Student loans are difficult, but not impossible, to discharge in bankruptcy. To do so, you must show that payment of the debt “will impose an undue hardship on you and your dependents.”

For more information, visit the Student Loan Borrower Assistance website.

Payday lenders are not the only option for consumers facing debt problems. There are many alternatives to payday loans such as: small savings accounts or rainy-day funds; salary advances from employers; credit card advances; working out extended repayment plans with creditors; and loans from friends, relatives, religious institutions, or social service agencies. 

In addition, many lenders have developed lower-cost alternatives to payday loans that have better repayment terms.

To learn more about payday loan alternatives, visit the PTLA guide here.

This handout warns homeowners about predatory “high-cost” home loans and how to avoid being targeted. It explains common scams, like loan flipping, unaffordable loans, hidden balloon payments, high fees, and contractors who push expensive financing for home repairs. 

It also gives practical self-protection steps: shop around with reputable lenders, read everything before signing, ask for all costs in writing, and know you can cancel certain home-secured loans within three business days.

Some mortgage lenders target older homeowners who have a lot of equity but not a lot of income. They push “easy” loans with sky-high interest, huge fees, balloon payments, constant refinancing, or pressure sales tied to home repair work. Those terms can quickly drain equity and lead to foreclosure. 

This handout explains common warning signs (like being rushed to sign, refinanced again and again, or told to roll medical or credit card debt into a home loan) and what makes a loan predatory. 

It also notes that there are legal tools that may help challenge these loans, including federal disclosure laws, rules against kickbacks, and unfair/deceptive practices laws. If this is happening to you or an older relative, you should get legal help right away.

A loan is borrowed money which must be repaid in one or more payments. Lenders charge interest on the amount you borrow. This means that you pay back more than you receive. This is how a lender covers the cost of doing business and makes profit. 

The higher the interest rate, the more you must repay. You should know that the lower the monthly payment, the longer it will take you to repay the loan and the more you will pay to borrow the same amount at the same interest rate. 

See the attached guides in English and Spanish for more information.

The Center for Responsible Lending has created a list of five "Signs of Predatory Auto Finance Loans" that you may view below or view on their webpage: https://www.responsiblelending.org/issues/signs-predatory-auto-finance.

Have you ever wondered if bankruptcy might be a good option for you to regain your financial footing? Do you have questions about how bankruptcy works in Idaho? This information below guides you through some of the information you need to know in order to make an informed decision about whether bankruptcy is right for you. 

In addition to the attached Bankruptcy Basics guide, Idaho Legal Aid Services has created an Understanding Bankruptcy in Idaho video in both English and Spanish.

If you are low income and would like more information about bankruptcy, please contact your local Idaho Legal Aid office. 

If you need to file Chapter 7 bankruptcy, you may be able to file your bankruptcy through Upsolve. Upsolve is a national non-profit that helps people file for Chapter 7 bankruptcy at no cost. 

Read about whether Chapter 7 bankruptcy is right for you and visit Upsolve’s web site, upsolve.org, to see if you qualify.

The Federal Trade Commission has created guidance for consumers on whether debt relief or bankruptcy may be right for them. Debt got you down? You’re not alone. Consumer debt is at an all-time high. 

Whether your debt dilemma is the result of an illness, unemployment, or simply overspending, it can seem overwhelming. In your effort to get solvent, be on the alert for advertisements that offer seemingly quick fixes. While the ads pitch the promise of debt relief, they rarely say relief may be spelled b-a-n-k-r-u-p-t-c-y. 

And although bankruptcy is one option to deal with financial problems, it’s generally considered the option of last resort. The reason: its long-term negative impact on your creditworthiness. Bankruptcy information (both the date of your filing and the later date of discharge) stays on your credit report for 10 years, and can hinder your ability to get credit, a job, insurance, or even a place to live. 

For more information, please visit their website at: https://www.consumer.ftc.gov/articles/0084-debt-relief-or-bankruptcy

Corporations and partnerships must have an attorney to file a bankruptcy case. Individuals, however, may represent themselves in bankruptcy court. While individuals can file a bankruptcy case without an attorney or "pro se," it is extremely difficult to do it successfully. 

