Several civil rights groups have sent a letter to Director Kraninger questioning whether the CFPB is engaging in the oversight of the student loan market that they believe is necessary to “root out potentially discriminatory...more
Democratic Senator Elizabeth Warren, together with Democratic Representatives Ayanna Pressley and Katie Porter, have sent a letter to the Department of Education expressing concern about reports that the Department “is...more
A new report issued by the Government Accountability Office titled, “Private Student Loans: Clarification from CFPB Could Help Ensure More Consistent opportunities and Treatment for Borrowers,” calls on the CFPB to provide...more
As recently reported, the Washington, D.C. Department of Insurance, Securities, and Banking (DISB) published a Bulletin in late April reminding those who service student education loans in the District of Columbia of their...more
In a letter sent to Senator Elizabeth Warren regarding the CFPB’s supervision of student loan servicers, CFPB Director Kathy Kraninger discussed the Bureau’s relationship with the Department of Education....more
The Washington, D.C. Department of Insurance, Securities, and Banking (DISB) has published a Bulletin reminding those who service student education loans in the District of Columbia of their obligation to file an annual...more
The FDIC and the Federal Reserve Board of Governors issued a joint advisory to make financial institutions aware of a 2018 amendment to the Fair Credit Reporting Act that provides that a financial institution may, but is not...more
The Federal Reserve Board announced last week that it was launching a new article series, Consumer & Community Context, that features original analysis about the financial conditions and experiences of consumers and...more
The CFPB is facing criticism for not yet having issued the 2018 annual report of its Student Loan Ombudsman. The 2017 annual report was issued in October 2017 and, like previous reports, included student loan complaint data...more
The “borrower defense” final rule (Final Rule) issued by the Dept. of Education in November 2016 took effect at noon Wednesday, after Judge Randolph D. Moss of the D.C. federal district court refused to grant the renewed...more
10/19/2018
/ Arbitration ,
Borrower Defense Rule ,
Class Action ,
Class Action Arbitration Waivers ,
Consumer Financial Products ,
Department of Education ,
Federal Student Loans ,
Higher Education Act ,
Rulemaking Process ,
Student Loans ,
Title IV
A report issued last week by the U.S. Treasury Department recommends sweeping regulatory changes intended to promote innovation in the consumer financial services market, reduce regulatory burdens on consumer financial...more
8/8/2018
/ Consumer Financial Products ,
Consumer Information ,
Data Security ,
Debt Collection ,
Financial Services Industry ,
FinTech ,
Innovation ,
Non-Bank Lenders ,
Online Marketplace Lending ,
Reassigned Phone Numbers ,
Regulatory Agenda ,
Regulatory Oversight ,
Regulatory Requirements ,
Special Purpose National Bank Charter ,
Student Loans ,
TCPA ,
True Lender ,
U.S. Treasury ,
Valid When Made Doctrine
The Department of Education has issued a proposal that would rescind the “Borrower Defense” final rule issued by the ED in November 2016 and replace it with the “Institutional Accountability regulations” contained in the...more
7/31/2018
/ Arbitration ,
Arbitration Agreements ,
Borrower Defense Rule ,
Class Action Arbitration Waivers ,
Department of Education ,
Educational Institutions ,
Higher Education Act ,
Popular ,
Pre-Dispute Arbitration ,
Proposed Rules ,
Student Loans ,
Title IV
The Consumer Financial Protection Bureau (CFPB) has issued a new report, Data Point: Final Student Loan Payments and Broader Household Borrowing, which examines repayment patterns for student loans and how borrowers who have...more
According to media reports, CFPB Acting Director Mick Mulvaney has sent an email to Bureau staff indicating that he plans to fold the Office of Students and Young Consumers into the Office of Financial Education. Both...more
