Department of Education has announced that it will forgive the student-loan debt of borrowers whose borrower-defense claims have already been approved. The announcement is here. Under the law, students who attended schools that misled them or engaged in other misconduct in violation of certain state laws are eligible for borrower defense to loan repayment forgiveness, […]
Author Archives: Allison Zieve
The Consumer Financial Protection Bureau today issued an interpretive rule clarifying that the prohibition against sex discrimination under the Equal Credit Opportunity Act and Regulation B includes sexual orientation discrimination and gender identity discrimination. This prohibition also covers discrimination based on actual or perceived nonconformity with traditional sex- or gender-based stereotypes, and discrimination based on […]
The Consumer Financial Protection Bureau last week issued a report warning that, without additional action, widespread evictions and foreclosures will occur after federal, state, and local pandemic protections come to an end. The report finds that more than 11 million families are behind on their rent or mortgage payments: 2.1 million families are behind at […]
The Consumer Financial Protection Bureau, Virginia, Massachusetts, and New York today sued a company called Libre by Nexus, Inc. and its owners for a predatory immigrant-services scam that traps victims into paying expensive, long-term fees. The complaint alleges that Libre preys on immigrants, primarily Hispanics, who speak little or no English and are being held […]
Last week was a busy one for the Federal Trade Commission. Among other things: FTC Acts to Ban Payday Lender From Industry, Forgive Illegal Debt Four Defendants Settle with the FTC for Their Alleged Role in Credit Card Laundering Scheme FTC Sends More than $1.7 Million in Refunds to People who Lost […]
More consumers than ever report falling prey to romance scammers, according to new Federal Trade Commission data that show consumers reported losing a record $304 million to the scams last year. A newly released data spotlight shows that the amount consumers reported losing to romance scammers is up about 50 percent since 2019, and has increased […]
Kathy Kraninger has resigned as CFPB director, effective today. Her resignation letter is here.
Although the Betsy DeVos resigned as Secretary of Education last week, the Department has continued to push ahead in the rush to the Trump Administration finish line. On Friday, ED's Office of the General Counsel published a memorandum stating that LGBTQ students are not expressly included in protections under Title IX, the law that prohibits […]
From the States' press release: Attorneys general from New York, California and several other states sued on Tuesday to block the Office of the Comptroller of the Currency's recently finalized "true lender" rule, a measure that the states argue is unlawful and stands to facilitate predatory lending. In a complaint filed in New York federal […]
Many states bar super-high interest rates. But high-cost lenders can circumvent such limits, known as usury caps, through rent-a-bank schemes. And under the Trump administration, the schemes have gotten a boost from two rules approved this year by the top federal banking regulator, the Office of the Comptroller of the Currency. Focusing on a small […]