For more information, please visit this U.S. Courts guide on filing without an attorney.

Be forewarned, the following journey through Chapter 7 bankruptcy law is a bit technical, so if you are considering filing for Chapter 7 bankruptcy, consider consulting with a bankruptcy attorney first. For more information, visit the National Bankruptcy guide on how Chapter 7 bankruptcy works.

Chapter 11 allows for reorganization that usually involves a corporation or partnership. For more information, visit the U.S. Courts bankruptcy basis for Chapter 11 bankruptcy.

A common question is whether or not a debtor can keep a credit card after filing for bankruptcy protection and do I have to list the cards I want to keep. If you owe a balance at the time the bankruptcy petition is filed, you must list the debt. This applies regardless of the amount of the debt. 

If you are worried that you cannot live without a credit card there are a few options. A credit card with a zero balance does not need to be listed and can be used after you file the bankruptcy petition. If you have a card with a low balance, you should pay it off before filing for bankruptcy. However, be careful not to use balance transfers to pay off the card as the transaction could be undone by the trustee or challenged by the creditor if it is determined that the transfer was fraudulent.

NOLO has created an excellent overview of this information as well.

Student loans are difficult, but not impossible, to discharge in bankruptcy. To do so, you must show that payment of the debt “will impose an undue hardship on you and your dependents.” 

To learn more, visit the Student Loan Borrower Assistance website.

A garnishment is basically a legal collections tool where a creditor obtains a court order compelling an employer to withhold a portion of an employee’s wages. The amount that can be withheld is capped at 25%, however, the percentage may vary depending on the state issuing the garnishment and the type of debt. The cap applies to all creditors, meaning 25% is the most that can be withheld at any one time. 

Garnishments, however, are not limited to wages and can involve one time garnishment of bank accounts or personal property. Whether or not bank accounts, personal property or tax returns can be garnished will depend the individual state.

More information can be found by visiting NOLO's guide on garnishments and bankruptcy.

Consumer fraud is a serious problem in Idaho, but, fortunately, it is often a preventable problem. As a consumer, you can protect yourself from fraud by understanding your rights and by making informed and intelligent decisions. There are a variety of steps you can take to protect your credit. 

Please review the Idaho Attorney General's Office Credit and Debt Manual for more information. Please note that this guide was created in 2005 so some information may no longer be accurate. 

If you've ever applied for a credit card, a personal loan, or insurance, there's a file about you. This file is known as your credit report. It includes information on where you live, how you pay your bills, whether you've been sued or arrested, or have filed for bankruptcy. 

Consumer reporting companies sell the information in your report to creditors, insurers, employers, and other businesses with a legitimate need for it. They use the information to evaluate your applications for credit, insurance, employment, or a lease. 

For more information about credit reports, please visit the Federal Trade Commission's Website here: https://www.consumer.ftc.gov/articles/free-credit-reports.

The Department of Justice has created an FAQ on credit counseling - which is separated into six major areas. Consumers, applicants, and approved agencies may find it helpful to review the questions in each area. You can access this information by visiting the Department of Justice Credit Counseling site.

You see the advertisements in newspapers, on TV, and on the Internet. You hear them on the radio. You get fliers in the mail, and maybe even calls offering credit repair services. They all make the same claims but how can you repair your credit without hiring an agency? 

The Federal Trade Commission created a webpage addressing various ways you can improve your credit yourself, please click the link below. 

English: Repairing Your Credit Yourself

Ageing Safely has developed the following three forms to help with consumer law issues or issues dealing with money and debt: 

• Letter to a creditor to request debt forgiveness when a bill is owed
• Letter to a creditor to dispute a charge from a bank or company
• Letter to a credit bureau to dispute an item on a credit report 

Please visit Ageing Safely's website for links to these interactive forms: https://agingsafely.us/free-forms/.

Chances are you rely on your vehicle to get you where you need to go — and when you need to go — whether it’s to work, school, the grocery store, or the soccer field. 

But if you’re late with your car payments, or in some states, if you don’t have adequate auto insurance, your vehicle could be taken away from you. 

