The Washington Post reports: Federal education officials are deciding whether to shut down the nation’s biggest accreditor of for-profit colleges over allegations that it overlooked deception by some of its schools. The Accrediting Council for Independent Colleges and Schools is meant to be a watchdog for hundreds of for-profit schools, wielding the stamp of approval […]
Author Archives: Allison Zieve
The rule is a big step forward but has some significant flaws. Here is Public Citizen's press release: An effort calling on the U.S. Department of Education to halt federal funding for predatory schools that deny students’ access to the courts reached a milestone today, as the department released a proposed rule designed to protect […]
NPR reports today: There is a scandal rocking the financial industry — or we should say, a small but important part of that industry: online lending. Lending Club — one of the first companies to directly connect borrowers and investors online — is in boiling-hot water. Investors were lied to, and the CEO resigned. Industry […]
When federal regulators last week took their first ever step to protect consumers who use payday lenders, many experts described the move as a fatal blow to the industry. The payday trade association said “thousands of lenders” would be forced to “shutter their doors.” But larger payday lenders have already concluded in recent days they […]
Below are recent announcements from the Department of Justice about the work of its Consumer Protection Branch, including work related to mass-marketing fraud schemes, adulterated food, and odometer fraud. Justice Department and Dutch Authorities Announce Simultaneous Enforcement Actions Against International Mass-Mailing Fraud Schemes Targeting the Elderly (June 2, 2016) District Court Enters Permanent Injunction Against […]
Here is a sampling of reaction to the proposed rule on payday pending issued yesterday by the Consumer Financial Protection Bureau. EDITORIAL: A Lame Response to Predatory Loans (The New York Times) The Consumer Financial Protection Bureau has been promising for more than a year to rein in the payday lending industry, whose business model […]
The Hill reports today: Students who start at four-year, nonprofit colleges only have about a 50-50 chance of graduating, according to a new report released Wednesday. Third Way, a centrist think tank in Washington, studied students with loans at the colleges and found what it called “stunning levels of institutional failure.” The report said private […]
Separate from its new proposed rule on payday lending, the Consumer Financial Protection Bureau today issued a "request for information" concerning potentially high-risk loan products and practices that are not specifically covered by the proposed rule. The request for information is focused on: Concerns about risky products not covered: The Bureau is seeking information about […]
The Consumer Financial Protection Bureau today proposed a rule aimed at ending payday debt traps by requiring lenders to take steps to make sure consumers have the ability to repay their loans. The proposed rule would also cut off repeated debit attempts that rack up fees. The proposed rule would cover payday loans, auto title loans, […]
The Consumer Financial Protection Bureau has taken action against a former Wells Fargo employee for an illegal mortgage fee-shifting scheme. The CFPB found that David Eghbali referred a substantial number of loan closings to a single escrow company, which shifted its fees from some customers to others at Eghbali’s request. Eghbali could then manipulate loan […]