On February 20, 2024, Director Samuel Levine of the Federal Trade Commission’s Bureau of Consumer Protection (Bureau) issued a statement promoting the use and acceptance of tolling agreements. Tolling agreements pause the running of statutes of limitations, permitting enforcement agencies such as the Federal Trade Commission (FTC) to file an enforcement action against a party after the deadline otherwise established by the applicable statute.… Continue Reading

In a blog post published earlier this week titled “The CFPB’s enforcement work in 2023 and what lies ahead,” the CFPB discussed its 2023 enforcement activity and highlighted its plans to expand its enforcement capacity in 2024.

The CFPB indicated that in 2023, it filed 29 enforcement actions and resolved through final orders 6 previously-filed lawsuits.  … Continue Reading

The CFPB recently announced the settlement of a bankruptcy court adversary proceeding filed jointly with the Attorneys General of 11 states against Prehired, LLC (Prehired) and two affiliated companies (Prehired Affiliates) for alleged violations of the Truth in Lending Act (TILA), the Fair Debt Collection Practices Act (FDCPA), and the Consumer Financial Protection Act (CFPA) in connection with a vocational training program operated by Prehired and related Income Share Agreements (ISAs) offered by Prehired to students to finance the cost of the program. … Continue Reading

The White House signaled last week that, with the resumption of federal student loan payments, federal student loan servicers can expect to face increased scrutiny. The Department of Education issued a “Framework for Student Loan Servicer Oversight and Accountability to Protect Borrowers” and indicated that “[t]he framework’s strategies help the Department to encourage servicers to better support borrowers and allows the Department to hold their feet to the fire when they have servicing failures.”… Continue Reading

Less than six weeks after the U.S. Supreme Court held that President Biden lacked authority to advance his signature effort to forgive upwards of $430 billion in federal student loans, a new challenge has been filed to other major elements of his higher-education agenda.  On August 4, 2023, the Cato Institute and Mackinac Center for Public Policy filed suit in the Eastern District of Michigan, alleging that the U.S.… Continue Reading

On June 30, 2023, the U.S. Supreme Court announced long-awaited opinions in two cases challenging the Biden Administration’s authority to proceed with its plan to forgive approximately $430 billion in federal student loans.  Most significantly, in Biden v. Nebraska, the Court held that the state of Missouri had standing to challenge the federal action, and that the Biden Administration’s loan cancellation plan was not authorized under the Higher Education Relief Opportunities for Students Act of 2003 (HEROES Act).… Continue Reading

On February 28, 2023, the Supreme Court heard oral argument in two separate cases challenging the Biden Administration’s authority to proceed with its plan to forgive approximately $400 billion in federal student loans.  In the first case, the Biden Administration seeks to vacate an injunction granted by a three-judge panel of the U.S.… Continue Reading

On December 12, 2022, the Supreme Court announced that it would grant a petition for certiorari as to the separate loan-forgiveness challenge pending before the Fifth Circuit Court of Appeals and calendar the matter for argument in February 2023.

On December 1, 2022, the U.S. Supreme Court granted a writ of certiorari to consider the standing of the plaintiffs who obtained an an injunction from the Eighth Circuit Court of Appeals that currently prevents the Biden Administration from enacting its plan to forgive approximately $400 billion in federal student loans. … Continue Reading

On December 1, 2022, the U.S. Supreme Court addressed an application by the Biden Administration to vacate an injunction entered by the Eighth Circuit Court of Appeals that currently prevents the administration from enacting its plan to forgive approximately $400 billion in federal student loans.  Justice Kavanagh—the designated Justice for certain emergency appeals from the Eighth Circuit—referred the Administration’s application to the full Court, which, on its own initiative, converted the application to a petition for writ of certiorari before judgment and granted the petition. … Continue Reading

Yesterday, a three-judge panel of the U.S. Court of Appeals for the Eighth Circuit granted a request to enjoin the Biden Administration’s federal student loan forgiveness program pending resolution of an appeal filed by state attorneys general of six states (Missouri, Arkansas, Nebraska, Iowa, Kansas, and South Carolina), whose challenge to the loan forgiveness plan had been dismissed in October for lack of Article III standing. … Continue Reading