The guide below contains information on understanding the rules of vehicle repossession and is available in English or Spanish.

OK, so you can no longer afford your car. What to do? The first idea comes to you after a few intense discussions with your spouse or perhaps after a few beers. “I know, we’ll just give it back.” The next day you call the dealership and tell them why you can’t afford to make payments. 

Fully expecting to hear from that same understanding salesman that threw in the leather and sunroof at “factory” prices, instead you get the third degree about late fees and penalties. “NO, you can’t just turn the car in early, sorry.” 

Whether you’ve financed the purchase or leased, the dealership or lender wants their money and they won’t be shy about asking (suing) for it.

https://www.edmunds.com/car-loan/what-to-do-if-you-cant-make-your-car-payment.html

The Center for Responsible Lending has created a list of five "Signs of Predatory Auto Finance Loans" that you may view below or view on their webpage: https://www.responsiblelending.org/issues/signs-predatory-auto-finance. 

Signs of Predatory Auto Finance Loans 
Don't get into car trouble: Learn to spot predatory auto finance loans. 

Sign 1 - Dealer Kickbacks: A car buyer initially qualifies for a lower interest rate or “buy rate.” The lender willing to fund the loan for the buyer allows the dealer to increase the “buy rate” at the dealer’s discretion. 

The dealer has a powerful incentive to increase the interest rate, as most of the extra interest is “kicked back” to the dealer. 

Sign 2 - Loans Packed With Junk Fees: Dealers inflate the overall price of the car loan through overpriced add-on products – often sold in packages –including “GAP” insurance, vehicle service contracts, credit life and disability insurance, rust proofing, theft deterrent packages, and “window etching.” 

By inflating vehicle cost and loan size, the potential loan kickback for the dealer is increased. 

Sign 3 - “Yo-yo” Sales: The buyer is either convinced to enter into or unwittingly placed in a conditional sale agreement rather than a final sale. After the buyer drives the vehicle home, the dealer later claims to be unable to fund the loan at the agreed-upon terms. 

The buyer is required to return the car and renegotiate an often more costly loan. Often, the buyer is told that their down payment is non-refundable and/or their trade-in has already been sold. 

Sign 4 - Buy Here - Pay Here: Buy Here Pay Here (BHPH) dealerships typically finance used auto loans in-house to borrowers with no or poor credit histories. The average APR is much higher than a bank or credit union loan. 

BHPH dealers expect much higher default and repossession rates. Instead of responsibly financing affordable cars, the business model depends on churning the same vehicles (many would be classified as “lemons”) to local buyers as many times as possible. 

Dealers usually require a disproportionate percentage of the car’s actual value for down payment and pack the loan with unnecessary fees to make more money up front. 

Sign 5 - No Option For Justice In Court: “Mandatory arbitration” clauses essentially waive the customer’s right to sue and appeal in court. In simple terms this means that if you have a valid complaint with a car dealer, you won’t be allowed to take action through a court of law. 

Instead, companies require their customers to pursue complaints through an arbitrator—a process that is more likely to favor the dealer.

Consumer fraud is a serious problem in Idaho, but, fortunately, it is often a preventable problem. As a consumer, you can protect yourself from fraud by understanding your rights and by making informed and intelligent decisions. 

Credit and charge card fraud costs cardholders and issuers hundreds of millions of dollars each year. While theft is the most obvious form of fraud, it can occur in other ways. For example, someone may use your card number without your knowledge. 

It’s not always possible to prevent credit or charge card fraud from happening. But there are a few steps you can take to make it more difficult for a crook to capture your card or card numbers and minimize the possibility.

At times we find ourselves in a difficult situation involving our bank, a large business, etc. and don’t know what to do. Calling customer service hasn’t led to any real results so you may be asking yourself what to do next? Below you will find a number of institutions both governmental and private that specialize in helping you to file a complaint. 

These institutions are similar to leaving a review on Google or Yelp except they work resolve the issue. As such, they are not places for a person to rant and rave about how terrible the service at a restaurant was, but rather to help a person that was a victim of a shady business, or to get help when a financial institution (like a bank) has mistreated someone. 

