Consumer Bankruptcy, Consumer Financial Products

CFPB Files Suit Against Student Loan Servicer

Goodwin on 6/1/2024

On May 31, 2024, the CFPB announced that it had filed suit against a Pennsylvania-based student loan servicer for engaging in allegedly unfair, deceptive and abusive acts or practices in violation of the CFPA, 12 U.S.C. §§...more

Consumer Financial Services 2023 Year in Review and A Look Ahead

Troutman Pepper on 2/1/2024

We are pleased to share our annual review of regulatory and legal developments in the consumer financial services industry. With active federal and state legislatures, consumer financial services providers faced a challenging...more

CFPB settles claims against operator of training program arising out of income share agreements

Ballard Spahr LLP on 12/1/2023

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)...more

Delaware Bankruptcy Court Enters $30M Stipulated Judgment Over Deceptive Student Loan Practices

Troutman Pepper on 11/30/2023

On November 20, Delaware Attorney General (AG) Kathy Jennings, along with the Consumer Financial Protection Bureau (CFPB) and 11 other states, announced a settlement in excess of $30 million with Prehired LLC and affiliated...more

Breaking Down Biden's Student Debt Relief Plan

Brownstein Hyatt Farber Schreck on 9/1/2022

On Wednesday, Aug. 24, President Biden announced a three-part plan to provide student loan debt relief to tens of millions of Americans. The student loan debt relief plan includes the following components: (1) a final...more

The Means Test

Freeman Law on 8/12/2022

The Means Test was a change that was added by the 2005 changes to the bankruptcy law. It’s designed to force those that make over a certain amount to file a Chapter 13 bankruptcy instead of Chapter 7 under the theory that if...more

The Future of Student Loans and Bankruptcy – Is There a Bubble Waiting to Burst?

Epiq on 9/15/2021

In March 2021, the U.S. Department of Education noted that student loan borrowers owed $1.6 trillion federal and private loans. For many, loans are the only option to attend a U.S. university or college for undergraduate,...more

All Consuming - Financial Litigation Insights: Issue 5, September 2020

Spilman Thomas & Battle, PLLC on 9/18/2020

Three Important Ways the COVID-19 Pandemic is Changing the Delivery of Consumer Financial Services - The world continues to come to grips with the daily changes brought by the COVID-19 pandemic. Schools contemplate...more

Tenth Circuit Affirms Order Allowing Discharge of Private Student Loans

Troutman Pepper on 9/8/2020

On August 31, 2020, the Tenth Circuit affirmed the United States Bankruptcy Court for the District of Colorado’s holding that certain student loans not guaranteed by a governmental unit may be discharged in bankruptcy....more

All Consuming - Financial Litigation Insights: Issue 4, August 2020

Spilman Thomas & Battle, PLLC on 8/10/2020

Welcome! Welcome to August’s issue of All Consuming. This month, we are taking a deep dive into discharges in bankruptcy and then reviewing several top news stories in the world of consumer finance. We hope you find value...more

The Discharge in Bankruptcy - Open Avenues for Consumer Creditors

Spilman Thomas & Battle, PLLC on 8/6/2020

In a typical consumer bankruptcy, a debtor seeks the benefit of two concepts. First, the debtor seeks the breathing room afforded that debtor by the automatic stay. Second, the debtor seeks to discharge all debt obligations...more

Madden Progeny Update

Orrick, Herrington & Sutcliffe LLP on 3/10/2020

The Second Circuit’s decision in Madden v. Midland Funding, LLC was announced in 2015. Since that time, there have been a number of cases brought based on the Second Circuit opinion, as well as recent regulatory proposals...more

Seventh Circuit Agrees With Mayer Brown Amicus Brief That $3 Million Punitive Damages Award Was Unconstitutionally Excessive

Mayer Brown on 2/12/2020

Last summer, my colleague C.J. Summers and I posted a report about Saccameno v. U.S. Bank National Association, a Seventh Circuit case in which we had filed an amicus brief on behalf of the Chamber of Commerce of the United...more

