On September 29, 2022, the Attorneys General of Arkansas, Iowa, Kansas, Missouri, Nebraska, and South Carolina filed a complaint in the U.S. District Court for the Eastern District of Missouri against President Biden, Secretary of Education Miguel Cardona, and the U.S. Department of Education (4:22-cv-01040) seeking to halt implementation of the Biden Administration’s student loan relief plan announced on August 24, 2022.… Continue Reading
student debt relief
CFPB enters into another proposed settlement with company and individuals offering student loan debt relief services
By Heather S. Klein on
The CFPB announced that it has entered into a proposed settlement with a company and its three owner/officers for allegedly charging unlawful advance fees in violation of the Telemarketing Sales Rule (TSR) and the Consumer Financial Protection Act (CFPA) in connection with their student loan debt relief business.
The complaint alleges that the company, Timemark Solutions, violated the TSR and CFPA by charging and collecting advance fees before consumers had received any adjustment of their student loans or made any payments toward such adjusted loans.… Continue Reading
CFPB files lawsuit against companies and individuals involved in offering student debt relief services
By John L. Culhane, Jr. on
Posted in CFPB Enforcement, Regulatory and Enforcement
The CFPB filed a complaint last week in a California federal district court against several companies and individuals involved in offering student loan debt relief services for allegedly obtaining consumer reports unlawfully, charging unlawful advance fees, and engaging in deceptive conduct. (Several companies and individuals are named only as “relief defendants” for having allegedly received funds traceable to the other defendants’ alleged violations.)… Continue Reading
NYDFS Student Lending Initiative
By Taylor R. Gess on
New York Department of Financial Services (NYDFS) Superintendent, Linda A. Lacewell, recently wrote an Opinion Article in the New York Daily News, addressing the student lending industry. According to Lacewell, the Trump administration and Education Secretary Betsy DeVos have “dismantled critical consumer protections available to students” and “gutt[ed]” the Consumer Financial Protection Bureau’s student lending office.… Continue Reading
CFPB settles with another student debt relief company
By Barbara S. Mishkin on
Posted in CFPB Enforcement, Regulatory and Enforcement
The CFPB announced it has entered into a consent order with Student Aid Institute, Inc., a student debt relief company, and its chief executive officer. The order settles charges that the company and CEO violated the Telemarketing Sales Rule, the Consumer Financial Protection Act prohibition of unfair, deceptive or abusive acts or practices, and Regulation P (which implements the Gramm-Leach-Bliley Act) by conduct that included falsely representing an affiliation with the U.S.… Continue Reading