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CFPB Says Using Complex Algorithms Is Not A Legal Defense For Discrimination

Source: site The Consumer Financial Protection Bureau recently warned companies that, under federal anti-discrimination laws, they still owe consumers an explanation of specific reasons for denying credit applications, even if they use complex algorithms to determine creditworthiness. The move is both a reminder of…
Legal News

CFPB Expansion Of States’ Enforcement Authority May Be Illegal

Source: site Since Rohit Chopra’s confirmation as director of the Consumer Financial Protection Bureau in 2021, he has aggressively moved the CFPB back to the policy positions formerly employed during the Obama administration. Oftentimes based upon supposition without actual support (even…
Government News

Biden Admin Announces Cancelling Nearly $6 Billion In Loan Debt

Source: site In the first indication that President Joe Biden could be preparing to cancel student loan debt, the administration is prepared to wipe out nearly $6 billion owed by hundreds of thousands who attended a for-profit college chain, a possible…
Educational News

Biden Administration’s Approval Of $5.8 Billion In Automatic Student Loan Cancellation Is ‘Largest In History’

Source: site The Biden administration announced on Wednesday that the Education Department has approved billions of dollars in new student loan forgiveness for borrowers defrauded by Corinthian Colleges. The Education Department characterized the action as “the largest single loan discharge the Department has…
Bankruptcy News

Panthers Owner David Tepper Reportedly Files for Bankruptcy

Source: site Panthers owner David Tepper, the league’s wealthiest owner, has filed Chapter 11 bankruptcy through his company, GT Real Estate Holdings LLC, according to a report from Joseph Person and Daniel Kaplan of The Athletic. Per the report, Tepper’s real estate…
Educational News

Senators Propose Major Changes To Student Loan Forgiveness

Source: site Two U.S. senators have proposed major changes to student loan forgiveness. Here’s what you need to know — and what it means for your student loans. Student Loans U.S. Senators Sheldon Whitehouse (D-RI) and Jeff Merkley (D-OR) introduced new legislation — the Simplifying and…
Legal News

North Carolina AG Permanently Enjoins Debt Settlement Business

Source: site On May 26, 2022, the North Carolina Attorney General (NC AG) announced that it obtained a default judgment against a California-based debt settlement business, and its proprietor.  The lawsuit, filed on June 25, 2021 in the North Carolina Superior Court for Wake County,…
Legal News

Credit Union Trades Applaud CFPB Decision To Supervise Fintechs

Source: site The Consumer Financial Protection Bureau (CFPB)’s decision to establish supervisory powers over nonbank financial institutions will level the playing field and subject those companies to much-needed scrutiny, credit union trade groups informed the agency Tuesday. “These business models of nonbank…
Government News

CFPB Encourages States To Use Federal Authorities To Bring Enforcement Actions

Source: site The Consumer Financial Protection Bureau (“CFPB”) issued  an interpretive rule on May 19, reiterating the authority that states have to pursue companies and individuals that violate federal consumer financial protection laws, including the Consumer Financial Protection Act of 2010 (“CFPA”). When…
Educational News

Education Department announces revamp of its student loan program

Source: site Chalk up another move in the right direction for student loans. In hopes of providing federal student loan borrowers with a 21st-century customer experience, the Department of Education’s (DOE) Federal Student Aid (FSA) office has announced that it is building out a…