The Department of Education has levied a $37.7 million fine against Grand Canyon University for allegedly misleading more than 7,500 former and current students about the cost of its doctoral programs. The Washington Post reports that, “Grand Canyon, which enrolls more than 118,000 students mostly online, disputes the charges and said it ‘will take all […]
Category Archives: Other Lending, Debt, and Credit Issues
In March, as a result of a lawsuit brought by the California Reinvestment Coalition, the CFPB finalized a rule under Section 1071 of the Consumer Financial Protection Act, requiring lenders to collect and report information about small business credit applications. Today, by a vote of 53-44, the Senate voted to invalidate the measure under the […]
The Supreme Court on Friday agreed to hear a case called Cantero v. Bank of America, concerning preemption under the National Bank Act. The petition describes the issue this way: “At least thirteen states have enacted laws requiring mortgage lenders to pay a minimum interest rate on funds held in mortgage escrow accounts. Congress has […]
The Consumer Financial Protection Bureau has issued guidance about certain legal requirements that lenders must adhere to when using artificial intelligence and other complex models. The agency explains: “The guidance describes how lenders must use specific and accurate reasons when taking adverse actions against consumers. This means that creditors cannot simply use CFPB sample adverse […]
The Consumer Financial Protection Bureau published today “a report highlighting the risks employer-driven debt poses to workers. After a review of responses to the CFPB’s public inquiry, the analysis describes the growing prevalence of employer-driven debt and challenges workers and consumers face when they become indebted to an employer or an employer’s affiliate as a […]
The DC Attorney General’s Office today announced that “EasyPay Finance (EasyPay), a rent-a-bank lender that had operated in the District, will pay more than $215,000 to resolve allegations that it used predatory practices to deceive hundreds of District residents into paying interest rates significantly above DC’s legally allowed maximum rate. In addition to financial terms, […]
CNN reports: “Federal regulators said Tuesday they found that Bank of America harmed customers by double-dipping on fees, withholding credit card rewards and opening fake accounts, all of which are violations of various consumer financial protection laws. As a result, the Consumer Financial Protection Bureau ordered Bank of America to pay more than $100 million […]
The Consumer Financial Protection Bureau has finalized a rule required by Congress to increase transparency in small business lending, promote economic development, and combat unlawful discrimination. Lenders will collect and report information about the small business credit applications they receive, including geographic and demographic data, lending decisions, and the price of credit. A summary, with […]
The Consumer Financial Protection Bureau released today a special edition of its Supervisory Highlights that reports on unlawful junk fees uncovered in deposit accounts and in multiple loan servicing markets, including in mortgage, student, and payday lending. The CFPB explains that “[t]hese unlawful fees corrode family finances, force up families’ banking and borrowing costs, and […]
The question in the case, Santos v. Yellowfin Loan Servicing Corp., No. 22-0910 (Tex. S. Ct.), is whether a claim to collect a deficiency judgment on a second mortgage accrues when that judgment is entered or whenever in the future the lender (or its successor in interest) decides to “accelerate” the original mortgage loan. Lenders […]