CFPB, Federal Agencies, State Agencies, and Attorneys General
The bill signed into law by President Biden on June 17, 2021 to create the Juneteenth National Independence Day results in an important change under the Truth in Lending Act (TILA) and Regulation Z.
Under TILA and Regulation Z, there are two definitions of “business day.” One definition is “a day on which the creditor’s…
After reviewing the existing types of federal student loans and forgiveness programs, we discuss the current political debate over forgiveness, including the Education Dept.’s upcoming analysis of the President’s forgiveness authority and other analyses of such authority, potential legal sources of such authority, and how courts might respond to challenges to any Presidential action to…
The Department of Education has announced that it has selected former CFPB Director Richard Cordray as the Chief Operating Officer of Federal Student Aid. In addition to having served as CFPB Director, Mr. Cordray formerly served as Ohio Attorney General.
Rohit Chopra, President Biden’s nominee for CFPB Director, previously served as the CFPB’s Private Education…
The California Department of Financial Protection and Innovation announced last week that it has entered into a consent order with Lambda, Inc., which does business as Lambda School, to settle the DFPI’s claims that a provision in Lambda’s student financing contracts was misleading. The consent order also resolves the DFPI’s claim that Lambda’s marketing materials…
The Pennsylvania Attorney General recently entered into an Assurance of Voluntary Compliance with Elevation Capital Partners, LLC, a buyer of private student loans, that prohibits Elevation from engaging in any collection efforts, directly or through servicers, related to loans made to Pennsylvania borrowers who attended schools operated by Education Corporation of America (ECA) (ECA Loans). …
The CFPB has created a student loan infographic to highlight the state of student loans in the pandemic. Among the statistics included in the infographic is that, based on Department of Education data current as of September 2020, 87% of federal student loan borrowers had their federal student loans in administrative forbearance.
The CFPB published…
The Department of Education announced last week that it is changing how it determines relief for borrowers who assert “borrower defense claims.” Such claims allege that the borrower was misled by his or her school or that the school engaged in other misconduct in violation of certain laws. Borrower defense claims only apply to federal…
In its third lawsuit filed under the leadership of Acting Director Uejio, the CFPB, earlier this week, sued Student Loan Pro (SLP), a student loan debt relief company, its owner, and its manager, for alleged violations of the Telemarketing Sales Rule (TSR) and the Consumer Financial Protection Act. The CFPB’s complaint, which was filed …
The California Department of Financial Protection and Innovation (DFPI) announced last week that it has launched an investigation into whether student-loan debt-relief companies operating in California are engaging in illegal conduct under the California Consumer Financial Protection Law (CCFPL) and Student Loan Servicing Act (SLSA).
Since the CCFPL became effective on January 1, the DFPI…
In response to directions from the Biden Administration, the following actions have been taken:
Federal student loans. The Acting Secretary of Education has extended the following relief on ED-held federal student loans until September 30, 2021:
Foreclosures and Evictions. HUD…