They are not law enforcement agencies imposing a punishment onto these businesses, but rather helping to add authority to your complaint. 

If your issue cannot be solved after submitting a complaint through one or more of these resources, it is recommended to seek legal help from a private attorney. Review the document below for links to the agencies that may be able to help if you submit a complaint. These agencies include: 

1. Consumer Financial Protection Bureau
2. Help with my Bank
3. Federal Trade Commission Complaint
4. Idaho Attorney General Consumer Protection Complaint
5. Better Business Bureau Complaint

For more information on common financial scams and how to report them to the appropriate agencies or officials, please review our Common Financial Scams Flyer or Brochure below. 

For other information regarding common digital scams, please visit: https://www.seniorlifestyle.com/resources/blog/protect-your-parents-from-common-digital-traps/.

What is Identity Theft? 
Identity Theft is the largest consumer complaint filed with the Federal Trade Commission (FTC) annually. If you have been the victim of identity theft, it could mean someone has used your name to: 

• make purchases
• get credit cards
• rent an apartment or
• obtain utilities without your permission 

In some cases, thieves may have received medical services in your name, re-routed your tax refund, or even impersonated you during contact with law enforcement. 

Identity theft may also include someone using checks on your account. This could be from stealing your checkbook or electronically obtaining access to your checking account. 

Use of an ATM card or credit card that you did not approve is also identity theft. In some cases, identity theft occurs within families to children, seniors, and domestic violence survivors, making reporting and recovery especially difficult. 

How Might Identity Theft Impact Me? 
Even if you are able to resolve a financial identity theft issue with your bank, this use of your name and credit history can result in you getting collection letters for things you did not purchase. 

It can also result in unfavorable entries on your credit report, causing you problems in getting credit or paying a higher interest rate. Becoming the victim of an identity theft can be a complicated and frustrating time in your life. 

What Can I Do? 
The Federal Trade Commission has created letters (in this booklet) that consumers can use to notify a debt collector or credit bureau of the theft of your identity. To use the letters, you must first report the crime of identity theft to the police. 

You do not need to know the name of the person who used your identity. You show the police the debt collection letters or other confirmation that you are the victim of this crime. 

The three forms below use the FTC-created material. You can also visit the National Identity Theft Victims Assistance Network to learn more. 

This material was produced in part by the Maryland Crime Victims' Resource Center, Inc. under award #2010-VF-GX-K030, awarded by the Office for Victims of Crime, Office of Justice Programs, U.S. Department of Justice. 

Neither the U.S. Department of Justice nor any of its components operate, control, are responsible for, or necessarily endorse, these materials including, without limitation, its content, technical infrastructure, and policies, and any services or tools provided. 

For more information on the project or regarding identity theft, you can go to identitytheftnetwork.org.

Idaho Coalition Against Identity Theft seeks to provide a coordinated community response to better assist victims of identity theft in our state. 

WHAT VICTIMS CAN DO 

• Place a Fraud Alert on your credit reports by contacting one of the credit reporting agencies (“CRA’s”) listed on the back of this brochure.
• Request your free credit reports. 
• Call all companies where an account has been misused or opened fraudulently. Close or flag as necessary. Follow up in writing, enclosing an Affidavit. 
• Call your financial institution to review your accounts for suspicious activity. 
• Report to the Federal Trade Commission. File a complaint online at www.ftc.gov. Enclose a copy of the complaint, called an ‘FTC Affidavit,’ with your letters to companies and CRAs. Provide a copy to the police if you file a police report. 
• File a report with Police. Request a police report even if they are unable to investigate further. Ask police to attach your FTC Affidavit to the report. 

To fix mistakes on your credit report, send a copy of the report to each CRA and any company that provided the inaccurate information.

CONTACT INFORMATION FOR ICAIT MEMBERS 

Adult Protection Services, Area Agency on Aging, Area III 208-322-7033 or via https://aging.idaho.gov/aaa/PSA3.html .

Adult Protection investigates allegations of exploitation of vulnerable adults 18 years of age and older. Works with law enforcement to substantiate crimes and has case managers who assist in obtaining support services for elderly clients. Cannot respond after hours but they do have an emergency hotline. Area III covers: Ada, Gem, Canyon, Owyhee, Elmore, Washington, Boise, Adams, Valley, & Payette counties. 

