The burden of student loan debt continues to weigh heavily on millions of Americans, as evidenced by the significant number of borrowers who have not resumed making payments after the pandemic-induced pause. However, approximately 40% of the 22 million borrowers who had bills due did not make their payments by mid-November, the report said, citing data from the Department of Education.
On December 5, the U.S. District Court for the Southern District of New York granted a debt collection agency (the defendant) a motion to dismiss an individual’s (plaintiff’s) complaint. The case considers whether an undated Model Validation Notice (MVN) is a material detail that provides standing to sue under the FDCPA.
OAKLAND – California Attorney General Bonta joined a bipartisan multistate coalition of attorneys general in an amicus brief to the U.S. Supreme Court defending states’ rights to enforce state consumer financial protection laws against both state and national banks. In the brief filed in Cantero v. Bank of America, the coalition urges the Supreme Court to overturn a Second Circuit Court of Appeals decision holding that the National Bank Act preempts a New York state law that requires mortgage lenders to pay a 2% minimum interest rate on funds held in mortgage escrow accounts.
Many colleges directly offer financial products to students and market other products that are offered by third-party financial service providers. When colleges do this, students trust and rely on their schools’ offering or marketing of these products as financial advice and may be influenced by what they could perceive as their endorsement to sign up for financial products and services that are more expensive than other available options. However, colleges may also have independent interests from those of their students and may not face competitive pressure to lower fees or provide low-cost products.
One of the key lessons of the DSIB failures was that regulators had hamstrung themselves in the years prior and had not used legal authorities to protect the public as contemplated by federal law. Another lesson was that just a handful of large players can create chaos in the system. I am pleased that this year’s annual report clearly highlights certain risks and sets us all on a path for actually using our legal authorities, rather than relegating them to dead letter law.
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