News & Analysis as of

Debt-Relief Industry Consumer Financial Products

Orrick, Herrington & Sutcliffe LLP

CFPB orders debt relief servicer to pay $400,000 for charging advanced fees

On May 20, the CFPB released its consent order and stipulation against a debt relief provider for alleged deceptive acts and practices in violation of the CFPA and for alleged deceptive telemarketing practices and collection...more

Hudson Cook, LLP

CFPB Issues Order Against Student Loan Debt Relief Telemarketer

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On May 20, 2024, the CFPB announced a settlement with a telemarketing company that offers student loan debt relief services to resolve allegations that it violated the Telemarketing Sales Rule ("TSR") and the Consumer...more

Hudson Cook, LLP

CFPB Bites of the Month - February 2024 - "I Got You, CFPB".

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In this month's article, we share some of our top "bites" covered during the February 2024 webinar....more

Ballard Spahr LLP

FTC bans group of student loan debt relief scammers from the debt relief industry

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The Federal Trade Commission (“FTC”) recently entered into proposed stipulations with a group of student loan debt relief providers to resolve allegations that the group conducted deceptive marketing and sales practices in...more

Hudson Cook, LLP

CFPB Settles Decade-Long Case Against Foreclosure Relief Company and Four Attorneys for $12 million

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On February 8, 2024, after nearly a decade of litigation, the CFPB announced a final settlement for a total of $12 million with a Foreclosure Relief Company and four individual attorneys. The settlement resolves litigation...more

Ballard Spahr LLP

Consumer Finance Monitor Podcast Episode: Recent Developments Affecting Student Loan Origination and Servicing

Ballard Spahr LLP on

With federal student loans approaching $1.7 trillion, private student loans approaching $129 billion, strident consumer group advocacy, and national elections on the horizon, student loan origination and servicing continues...more

Hudson Cook, LLP

CFPB Bites of the Month - 2023 Annual Review - Student Lending

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In this article, we share a timeline of our monthly "bites" for 2023 applicable to student lending along with some information related to financial products and services offered to students....more

Spilman Thomas & Battle, PLLC

Biden's Reforms and 813,000 Student-Loan Borrowers

The White House recently announced that approximately 813,000 borrowers whose accounts were adjusted in August 2023 will receive an email from President Biden that their loans are being forgiven. This is based on the U.S....more

Bricker Graydon LLP

BDR Activity on the Rise Amid Unclear Rules and an Executive Effort to Delete Student Loan Debt; Who will Pay the Tab?

Bricker Graydon LLP on

Borrower Defense to Repayment (BDR) refers to the administrative process by which borrowers apply to the U.S. Department of Education (ED) to have their federal Direct Loans discharged based on allegations of school...more

Troutman Pepper

Troutman Pepper Weekly Consumer Financial Services Newsletter - October 2023 #2

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To keep you informed of recent activities, below are several of the most significant federal and state events that have influenced the Consumer Financial Services industry over the past week...more

Cozen O'Connor

State AG Pulse | Action By MN AG Ellison Could Ripple Through Debt Servicing Industry

Cozen O'Connor on

Student loans have been much in the news and with federal loan payments restarting next month. Chris Allen and Keturah Taylor take a dive into the debt servicing world. They contend that an investigation by Minnesota AG Keith...more

Goodwin

CFPB Sends Approximately $22 Million in Refund Checks to Victims of Credit Card Debt Relief Scams

Goodwin on

On May 5, 2023, the CFPB announced it would be sending $22.3 million in refund checks to consumers who lost money in credit card relief schemes. The CFPB sent 6,523 refund checks to damaged consumers...more

Hudson Cook, LLP

CFPB Bites of the Month - May 2023 - May I Have Another, CFPB

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In this month's article, we share some of our top "bites" for the prior month covered during the May 2023 webinar....more

Shipkevich PLLC

CFPB Issues Proposed Rule Imposing Reporting Requirements on Certain Non-Bank Entities: Possible Implications for Money...