Better Business Bureau Snake River Region 1-800-218-1001 http://snake-river.bbb.org/ 

BBB staff can provide reference materials such as FTC pamphlets, general information and guidance on what to do if ID theft happens to you. The BBB conducts two free shred events every year to help consumers protect their personal information from ID thieves. BBB can do speaking engagements on Identity Theft for businesses and consumers as part of their ongoing outreach. 

Idaho Attorney General’s Office — Consumer Protection Division

Phone: 208-334-2424
Website: www.ag.idaho.gov

The Attorney General’s office can answer basic consumer questions about Idaho’s identity theft laws and can direct consumers to other resources, such as the FTC or law enforcement. The Consumer Protection Division publishes an Identity Theft Manual (available through the AG’s website). The Division’s informal dispute resolution service may assist in some situations involving identity theft-related disputes with consumer reporting agencies or creditors.

The AG’s office cannot provide legal advice or representation to individual consumers; its primary identity theft service is education.

Idaho Department of Finance (DOF)

Phone: 208-332-8000
Website: finance.idaho.gov

DOF staff provide guidance and referrals to people who may be victims of identity theft, including information on how to protect yourself. DOF can also provide speakers for groups interested in presentations about identity theft or other financial services topics.

DOF may provide assistance when identity theft involves a DOF licensee, such as regulated lenders, collection agencies, escrow agencies, mortgage brokers/lenders/loan originators, state-chartered banks and credit unions, credit counselors, debt settlement agencies, securities brokers/agents, money services businesses, and credit repair organizations (but not federally-chartered financial institutions).

Internal Revenue Service (IRS) and Taxpayer Advocate Service (TAS)

IRS Identity Theft Hotline: 1-800-908-4490
Taxpayer Advocate: 1-877-777-4778
Website: www.irs.gov

Victims of identity theft are encouraged to contact the IRS Identity Protection Specialized Unit at 1-800-908-4490. The Taxpayer Advocate Service (TAS) can help resolve tax problems when normal IRS channels are not working for a consumer.

United States Attorney’s Office — District of Idaho

Website: www.justice.gov/usao/id/

The U.S. Attorney’s Office provides services to individuals identified as victims in a case the office is prosecuting. Services may include notification of court proceedings, notice of victims’ rights, victim impact statements, referrals, and (upon request) employer/creditor notification. If someone who is not an identified victim calls seeking information, the office provides limited information and appropriate referrals.

Idaho Legal Aid Services, Inc. (ILAS)
Website: www.idaholegalaid.org

ILAS staff have been trained to guide victims of identity theft. When someone calls any Idaho Legal Aid Services office, they will be told steps they can take and referred to the FTC’s website for additional information and access to the identity theft affidavit.

ILAS does not currently have funding to represent identity theft victims unless the victim qualifies under a grant that allows extended services (for example, a low-income senior or low-income domestic violence survivor).

Idaho State Tax Commission

Phone: 208-334-7660
Website: www.tax.idaho.gov

Tax Commission staff can provide copies of IRS Victims Assistance brochures, Boise Police Department identity theft brochures, and a link to IRS Form 14039. Staff can lock specific Idaho tax accounts to require validation of all returns filed for that Social Security number, which can help prevent false returns.

The Commission cannot disclose an individual’s names or tax information to law enforcement; that information must be requested by the individual, who can then provide it to law enforcement. If the name on a filed tax return or W-2 is different, the information on those documents cannot be disclosed—even to the rightful owner of the Social Security number (the identity theft victim). Victims can request copies of documents showing both their name and Social Security number.

Credit reporting bureaus

Equifax
Address: PO Box 740241, Atlanta, GA 30374
Report fraud: 1-800-525-6285
Website: www.equifax.com

Experian
Address: PO Box 9352, Allen, TX 75013
Report fraud: 1-888-397-3742
Website: www.experian.com

TransUnion
Address: PO Box 6790, Fullerton, CA 92834
Report fraud: 1-800-680-7289
Website: www.transunion.com

Free credit reports

The Fair Credit Reporting Act (FCRA) requires each nationwide consumer reporting company—Equifax, Experian, and TransUnion—to provide a free copy of your credit report, at your request, once every 12 months.

