Credit Advisor logo 4

GET OUT OF DEBT WITH NO REGRET

Credit Advisor logo 4

CDC extends eviction moratorium through July

buying-house-mortgage-real-estate-apr-getty

DISCLAIMER: As the COVID-19 public health situation evolves, new regulations are being continually issued. This page/story/information may not include the most recent information.

By John Kruzel 06/24/2021

The Centers for Disease Control and Prevention (CDC) on Thursday announced a one-month extension to the nationwide pause on evictions put in place amid the coronavirus pandemic.

The eviction moratorium, which was set to expire this month, will now last through July under the new order, which is expected to be the final extension, the CDC said.

“The COVID-19 pandemic has presented a historic threat to the nation’s public health,” the CDC said in a statement. “Keeping people in their homes and out of crowded or congregate settings — like homeless shelters — by preventing evictions is a key step in helping to stop the spread of COVID-19.”

The CDC order was enacted in September under then-President Trump and subsequently extended by Congress and President Biden.

The federal moratorium allows tenants who have lost income during the pandemic to protect themselves from eviction by declaring under penalty of perjury that they have made their best effort to pay rent and would face overcrowded conditions if evicted.

The extended protections come as landlords and property owners have sought to evict tens of thousands of cash-strapped renters from their homes and as federal rental aid continues to make its way to needy tenants.

Some state governments, which bear responsibility for distributing more than $45 billion in federally funded rental assistance, have been slow to make disbursements.

A Biden administration official who briefed reporters on background Thursday was unable to provide specific details on how much federal assistance has been provided by states to date, but added that “we are seeing a trajectory of increase.”

The eviction pause has also faced numerous legal challenges, including an emergency petition currently pending at the Supreme Court.

Earlier this month, a group of landlords asked the high court to effectively end the moratorium, writing in a court brief that property owners have lost $13 billion each month under the eviction freeze.

That petition came after a federal judge in Washington, D.C., ruled in May that the moratorium amounted to an unlawful government overreach. But the judge agreed to delay enforcement of that ruling while the Biden administration appealed. A federal appeals court declined to lift the stay.

Judges in other parts of the country have reached various conclusions about the policy’s lawfulness, creating a patchwork of legal interpretations nationwide.

The Justice Department continues to defend the moratorium’s lawfulness in court and earlier this month urged the Supreme Court to reject the landlords’ request to effectively end the policy.

Share on facebook
Facebook
Share on google
Google+
Share on twitter
Twitter
Share on linkedin
LinkedIn
Share on pinterest
Pinterest

Michigan license number:   DM-0016282 Available to the public and licensed in Michigan.

Section 13(1)  When a licensee establishes a debt management plan for a debtor, the licensee may charge and receive an initial fee of $50.00

Section 13(2)  A licensee shall attempt to obtain consent to participate in a debt management plan from at least 51%, in number or dollar amount, of the debtor’s creditors within 90 days after establishing the debt management plan. If the required consent is not actually received by the licensee, the licensee shall provide notice to the debtor of the lack of required consent and the debtor may, at its option, close the account. If the debtor decides to close the account, any unexpended funds shall be returned to the debtor or disbursed as directed by the debtor.

Sec. 14. (1) A contract between a licensee and debtor shall include all of the following:

(a) Each creditor to which payments will be made and the amount owed each creditor. A licensee may rely on records of the debtor and other information available to it to determine the amount owed to a creditor.

(b) The total amount of the licensee’s charges.

(c) The beginning and termination dates of the contract.

(d) The principal amount and approximate interest charges of the debtor’s obligations to be paid under the debt management plan.

(e) The name and address of the licensee and of the debtor.

(f) Any other provisions or disclosures that the director determines are necessary for the protection of the debtor and the proper conduct of business by a licensee.

Sec. 18. (1) In addition to the fee described in section 13(1), a licensee may charge a reasonable fee for providing debt management services under a debt management plan. The fee under this subsection shall not exceed 15% of the amount of the debt to be liquidated during the express term of the plan.

(2) A licensee may offer a debtor the option to purchase credit reports or educational materials and products, and charge a fee to the debtor if the debtor elects to purchase any of those items from the licensee.  Fees charged under this subsection are not subject to the 15% limitation on fees described in subsection (1).

(3) Except for a cancellation described in subsection (4), in the event of cancellation of or default in the performance of the contract by the debtor before its successful completion, a licensee may collect $25.00 in addition to any fees and charges of the licensee previously received by the licensee. This $25.00 fee is not subject to the 15% limitation on fees and charges under subsection (1).

(4) A contract is in effect when it is signed by the licensee and the debtor and the debtor has made a payment of any amount to the licensee. The debtor has the right to cancel the contract until 12 midnight of the third business day after the first day the contract is in effect by delivering written notice of cancellation to the licensee. A cancellation described in this section is not subject to, and a licensee shall not collect, the fee described in subsection (3).

(5) If a debtor fails to make a payment of any amount to a licensee within 60 days after the date a payment is due under a contract, the licensee may, in its discretion, cancel the debt management contract if it determines that the plan is no longer suitable for the debtor, the debtor fails to affirmatively communicate to the licensee the debtor’s desire to continue the plan, or the creditors of the debtor refuse to continue accepting payments under the plan.

(6) A licensee shall not contract for, receive, or charge a debtor an amount greater than authorized by this act. A person that violates this subsection, except as the result of an inadvertent clerical or computer error, shall return to the debtor the amount of the payments received from or on behalf of the debtor and not distributed to creditors, and, as a penalty, an amount equal to the amount overcharged.

530 W Allegan Street, 7th Floor
Lansing, MI  48909-7720
877-999-6442

Credit Advisor Logo 3

Schedule a Call Back

Credit Advisor Logo 3

Get Help Now!