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Borrowers State Attorneys General

Ballard Spahr LLP

House Financial Services Committee approves ‘trigger leads’ bill

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The House Financial Services Committee has approved a bill that would restrict the use of “trigger leads” in the mortgage industry. ...more

Sheppard Mullin Richter & Hampton LLP

Ohio AG Sues Mortgage Lender for Illegal Broker Steering Scheme

On April 17, Ohio Attorney General Dave Yost announced that the state has filed a lawsuit against a wholesale mortgage lender, alleging that the company engaged in a statewide scheme to mislead borrowers and inflate mortgage...more

Bradley Arant Boult Cummings LLP

Litigation Risk for Mortgage Lenders with a Less Active CFPB

With the recent developments at the Consumer Financial Protection Bureau (CFPB), many mortgage lenders have been left wondering about the extent to which the CFPB will enforce federal laws governing the mortgage lending...more

Cozen O'Connor

CFPB Settles With Mortgage Servicer About Allegedly Misleading Foreclosure Options

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The CFPB reached a settlement with mortgage servicer Fay Servicing, LLC, to resolve allegations that the company took prohibited foreclosure actions against borrowers and prevented borrowers from taking advantage of loss...more

Cozen O'Connor

The State AG Report – 6.6.2024

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Here are curated AG and federal regulatory news stories highlighting key areas in which state and federal regulators’ decisions are having an impact across the US: • Proposed Settlement Between AGs, DOJ, and NCAA Would...more

Cozen O'Connor

Democratic AGs Lend Unwavering Support to Efforts to Waive or Reduce Student Debt

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A coalition of 19 Democratic AGs is calling on the U.S. Department of Education (ED) to move quickly to implement its proposed regulations that would waive or reduce student loan repayment for certain groups of federal...more

Orrick, Herrington & Sutcliffe LLP

State AGs sue to block Biden's SAVE Plan for student loan forgiveness

On April 1, 10 state attorneys general filed a lawsuit in the U.S. District Court for the District of Kansas against President Biden, the Secretary of Education, and the Department of Education seeking to block the enactment...more

Troutman Pepper Locke

Massachusetts AG Settles With Major Student Loan Servicer for $1.8M Over Faulty Notices

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On January 11, Massachusetts Attorney General (AG) Andrea Joy Campbell announced a $1.8 million settlement with Nelnet, Inc. (Nelnet), one of the largest federal student loan servicers in the U.S., for allegedly sending...more

Cozen O'Connor

Vocational Training Program Prehired to Pay Back $4.2 Million, Cancel Outstanding Loans

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A bipartisan coalition of 11 AGs, in conjunction with the CFPB, reached a settlement with the bankruptcy trustee for Prehired, LLC and affiliated entities (collectively, “Prehired”) to resolve allegations that the company...more

Cozen O'Connor

AGs Defend Borrower Defense Rule

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A group of 23 Democratic AGs, led by Massachusetts AG Andrea Joy Campbell, filed an amicus brief in the U.S. Court of Appeals for the Fifth Circuit case Career Colleges and Schools of Texas v. U.S. Department of Education, et...more

Cozen O'Connor

The State AG Report – 10.5.2023

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Here are curated AG and federal regulatory news stories highlighting key areas in which state and federal regulators’ decisions are having an impact across the US: • AGs Go After Timeshare Exit Companies over Allegedly...more

Cozen O'Connor

Federal Student Loan Repayment Resumption Sparks Democratic AG Concern

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A group of 19 Democratic AGs wrote a letter to the President and the Secretary of the U.S. Department of Education asking for stronger protections for borrowers as federal student loan payments resume following a...more

Cozen O'Connor

Multistate AG Coalition Urges Enhancement and Clarification of Federal Student Loan Rules and Processes

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In a letter to Secretary of Education Miguel Cardona and Analyst Jean-Didier Gaina, a coalition of AGs from nineteen states, the District of Columbia and the State of Hawaii Office of Consumer Protection submitted comments on...more

Cozen O'Connor

AG Bonta Applauds Student Loan Program Reforms

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California AG Rob Bonta issued a statement on April 20 applauding an announcement by the U.S. Department of Education detailing plans to address problems in its administration of federal student loan programs....more

Sheppard Mullin Richter & Hampton LLP

FTC Bans Operators of Alleged Debt Relief Scam, $5.3M penalty

On February 28, the FTC announced that the operators of an alleged credit card interest rate reduction scam will be permanently banned from the debt relief industry as part of court orders resolving charges by the FTC and the...more

Troutman Pepper Locke

Navient Settles with State AG Coalition Over Alleged Unfair, Deceptive, and Abusive Student Loan Origination and Servicing...

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On January 13, a coalition of 39 state attorneys general — led by AGs from Pennsylvania, Washington, Illinois, Massachusetts, and California — reached a settlement with student loan servicer Navient over allegedly unfair,...more

Bradley Arant Boult Cummings LLP

A Tale of Two Crises: What 2008 Foreclosures Can Teach Us About Attorney General Enforcement Following COVID-19

Moratoriums on foreclosures due to COVID-19 ended this summer, prompting concerns of a shock similar to the 2008 housing crisis. While there are numerous differences between today and the previous recession, financial service...more

Cozen O'Connor

Colorado Seeks Records From Student Loan Servicer Accused Of Incompetently Administering Federal Loan Forgiveness Program

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Colorado AG Phil Weiser sued federal student loan servicer Pennsylvania Higher Education Assistance Agency d/b/a FedLoan Servicing (“PHEAA”) over allegations that it failed to provide information to student borrowers about...more

Cozen O'Connor

Anti-Discrimination Clarification From CFPB | $110 Million Charity Scam | Deceptive Claims re: CBD Cures

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2022 AG Elections- Kansas Attorney General Eyes Governor’s Mansion- •Kansas AG Derek Schmidt announced his candidacy for the Republican nomination for Governor in 2022. •Schmidt, who first assumed the AG’s office in...more

Cozen O'Connor

Texas Power Companies Investigated Post-Storm | Cryptocurrency Investors Misled| Student Loan Relief

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2022 AG Elections- Republican Candidate Seeks 2022 Rematch Against Minnesota’s Incumbent Attorney General- •Doug Wardlow, general counsel for My Pillow, Inc. and a former state representative, has announced he will...more

Goodwin

NY Attorney General Settles with Debt Collection Company Over Allegedly Unlawful Student Loan Debt Collection Practices

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On September 14, 2020, New York Attorney General Letitia James announced that she secured protections for thousands of student borrowers who defaulted on student loans and who were allegedly subject to misleading and unlawful...more

Goodwin

Financial Services Weekly News: FDIC Issues Deposit Insurance Application Guidance For Non-Banks

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In This Issue. The Federal Deposit Insurance Corporation (FDIC) published new procedures for federal deposit insurance applications from applicants that are not traditional community banks; federal banking regulators released...more

Ballard Spahr LLP

State AGs seek information from ED on discharge of federal loans to former ITT students

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A group of 22 state Attorneys General have sent a letter to the Department of Education seeking information “to determine whether the [ED] is providing relief to thousands of former ITT Tech students as required by federal...more

Ballard Spahr LLP

Developments At The PA Attorney General’s Bureau Of Consumer Protection

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With the creation of a Consumer Financial Protection Unit as one of his early actions, Pennsylvania  Attorney General Josh Shapiro made clear his intention to pursue an aggressive pro-consumer agenda.  Mr. Shapiro named...more

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