Feds Accused of Holding Back Tax Refunds Over Student Debt

The Trump administration has kept up collecting on federal student loan debt during the Covid-19 pandemic by withholding urgently needed tax refunds, according to a lawsuit filed Friday in Washington federal court.

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Loan Servicing

The Ninth Circuit affirmed a contempt sanction against Ocwen Loan Servicing in a case brought by debtors who claim they suffered severe emotional distress by receiving letters and phone calls from the company about the home they had abandoned to foreclosure before filing for bankruptcy. A bankruptcy court had concluded the company violated the debtors’ discharge injunction.

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