The National Consumer Law Center (NCLC) has created Consumer Advice for Dealing with Debt Collectors. Their webpage covers the following information: 

• Do Not Let Collectors Pressure You
• What Collectors Can Legally Do to Collect on a Debt
• Nine Ways to Stop Debt Collection Harassment
• Illegal Debt Collection Conduct 

This webpage also includes example Cease and Desist or Stop Contact Letters, Exempt Income Letters, Dispute Letter, and Verification Letter to debt collectors. 

Visit the links above or go to https://library.nclc.org/consumer-advice-dealing-debt-collectors%E2%80%94including-new-federal-rules for more information.

Telemarketing is a significant and legitimate business. At the same time, many Idahoans have suffered financial losses due to deception by unscrupulous telemarketers. 

Similarly, Idahoans report that the large number of calls they receive disturbs their peace and interrupts their family life.

If debt is piling up, it's important to remember that you're not alone and that you still have options. Surviving Debt is a free, plain-language guide from the National Consumer Law Center (NCLC) that walks you through practical steps to protect yourself, understand your rights, and decide what to do next. 

Surviving Debt includes clear, actionable information on many of the situations people face when money is tight. 

Topics include: medical debt and dealing with bills and collectors; credit card debt and choosing what to pay first; student loans (including major recent changes and cancellation options); car repossessions; evictions, rental debt, and getting out of a lease; and bankruptcy information. 

It also links to helpful companion resources, like sample letters (including a “stop contact/cease” letter) and other tools you can use. To access it online, you can read it directly on NCLC’s site using their website's direct link.

The National Association of Consumer Advocates has created a series of videos providing information to consumers who are being sued on a debt. You can access those videos here: https://www.consumeradvocates.org/for-consumers/debt-collection.

This guide offers information on how to prepare for your small claims trial as a defendant (the person being sued and responding to the suit). 

For more information on small claims cases or for fillable PDF forms you can use in your small claims case, please visit the Idaho Court Assistance Office's webpage here: https://courtselfhelp.idaho.gov/Forms/claims.

The How to Prepare for Your Small Claims Trial as a Plaintiff (the person suing someone else) guide attached provides information on how to get ready for your trial in court. 

For more information on small claims cases or to find the forms to start your small claims case, please visit the Idaho Court Assistance Office's webpage on small claims here: https://courtselfhelp.idaho.gov/Forms/claims.

The attached How to Serve Your Small Claims Papers by the Idaho Court Assistance Office provides information on how to serve the defendant (the person being sued) in a small claims case. 

For more information on small claims cases or for the forms to file a small claims case, please visit the Idaho Court Assistance Office's webpage regarding small claims here: https://courtselfhelp.idaho.gov/Forms/claims.

This video series answers some common questions that come up during the small claims process, such as: 

• What is service of process?
• How long do I have for service of process?
• What are exhibits?
• Do I need to do anything if I collect from the defendant?
• Will the appeal be just like my first hearing?

Interactive Forms: Interactive forms are free to low income people in Idaho with certain legal issues. Interactive forms allow a person to input information which automatically enters into the appropriate forms. Interactive forms are available on the Idaho Guide & File website. 

Click "Start Your Legal Process" to to generate forms you can use to e-file or print to file in person at your local courthouse. 

If you don’t have all of the required information, you can still use the interactive forms to fill in the information you do have. If you set up a free and confidential user name and password for the interactive forms, you can start your form, save your answers, and finish completing the interactive forms when you have the remaining needed information. 

Or, you can complete as much of the information as possible, take your forms to your local Court Assistance Office, and ask for assistance with filling in the remaining needed information. 

Fillable PDF Forms: These are also available if you prefer not use to the interactive forms process. You may find fillable PDF forms and instructions here: https://courtselfhelp.idaho.gov/Forms/claims. Please view the instructions for each form before filing out the forms.