Appeal Filed From Bankruptcy Court’s Decision Granting Discharge of Student Loan Debt

Ballard Spahr LLP on 2/12/2020

Education Credit Management Corporation (“ECMC”), the guarantor of the student loan debt ruled dischargeable last month by the Chief Judge of the United States Bankruptcy Court for the Southern District of New York, is...more

Bankruptcy Court Discharges Student Loan Debt

Ballard Spahr LLP on 1/22/2020

On January 7, 2020, Chief United States Bankruptcy Judge Cecilia G. Morris of the United States Bankruptcy Court for the Southern District of New York issued a notable opinion in the case of Rosenberg v. N.Y. State Higher...more

5th Circuit Joins the Growing Crowd Holding that Private Student Loans May be Dischargeable in Bankruptcy

Bradley Arant Boult Cummings LLP on 11/5/2019

The Fifth Circuit’s recent decision in Crocker v. Navient Solutions is a stark reminder to for-profit student lenders and servicers that bankruptcy caselaw continues to evolve relating to discharge. In Crocker, the Fifth...more

Real Property, Financial Services, & Title Insurance Update: Week Ending October 4, 2019

Carlton Fields on 10/31/2019

Real Property Update - Foreclosure / Bankruptcy / Surrender: borrower cannot challenge judgment of foreclosure entered upon judicial notice of his statement of intention to surrender the property and order of discharge...more

Financial Services & Title Insurance Update: Week Ending October 11, 2019

Carlton Fields on 10/23/2019

Financial Services Update - Title Insurance Coverage: where an accurate survey would have shown that seller had abandoned access and parking easement, which had been built upon by a neighbor, title insurer had no duty to...more

Court Concludes That Bankruptcy Discharge Does Not Affect Arbitration Clause

Carlton Fields on 9/18/2019

The Eastern District of Pennsylvania recently granted a creditor’s request to compel arbitration over a plaintiff’s argument that the arbitration agreement he had signed was void as a result of a bankruptcy court discharging...more

A Dream or a Nightmare? Who pays in a world without student loans?

Womble Bond Dickinson on 8/14/2019

Anyone who hasn’t heard about the “student loan crisis” in the U.S. hasn’t been paying attention. U.S. student loan debt is estimated to range from between $1.2 and $1.6 trillion with more than seven million borrowers in...more

Bankruptcy Straight-Talk For Credit Union Members

Smith Debnam Narron Drake Saintsing & Myers,... on 2/27/2018

Bankruptcy is not a sure-fire remedy for credit union members in severe financial distress. While it can provide an avenue for escaping your promises to repay, it can also have some unintended, disagreeable consequences. I...more

Education Dept. seeks comment on factors used to evaluate student loan discharge claims in bankruptcy cases

Ballard Spahr LLP on 2/22/2018

The Department of Education has published a request for information in yesterdays Federal Register seeking comment on the factors used to evaluate claims of undue hardship made by student loan borrowers attempting to...more

U.S. District Court for the Southern District of Florida Narrows the Definition of Borrower Under RESPA

Ballard Spahr LLP on 1/23/2018

In 2014, the Consumer Financial Protection Bureau (CFPB) promulgated a number of mortgage servicing rules, including rules governing loss mitigation procedures. ...more

New Bankruptcy Rules that Creditors Need to Know and Follow

Ward and Smith, P.A. on 12/12/2017

On December 1, 2017, several changes to the Federal Rules of Bankruptcy Procedure took effect. The changes involve consumer cases under Chapter 13 and affect creditors with secured claims, unsecured claims, and judgment liens...more

Real Property, Financial Services, & Title Insurance Update: Weeks Ending October 6 & 13, 2017

Carlton Fields on 10/18/2017

REAL PROPERTY UPDATE FINANCIAL SERVICES UPDATE - Ad Valorem Taxes: land lease holders are considered equitable owners of land for tax purposes if land lease renews automatically and is perpetual; owners of condominium...more

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