the Family Together appeared first on Northwest Consumer Law Center .

Posted in Bankruptcy , Client Stories

Donna, a single mother of three children, worked full-time as a receptionist as well as part-time on the weekends as a cashier just to make ends for her family.

Years earlier, some legal troubles had forced Donna apart from her children and made her unable to pay her car note, so her vehicle was repossessed. She resolved the legal problems, reunited with her children, and even went on to get an Associate’s Degree – but then got a nasty shock when the car lender, to whom she didn’t know she still owed any money, got a court order to garnish her wages.

A Bad Deal for Good Borrowers

Mon, 22 Feb 2021 03:30:00 GMT

Mr. and Mrs. Cunningham* were upstanding, retired senior citizens. They bought their home 30 years ago and were loyal borrowers ever since, making every mortgage payment on time and in full. They had no idea that their mortgage company had made a mistake in re-crunching some numbers and was wrongly applying their payments, until they received a notice that their final payment was six times as much as they agreed upon.

There was no way that the Cunninghams, living on fixed incomes, could come up with that kind of money. The mortgage company was unresponsive to the complaints they filed with regulatory authorities. It seemed the Cunninghams had no choice but to miss the last payment, go into foreclosure, and watch helplessly as three decades of hard work went down the drain.

Fortunately, they contacted NWCLC. We filed a lawsuit against the mortgage company to force it to honor the contract it had signed, and a fair settlement was quickly reached. The Cunninghams, incredibly respectful of their mortgage obligation, had continued to make payments into a trust account the whole time and ended up with $4,000.00 more than they would have owed!

The post A Bad Deal for Good Borrowers appeared first on Northwest Consumer Law Center .

Posted in Client Stories , Foreclosure Prevention

Whatever It Takes

Mon, 22 Feb 2021 03:25:00 GMT

Winnie tried to help her mother Hannah take advantage of the federal HAMP program which requires mortgage servicers to work with homeowners, in or on the verge of delinquency, to modify their mortgages so they can keep their homes. But Hannah’s mortgage holder (one of the largest banks in America that had recently bought her mortgage) was not playing by the rules. The bank dragged out the process for years, requesting and then claiming to lose financial documents five or six times.

Now in her late 70’s, Hannah’s health was deteriorating from the constant worry that she would lose her home. Then mother and daughter came to the Northwest Consumer Law Center.

Staff attorney Katy Box began by submitting a formal demand for a higher authority at the Bank to review Hannah’s application. She sent in hundreds of pages of documents on Emma’s behalf every week for over six months. The Bank still refused to review the application, instead setting a new foreclosure sale date to take away the home. Katy filed bankruptcy for Hannah to stop the foreclosure process and give her more time to get the application through the system.

When it became clear that it would not be convinced to cooperate any other way, Katy filed a lawsuit against the Bank for bad practices. The lawsuit dragged on for an entire year, until finally the Bank agreed to modify Hannah’s loan to settle the case.

Her mortgage now reduced to within her means, Hannah can rest easy for the first time in years, confident that she will be able to enjoy her retirement in her own home.

The post Whatever It Takes appeared first on Northwest Consumer Law Center .

Posted in Bankruptcy , Client Stories

Hannah was already a senior citizen when she bought her house at the height of the subprime mortgage scams in 2005. Unbeknownst to Hannah and her family, the mortgage broker had falsified her income to make her qualify for the loan and rake in profit from the fees.

She could barely afford the mortgage but had managed to keep up with the payments until 2011, when she lost her job as a caregiver. At the same time, the value of her house had plummeted, making it impossible for her to refinance into a more affordable mortgage.

When Hard Work is Not Enough

Sat, 20 Feb 2021 04:35:00 GMT

We knew we were getting to the point where we would not be able to pay the mortgage. So, I called our bank several times. One of the big ones! But, they would not help us because we were not yet in arrears. Here we were trying to be proactive, and no one wanted to talk to us!

Then we found our way to a housing counselor who was able to help us get a loan modification. This took two plus years, every minute of which we were on the financial edge, just barely making it. It was a living hell! But we never gave up! And it looked like we were going to be okay. I had just begun a job working with teens and kids on the Kitsap Peninsula. I loved the job. But the commute was eating us alive. Aside from the time it took – it was fifty miles one way; the gas costs and

bridge tolls were just too much. We began to fall further and further behind, relying on our credit cards just to get by. We were once again in danger of defaulting on our mortgage, losing our loan modification, and the house we had worked so hard to save. Our debt grew and grew because income was simply not enough to cover expenses. It was a combination of everything weighing us down, and finances were so stinking tight! So, we reached out for help again and found Nathan and the NWCLC staff.

We have been married for thirty-one years. We never dreamed of filing bankruptcy. It felt like crap! But, Nathan was up front with us from the beginning. He understood that this happens to hard working people when the economy falls apart. He said the bankruptcy laws were there to give folks like us a second chance. From the beginning, we were treated with respect and he worked with us to explore our options.

Our bankruptcy closed in June and I had one week until I started my new job working with kids and teens near Tacoma. We do not have any insurance, but I have full time hours and a reasonable commute. And I feel that my gifts and talents are being utilized.

We are approaching our sixties. We have three grandsons who are seven, two, and one. It is time to think about retirement, but we do not see that happening soon. My ultimate goal is to have a full time position with benefits. But, for the time being, I think we will be alright. We can breathe again. Thanks to Nathan and all the folks at NWCLC!

The post When Hard Work is Not Enough appeared first on Northwest Consumer Law Center .

Posted in Bankruptcy, Client Stories

My wife and I had the best intentions when we bought a house at foreclosure in 2008. We gutted it and did a total remodel. Our goal was to do a refinance, bringing the mortgage and other debts down to something more affordable for us. But, then the recession hit, and we were not able to refinance anything.

At the end 2009, I left my position at a local church. Fortunately, I received a severance package including salary, housing, and benefits for the entire year of 2010. My wife was working part time for a local school district, managing the lunch room at an elementary school. But I had a hard time finding another job in 2010 and 2011.