Search Results: test Student Loans

CFPB Settles With National Bank Over Student Lending Practices for $6.5 Million

​On November 21, 2017, the Consumer Financial Protection Bureau (CFPB) announced that it had entered into a consent order with a national bank, resolving allegations over the bank’s allegedly harmful student loan servicing practices and requiring it to pay millions in consumer relief and civil penalties. ​ According to the CFPB, the bank engaged…

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Pennsylvania AG Files Suit Against Nationwide Student Loan Provider and Servicer

​On October 5, 2017, the Pennsylvania Attorney General’s Office (AG) announced that it had filed suit against a federal student loan provider and servicer (and its subsidiary) in the U.S. District Court for the Middle District of Pennsylvania, alleging violations of the Consumer Financial Protection Act (CFPA) and Pennsylvania Unfair Trade Practices and Consumer…

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UPDATE: CFPB's $21.6 Million Settlement Concerning Student Loan Servicing and Debt Collection in Doubt

As Enforcement Watch reported in late September, the Consumer Financial Protection Bureau (“CFPB”) announced that it had filed a proposed consent judgment in the United States District Court for Delaware to resolve claims relating to the servicing and debt collection activities on a portfolio of about 800,000 student loans.  Under the proposed settlement agreement, the student loan trusts…

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CFPB, Student Loan Securitizer, and Debt Collector Agree to Combined $21.6 Million Settlement for Alleged Illegal Collection Practices

On September 18, 2017, the Consumer Financial Protection Bureau (“CFPB”) announced that it had entered into a settlement and proposed consent judgment with a student loan owner and securitizer, and a separate consent judgment with the securitizer’s debt collector.  The securitizer has a loan portfolio of approximately 800,000 student loans.  According…

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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

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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District Court Rejects Servicer's Argument that CFPB is Unconstitutional

​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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