For the first time in nearly a decade, the national average FICO score has decreased, signaling that many Americans are experiencing some level of financial stress during a time of inflation and high interest rates. This drop has occurred despite historically low unemployment rates and as fears of recession fade. In October 2023, FICO released data showing the national average FICO score came in at 717, down from 718 in July. FICO shared that this recent one-point drop was a result of an increase in missed payments and rising debt levels for borrowers. While this average score remains near rec ..read more

Despite recent positive data regarding consumer confidence, LegalShield saw a concerning rise in financial constraints in the December Consumer Stress Legal Index (CSLI). The result was a peak in consumers seeking out bankruptcy help and other legal assistance. The data for the index draws from more than 35 million legal service requests and is forecasting a dip in the previously optimistic consumer confidence. This trend of consumers seeking help filing for bankruptcy showed a disproportionate impact on younger generations and reflects a potential credit crisis. A report from Newsweek stated ..read more

Navient Corporation recently announced to shareholders plans to end its current student loan servicing business following a number of scandals and government lawsuits. The one-time leader in the market plans to transfer millions of student loan borrower accounts to the Missouri Higher Education Loan Authority (MOHELA). In 2014, Navient was the largest student loan company in the world, managing more than 12 million accounts of student loan borrowers. The organization has since faced numerous consumer protection lawsuits from state and federal regulators and continues to defend itself against a ..read more

Inflation rates are now lower than they were a year ago, according to the U.S. Department of Labor (DOL). Consumer inflation expectations are also moving lower. A recent report from the DOL showed that consumer prices rose a seasonally adjusted 0.3% in December from November, resulting in prices being up 3.4% from 2022. Price increases were up 3.1% year over year in November. However, the main difference comes when looking at core prices, which exclude food and energy products that are more unpredictable. Looking at the changes for core prices show that for the first time since May 2021 prices ..read more

The Internal Revenue Service (IRS) recently announced that its Free File guided software service is ready for taxpayers to use ahead of this year’s tax season. This will allow millions of taxpayers to file using free technology. Offered through a partnership between the IRS and Free File, Inc., IRS Free File is one of many options available for taxpayers for filing their returns online or in person. Eight partner organizations are available to help taxpayers with an adjusted gross income (AGI) in 2023 of $79,000 or less with their filing. Those with an AGI over $79,000 can use the IRS’s Free F ..read more

As some student loan repayments have returned following a nearly four-year pause, some institutions are taking action to ensure students do not end up in large amounts of debt by implementing “no-loan” policies, which will allow students to receive full financial support from the outset of their college education. About two dozen schools have introduced policies that will meet 100% of undergraduate students’ financial needs through grants and other financial aid rather than student loans. These universities are even eliminating student loans from their financial aid packages altogether. In an ..read more

Sader Law Firm, LLC is pleased to announce Missouri Lawyers Media (MLM) has selected Neil Sader for its 2023 class of Law Firm Leaders in the Missouri Lawyers Awards. Sader, founding partner and managing member, was one of seven who earned recognition in the category, MLM recently announced. The Missouri Lawyers Awards recognize lawyers who have made an impact in the legal profession over the past year. The recognition as Law Firm Leader is awarded to chairpersons, managing partners or other law firm executives who demonstrated extraordinary vision, innovation and leadership during the year. S ..read more

There has been an increase in borrowers who are filing for bankruptcy related to eliminating their student debt following recent federal government policy changes, which allow individuals to eliminate this type of debt if they meet certain economic hardship criteria. The new guidelines were put in place in November 2022 with the goal of ensuring more transparent and consistent expectations for discharging student loan debt. Borrowers will first complete an attestation form so the government can assess the discharge request. Next, the government will calculate whether the debtor’s expenses equa ..read more

In a recent lawsuit against a Kansas car dealership, an independent arbitrator found the dealership to be liable for more than $14.8 million in damages for customers whose information was falsified on their credit applications. For these customers, this resulted in higher loan payments and increased financial stress. In a report from Missouri Lawyers Media, the lead attorney for the 31 claimants, Ken McClain, said that the dealership was falsifying the information on the applicants’ credit applications. Information like income and job titles were inflated to ensure the applicants would qualify ..read more

Sader Law Firm, LLC is proud to announce that Managing Member Neil Sader has earned recognition once again in Missouri/Kansas Super Lawyers. It’s the 18th straight year the Thomson Reuters business has highlighted Sader’s work. In this year’s edition, he is recognized for his work in (1) Bankruptcy: Business; (2) Real Estate: Business; (3) Business Litigation; (4) Creditor Debtor Rights: Business; and (5) Bankruptcy: Consumer. Each year, no more than 5% of the lawyers in the state are selected by the Super Lawyers research team for inclusion on the Super Lawyers list. Super Lawyers is a rating ..read more