The U.S. Senate on March 14 passed S.2155, the Economic Growth, Regulatory Relief, and Consumer Protection Act (the Act), by a vote of 67 to 31. Although the Act would not make the sweeping changes to the Dodd-Frank Act found...more
3/16/2018
/ Appraisal ,
Banking Sector ,
Consumer Financial Protection Bureau (CFPB) ,
Dodd-Frank ,
Financial Institutions ,
Financial Regulatory Reform ,
FIRREA ,
FSOC ,
HMDA ,
Legislative Agendas ,
Mortgages ,
Online Marketplace Lending ,
Orderly Liquidation Authority ,
PACE ,
Proposed Legislation ,
Regulatory Oversight ,
Student Loans ,
TILA-RESPA Integrated Disclosure Rule (TRID) ,
Truth in Lending Act (TILA)
The New York Education Department (NYED) has issued a ruling which states that the Bureau of Proprietary School Supervision (BPSS) will not permit an enrollment agreement, including an arbitration clause, to infringe on the...more
2/27/2018
/ Arbitration ,
Arbitration Agreements ,
Career Development ,
Department of Education ,
Educational Institutions ,
Financial Aid ,
Higher Education Act ,
Jurisdiction ,
Regulatory Oversight ,
State and Local Government ,
Student Enrollment ,
Student Loans ,
Title IV ,
Training
The Department of Education has published a request for information in yesterdays Federal Register seeking comment on the factors used to evaluate claims of undue hardship made by student loan borrowers attempting to...more
The District of Columbia Department of Insurance, Securities, and Banking (DISB) has released for comment a revised “Student Loan Borrower’s Bill of Rights.” ...more
The FTC has filed a lawsuit in a California federal district court against three interrelated student loan debt relief companies and the individual who is their majority owner for alleged violations of Section 5 of the FTC...more
2/9/2018
/ Consumer Financial Products ,
Consumer Financial Protection Bureau (CFPB) ,
Debt Relief ,
Debt-Relief Industry ,
Enforcement Actions ,
Federal Trade Commission (FTC) ,
Financial Services Industry ,
FTC Act ,
Injunctions ,
Redress Payments ,
Regulatory Violations ,
Section 5 ,
Student Loans ,
Telemarketing Sales Rule
The Illinois House of Representatives and Senate have voted to override the veto by the state’s Republican governor of Senate Bill 1351, known as the Illinois Student Loan Servicing Rights Act. ...more
11/10/2017
/ Congressional Override ,
Consumer Complaint Management ,
Consumer Financial Products ,
Financial Services Industry ,
Governor Vetoes ,
Licensing Rules ,
New Legislation ,
Ombudsman ,
State and Local Government ,
Student Loans ,
Unfair or Deceptive Trade Practices
The CFPB has issued a “50-state snapshot of student debt,” which provides student debt data on a state-by-state basis.
The report states that the complaint data “reflects over 50,000 student loan complaints and over 10,000...more
The District of Columbia Student Loan Ombudsman Establishment and Servicing Regulation Act of 2016 (Servicing Act) became effective February 18, 2017. The Servicing Act set an October 1 deadline for the Student Loan...more
10/25/2017
/ Banking Sector ,
Borrowers ,
Consumer Bill of Rights ,
Consumer Financial Products ,
Consumer Lenders ,
Federal Student Loans ,
Financial Services Industry ,
Higher Education Act ,
New Legislation ,
Ombudsman ,
Preemption ,
Regulatory Oversight ,
State and Local Government ,
Student Loans ,
Transparency
The CFPB has released the sixth annual report of the CFPB Student Loan Ombudsman containing an analysis of approximately 12,900 federal student loan complaints, 7,700 private student loan complaints, and 2,300 debt collection...more
10/20/2017
/ Annual Reports ,
Banking Sector ,
Consumer Complaint System ,
Consumer Financial Products ,
Consumer Financial Protection Bureau (CFPB) ,
Debt Collection ,
Federal Student Loans ,
Military Service Members ,
Ombudsman ,
Servicemembers Civil Relief Act (SCRA) ,
Student Loans
Last Friday, as expected, the FTC announced the launch of a coordinated federal-state law enforcement initiative targeting deceptive student loan debt relief companies. ...more
A recent flurry of FTC enforcement activity targeting companies offering student loan debt relief services suggests such companies could be the subject of the announcement scheduled for tomorrow “of a major coordinated...more