Shipkevich PLLC on

On December 12, 2022, the Consumer Financial Protection Bureau (CFPB) issued a proposed rule pursuant to its authority under the Consumer Financial Protection Act of 2010 (CFPA). This rule would require certain non-bank...more

Goodwin

Minnesota AG Enters into Consent Order with Student Debt Relief Company

Goodwin on

On November 18, 2022, the Minnesota Attorney General’s Office (Minnesota AG) announced that it entered into a consent order with a California student-loan debt-relief company to resolve allegations that the company illegally...more

Akin Gump Strauss Hauer & Feld LLP

Biden-Harris Administration Announces New Guidelines for the Discharge of Federal Student Loans

Last week, the Department of Justice (DOJ) and the Department of Education (DOE) distributed guidance to the legal community clarifying the process for the discharge of federal student loans in bankruptcy proceedings. The...more

Akin Gump Strauss Hauer & Feld LLP

Federal Appeals Court Temporarily Blocks the Biden-Harris Administration’s Student Debt Relief Plan: Secretary Cardona Responds...

Late on Friday, October 21, the 8th Circuit Court of Appeals issued a stay of the Biden-Harris administration’s Student Debt Relief Plan while it considers a lawsuit brought by six Republican state attorneys general to block...more

Akin Gump Strauss Hauer & Feld LLP

Supreme Court and U.S. District Court Reject Legal Bids Contesting the Biden-Harris Administration’s Student Debt Relief Program

On Thursday, October 20, the Biden-Harris Administration’s Student Debt Relief Program prevailed in two early legal cases challenging the plan. Justice Amy Coney Barrett denied an emergency bid to obstruct the program from a...more

Akin Gump Strauss Hauer & Feld LLP

White House Releases Additional Information Regarding Federal Student Loan Forgiveness Plan: Applications Available in October;...

On Thursday, September 29, the Biden-Harris administration and the Department of Education (DOE) released two updates to the three-part student debt relief plan they announced in August. These updates include guidance on...more

Venable LLP

FTC Joins with California DFPI to Obtain Asset Freeze Against Mortgage Relief Business

Venable LLP on

​​​​​​​Last week, the Federal Trade Commission turned its attention to the mortgage relief industry once again. In its most recent enforcement action, the FTC joined forces for the first time with the California Department of...more

Hudson Cook, LLP

CFPB Announces Enforcement Action Against the Owner of a Student-Loan Debt Relief Company over Alleged Unauthorized Charges and...

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HIGHLIGHTS: The CFPB announced a complaint against a single defendant - the owner of a student loan debt relief company - concerning unauthorized charges and withdrawals from student borrower accounts in violation of the...more

Spilman Thomas & Battle, PLLC

All Consuming - Financial Litigation Insights, Volume 3, Issue 6

Student Loan Forgiveness is Completely Unfair to These People "If President Joe Biden proceeds with wide-scale student loan cancellation, the most likely beneficiaries could include federal student loan borrowers who earn...more

Hudson Cook, LLP

CFPB Bites of the Month - May Top 10

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Bite #10 - The CFPB provided Spanish-language disclosures. To help financial institutions better support Spanish-speaking communities, the CFPB unveiled Spanish translations of the following federal model disclosures:...more

Hudson Cook, LLP

CFPB Orders Debt-Relief Payment Processors to Pay More Than $11 Million and Imposes Industry Bans

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The CFPB announced an $11 million resolution of Telemarketing Sales Rule and Consumer Financial Protection Act claims against debt-relief payment processors and two individuals for allegedly collecting improper fees from...more

Hudson Cook, LLP

CFPB Obtains Bans Against Student-Loan Debt Relief Companies and CEO

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CFPB filed a proposed stipulated final judgment to resolve allegations against affiliated debt relief companies and their top executive concerning alleged wrongful fee-charging practices and deceptive telemarketing in...more

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