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Category: Speech |
Published

Prepared Remarks of CFPB Director Richard Cordray at the Consumer Advisory Board Meeting

Today, I want to talk to you about some of the issues people encounter when they are paying back debts. Specifically, I want to discuss the debt collection market and the student loan servicing market. Both are markets where consumers cannot vote with their feet, and where incentives and practices are not always aligned with consumer interests.

Category: Press release |
Published

Consumer Financial Protection Bureau Finds Consumers Complain Of Needless Hurdles In Applying For Lower Student Loan Payments

Today the Consumer Financial Protection Bureau (CFPB) Student Loan Ombudsman released a report finding consumers complain of servicing problems that make it difficult to get lower student loan payments tied to their income. Student loan borrowers seeking to take advantage of income-driven repayment plans with their federal student loans complain to the CFPB about prolonged processing delays and wrongful rejections by their student loan servicers.

Category: Press release |
Published

CFPB Halts Student Loan Debt Relief Scam

Student Aid Institute Illegally Tricked Borrowers Into Paying Fees for Federal Loan Benefits WASHINGTON, D.C. — The Consumer Financial Protection Bureau (CFPB) today took action to halt a student loan debt relief scam that illegally tricked borrowers into paying fees for federal loan benefits and misrepresented to consumers that it was affiliated with the Department […]

Category: Press release |
Published

CFPB Takes Action to Shut Down Illegal Student Debt Relief Scheme

Student Loan Processing.US and Owner Charged Student Loan Borrowers Millions in Illegal Fees WASHINGTON, D.C. — Today the Consumer Financial Protection Bureau (CFPB) requested that a federal district court enter a final judgment and order that would shut down a student debt relief scheme that charged borrowers millions of dollars in illegal upfront fees for […]

Category: Press release |
Published

CFPB Recovers $107 Million in Relief for More Than 238,000 Consumers Through Supervisory Actions

Examiners Uncover Illegal Practices in Student Loan Servicing, Mortgage Origination and Servicing, Consumer Reporting, and Debt Collection Markets WASHINGTON, D.C. – Today the Consumer Financial Protection Bureau (CFPB) released its latest supervision report outlining the illegal practices uncovered by the Bureau’s examiners from May 2015 to August 2015. The Bureau found violations in the student […]

Category: Press release |
Published

CFPB Takes Action Against Nationwide Student Financial Aid Scam

Operation Ripped Off Students and Families Applying for College Financial Aid WASHINGTON, D.C. — Today, the Consumer Financial Protection Bureau (CFPB) announced it is taking action to halt a nationwide student financial aid scam that allegedly ripped off tens of thousands of students and families across the country by illegally charging millions of dollars in […]

Category: Press release |
Published

CFPB Wins Default Judgment Against Corinthian Colleges for Engaging in a Predatory Lending Scheme

Court Rules that Corinthian Engaged in Deceptive Lending Practices and Illegal Debt Collection Practices WASHINGTON, D.C. — Yesterday, at the request of the Consumer Financial Protection Bureau (CFPB), a federal court entered a final default judgment against Corinthian Colleges, Inc., resolving a lawsuit filed by the CFPB in September 2014. The Bureau’s lawsuit against Corinthian […]

Category: Press release |
Published

CFPB Concerned About Widespread Servicing Failures Reported by Student Loan Borrowers

CFPB and U.S. Departments of Education and Treasury Issue Framework for Servicing Reforms, Bureau Prioritizes Stamping Out Illegal Actions WASHINGTON, D.C. — Today, the Consumer Financial Protection Bureau (CFPB) released a report outlining widespread servicing failures reported by both federal and private student loan borrowers. Consumers describe companies using a wide range of sloppy, patchwork […]

Category: Press release |
Published

CFPB Takes Action Against Student Financial Aid Services, Inc. for Illegal Recurring Billing Scheme

Company to Pay $5.2 Million For Illegally Billing Over 100,000 Consumers WASHINGTON, D.C. – Today the Consumer Financial Protection Bureau filed a complaint and proposed consent order in federal court against Student Financial Aid Services, Inc. for illegal sales and billing practices. The Bureau alleges that the company, which until recently operated FAFSA.com, lured in […]

Category: Press release |
Published

CFPB Orders Discover Bank to Pay $18.5 Million for Illegal Student Loan Servicing Practices

