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Student Loans Financial Services Industry

Ballard Spahr LLP

CFPB sues student lender Climb Credit

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The CFPB has filed suit against student lender Climb Credit, Inc. and its largest shareholder 1/0 (one zero), alleging that the lender induced students to take out loans by misrepresenting the quality of the training programs...more

Troutman Pepper

Troutman Pepper Weekly Consumer Financial Services Newsletter- October 2024 # 4

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To keep you informed of recent activities, below are several of the most significant federal and state events that have influenced the Consumer Financial Services industry over the past week...more

Orrick, Herrington & Sutcliffe LLP

DC bill establishes protections for student loan borrowers

On October 7, the Council of the District of Columbia enacted B25-0037 or the New Student Loan Borrower Bill of Rights Amendment Act of 2024 (the “Act”), which amends the Department of Insurance and Securities Regulation...more

Goodwin

California Finalizes the Department of Financial Protection and Innovation’s Registration Regulations for Earned Wage Access...

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On October 11, 2024, the California Office of Administrative Law approved the California Department of Financial Protection and Innovation’s (department) final regulations (rule) under the California Consumer Financial...more

Ballard Spahr LLP

CFPB bans private dispute resolution platform Ejudicate from arbitrating consumer financial product disputes

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The CFPB has banned private dispute resolution platform Ejudicate from arbitrating disputes about consumer financial products, saying that the company had misled student borrowers about the company’s neutrality and initiated...more

Wiley Rein LLP

Wiley Consumer Protection Download (October 15, 2024)

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Welcome to Wiley’s update on recent developments and what’s next in consumer protection at the Consumer Financial Protection Bureau (CFPB) and Federal Trade Commission (FTC). In this newsletter, we analyze recent regulatory...more

Ballard Spahr LLP

CFPB focuses on auto finance practices in latest Supervisory Highlights

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On October 7, the CFPB released the Fall edition of its Supervisory Highlights, “Special Edition Auto Finance,” focusing on the auto finance market. The report highlights various supervisory observations and enforcement...more

Cooley LLP

Student Loan Servicing Risks Top CFPB Concerns for Servicemembers, Veterans

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On September 24, 2024, the Consumer Financial Protection Bureau (CFPB) Office of Servicemember Affairs released its 2023 annual report highlighting complaint trends submitted by active-duty servicemembers, veterans and...more

Orrick, Herrington & Sutcliffe LLP

CFPB’s annual Servicemember Report focuses on student loans

On September 24, the CFPB published its annual report from the Office of Servicemember Affairs. The report highlighted difficulties that active duty and veteran students have experienced with student loan servicers, including...more

Orrick, Herrington & Sutcliffe LLP

California’s DFPI takes action against advance fees for student loan debt relief services

On September 17, the California DFPI announced enforcement actions against three companies for allegedly making false representations regarding student loan debt relief and charging fees for providing student loan debt relief...more

Ballard Spahr LLP

CFPB: Number of servicemember complaints increased in 2023

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The Consumer Financial Protection Bureau’s (“CFPB”) Office of Servicemember Affairs Annual Report was released on September 24, 2024, highlighting areas of concern regarding student lending and noting that the number of...more

Orrick, Herrington & Sutcliffe LLP

CFPB says 2024 federal student loan interest rates will cost borrowers

On September 13, the CFPB published a blog post stating that higher student loan interest rates could cost students over $3 billion in the aggregate in additional interest for loans taken out in 2024. The Bureau reported that...more

Husch Blackwell LLP

CFPB Allegations Result in $120 Million Settlement with Navient

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Earlier this month, the Consumer Financial Protection Bureau (CFPB) resolved its long-running lawsuit against Navient Corporation. The enforcement action culminated in a $120 million settlement of which $100 million was in...more

Orrick, Herrington & Sutcliffe LLP

CFPB to ban servicer from federal student loan servicing and pay $120M

On November 12, the CFPB filed a proposed stipulated final judgment and order against a student loan servicer (the defendant) for alleged violations of the CFPA, the FCRA and the FDCPA. As previously covered by InfoBytes, the...more

Troutman Pepper

CFPB Report Highlights Challenges Facing Servicemembers and Veterans, Including Student Loans and Money Transfer/Virtual Currency...

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Yesterday, the Consumer Financial Protection Bureau (CFPB or Burau) released its annual report detailing the financial challenges faced by servicemembers, veterans, and military families. In 2023, this group submitted nearly...more

Sheppard Mullin Richter & Hampton LLP

CFPB Settles Action Against Student Loan Servicer with Industry Ban

On September 12, 2024, the Consumer Financial Protection Bureau (CFPB) filed a proposed order which, if entered by the court, will ban a student loan servicer from servicing federal student loans and require it to pay $120...more

Hudson Cook, LLP

Nonbank Student Loan Servicer Agrees to a CFPB-Imposed Ban and to Pay $120 Million

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After more than seven years of litigation, on September 12, 2024, the CFPB filed the Stipulated Order reflecting its settlement with the Company over alleged violations of the CFPA, FCRA, and FDCPA....more

Orrick, Herrington & Sutcliffe LLP

U.S. SDNY dismisses FDCPA case against student loan trusts for time-barred violations

On August 16, the U.S. SNDY dismissed as time-barred a student loan debt class-action brought against student loan trusts, servicing agents and a law firm. The suit, brought by a class of New York residents holding student...more

Manatt, Phelps & Phillips, LLP

TCPA Suit Tossed Where Plaintiff Not A ‘Called Party’

A Telephone Consumer Protection Act (TCPA) plaintiff who was neither a subscriber of the telephone number nor a customary user of the number failed to state a claim under the statute, a New York federal court has ruled....more

Sheppard Mullin Richter & Hampton LLP

FTC’s Shuts Down Operators of Debt Relief Enterprise

On July 11, the Federal District Court for the Middle District of Florida granted the FTC’s request for a temporary restraining order against operators of a debt relief enterprise that unlawfully charged consumers illegal...more

Hudson Cook, LLP

CFPB Bites of the Month Webinar Recap: The CFPB and the Dust of June

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In this month's article, we share some of our top "bites" covered during the June 2024 webinar....more

Sheppard Mullin Richter & Hampton LLP

Latest CFPB Supervisory Highlights Focus on Transparency in Debt Collection Practices

On July 2, the CFPB released its Summer 2024 Supervisory Highlights, which focused on the servicing and collection of consumer debt. The report shared key findings from recent supervisory examinations of auto and student loan...more

Orrick, Herrington & Sutcliffe LLP

District Court approves $3.65 mil. settlement against student loan servicer

On June 24, the U.S. District Court for the Western District of Pennsylvania approved a class action settlement involving student loan borrowers brought against a student loan servicer....more

Alston & Bird

CFPB Seeks Permanent Enforcement – Will this Further its Repeat Offender Agenda?

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On May 31, 2024, the Consumer Financial Protection Bureau (CFPB) sued student loan servicer Pennsylvania Higher Education Assistance Agency (PHEAA) for illegally collecting on student loans that have been discharged in...more

Orrick, Herrington & Sutcliffe LLP

CFPB sues student loan servicer over discharged student loan collections

On May 31, the CFPB announced its lawsuit against a Pennsylvania-based student loan servicer (the defendant) for allegedly collecting on discharged loans. According to the complaint, the defendant lacked policies and...more

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