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Loan defaults surge, and the banks that issued the loans get into trouble.
He is seeking to release them from bad loans, get compensation for excessive charges and impose punitive damages.
Tim Breedon, the outgoing chief executive of Legal and General, has proposed that loans get aggregated into jumbo bonds that could be bought and sold by large investors.
By comparison, Mr. Merrill said, a $500 loan from a storefront payday lender would typically cost $90 for two weeks, but most loans get rolled over.
But in the United States, where fraudulent savings and loans get bailouts and cities fend for themselves, Washington is lying low.
"New student loans get taken out all the time, so there are always in theory newer loans the government could sell on," said a source.
Similar(39)
Fewer foreclosures meant more loans got stuck in the purgatory known as "seriously delinquent".
The value of outstanding debts, such as mortgages and car loans, gets bigger every year.
She worked her way through Ohio State and, eager to pay off her college loans, got a job selling copiers.
"The individuals who were getting the loans got the benefit of the loan but were also at risk in ways that were unfair to them," he said.
And Lewis explains pithily what he found: A giant number of individual loans got piled up into a tower.
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Justyna Jupowicz-Kozak
CEO of Professional Science Editing for Scientists @ prosciediting.com