Discover’s Illegal Servicing Practices Affected Private Student Loan Borrowers Transferred from Citibank WASHINGTON, D.C. — Today the Consumer Financial Protection Bureau (CFPB) took action against Discover Bank and its affiliates for illegal private student loan servicing practices. The CFPB found that Discover overstated the minimum amounts due on billing statements and denied consumers information they […]

Category: Press release |
Published

CFPB Report Finds Servicemembers Continue To Face Roadblocks From Student Loan Servicers

Servicers Still Failing to Provide Legal Protections to Military Borrowers WASHINGTON, D.C. – Today the Consumer Financial Protection Bureau released a report outlining the continued challenges faced by servicemembers when they contact student loan servicers to invoke the military rights and protections earned through their service. The report, “Overseas & Underserved: Student Loan Servicing and […]

Category: Press release |
Published

CFPB Finds 90 Percent of Private Student Loan Borrowers Who Applied for Co-Signer Release Were Rejected

Industry Inquiry Reveals Problems for Consumers Seeking to Prevent Auto-Defaults WASHINGTON, D.C. — Today the Consumer Financial Protection Bureau (CFPB) Student Loan Ombudsman released a report finding high rates of consumers are being rejected for co-signer release on their private student loans, based on its review of industry practices. The Bureau uncovered problematic industry practices […]

Category: Speech |
Published

Prepared Remarks of CFPB Director Richard Cordray at the Field Hearing on Student Loans

Thank you all for joining us today in Milwaukee. Plato once said, “The direction in which education starts a man will determine his future life.” More Americans are heeding that advice and going to college at record rates – including both women and men, I might add, unlike in Plato’s day. At the same time, […]

Category: Press release |
Published

CFPB Launches Public Inquiry Into Student Loan Servicing Practices

Bureau Seeks Information On Industry Practices That Can Create Student Debt Stress WASHINGTON, D.C. — Today the Consumer Financial Protection Bureau (CFPB) is launching a public inquiry into student loan servicing practices that can make paying back loans a stressful or harmful process for borrowers. The issues that the Bureau is seeking information on include: […]

Category: Speech |
Published

Prepared Remarks of CFPB Director Richard Cordray at the Ohio College Presidents’ Conference

Let me start by thanking Senator Brown for inviting me to speak to you today about how our young people are seeking to finance their education and improve their future lives. I will provide a brief overview of some of the issues surrounding student loan debt and the costs of higher education, and I will […]

Category: Speech |
Published

Prepared Remarks of CFPB Director Richard Cordray at the President’s Advisory Council

Earning a college degree has become increasingly important to personal and professional success in life. Yet we know it also can impose long-term burdens that borrowers struggle to manage. Today, outstanding student debt in this country has topped a trillion dollars, making it the second largest source of debt behind mortgages. Before taking out loans to finance their education, our young people must be better equipped to make smart decisions about managing college costs.

Category: Press release |
Published

CFPB Releases Safe Student Account Scorecard

Bureau Seeks Comment on Scorecard to Help Schools Avoid Promoting Products with Tricks and Traps WASHINGTON, D.C. — Today, the Consumer Financial Protection Bureau (CFPB) is seeking input on a “Safe Student Account Scorecard” that would help colleges to avoid partnering with financial institutions that offer checking and prepaid accounts with tricks and traps. The […]

Category: Press release |
Published

CFPB Takes Action to End Student “Debt Relief” Scams

CFPB Warns Borrowers About Companies Charging High Fees for Free Federal Loan Repayment Benefits WASHINGTON, D.C. — Today, the Consumer Financial Protection Bureau (CFPB) took action to put an end to two student “debt relief” scams that illegally tricked borrowers into paying upfront fees for federal loan benefits. The CFPB, in a joint filing with […]

Category: Press release |
Published

CFPB Supervision Report Highlights Risky Practices in Student Loan Servicing

Examiners Also Uncover Violations of Mortgage Servicing Laws WASHINGTON, D.C. – The Consumer Financial Protection Bureau (CFPB) today issued a report highlighting illegal actions uncovered by the Bureau’s supervision of the student loan servicing market. Bureau examiners found that companies engaged in illegal practices like charging unfair late fees and harassing debt collection calls. Bureau […]