Archive for August, 2017

Massachusetts AG Sues Student Loan Servicer

On August 23, 2017, Massachusetts Attorney General Maura Healey announced that her office had sued one of the nation’s largest federal student loan servicers, alleging that the servicer deprived public servants of relief under the Public Service Loan Forgiveness Program (PSLF), a federal student loan forgiveness program that forgives loans of borrowers that hold public service positions…

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CFPB Files Complaint Against Private Equity Firm for Predatory Lending Practices for Student Loans

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On August 17, 2017, the Consumer Financial Protection Bureau (“CFPB”) announced that it filed a complaint ​and proposed settlement ​against an Oregon private equity firm and related entities for aiding a post-secondary education company and its school’s predatory lending scheme. The CFPB alleges that the private equity firm enabled the school…

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National Lender Settles False Claims Act Allegations with DOJ for Over $74 Million

​On August 8, 2017, the Department of Justice (DOJ) announced that a national lender agreed to settle allegations that it violated the False Claims Act.  The settlement resolves allegations that the lender originated and underwrote mortgage loans insured by the United States Department of Housing and Urban Development’s (HUD) Federal Housing Administration…

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District Court Rejects Servicer's Argument that CFPB is Unconstitutional

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​On August 4, 2017, the United States District Court for the Middle District of Pennsylvania denied a student loan servicer’s motion to dismiss claims brought against it by the Consumer Financial Protection Bureau (CFPB), rejecting the servicer’s argument that the claims fail because the CFPB is unconstitutional. In January 2017, the…

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Five State Regulators Settle Claims Against Student Loan Debt Collector for $500,000

​On August 10, 2017, the Massachusetts Division of Banks (DOB) announced that it had reached, together with the financial regulators of Connecticut, Idaho, Minnesota, and North Dakota, a settlement with two companies, resolving allegations that their debt collection practices failed to comply with state and federal consumer protection laws, including the Fair Debt…

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NY DFS Obtains $604,000 in Restitution and $500,000 Civil Penalty From Lender Who Failed to Refund Lender Credits

​On August 10, 2017, the New York Department of Financial Services (DFS) announced that it had entered into a consent order with a Missouri-based lender that specializes in mortgage loans guaranteed by the United States Department of Veteran’s Affairs.  According to the consent order, the DFS determined that, between 2011 and 2014, the lender failed…

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CFPB Orders National Bank to Pay $4.6 Million in Civil Penalties for Credit Reporting Practices

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On August 2, 2017, the Consumer Financial Protection Bureau (CFPB) announced that it had entered into a consent order with a national bank, resolving allegations as to the bank’s allegedly unlawful credit reporting activities. According to the CFPB, the bank violated several federal laws with respect to its reporting practices, including the Fair Credit Reporting Act, 15…

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