What is the Consumer Financial Protection Bureau (“CFPB”)?

President Obama signed the Dodd-Frank Wall Street Reform and Consumer Protection Act in July 2010, which established the Consumer Financial Protection Bureau (CFPB). In January of 2012, President Barack Obama appointed Rich Cordray to be the first Director of the CFPB. The CFPB writes rules, supervises companies, and enforces federal

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student loan lawsuit

Robo-signing 2.0: Student Loan Collection

Once again, lenders are suing consumers without verification and knowledge of the fundamentals, like who owes how much and to whom.  Residential mortgage market crisis, round 2. Since 2007, the federal student loan balance has more than doubled, to almost $1.2 trillion from $516 billion.  That figure doesn’t include the

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Softening the Standard for Discharge of Student Loan Debt

According to data compiled by the Federal Reserve, national student loan debt in the United States rose an astounding 275% from 2003 ($241 billion) to 2012 ($904 billion).  This surge in student loan debt was no doubt spurred by the economic downturn, as people who lost jobs or could not

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Student Loans and Bankruptcy: Brunner Test Alive and Well

Recent 6th Circuit BAP Decision Shows the Brunner Test is Alive and Well On August 8, 2014, the 6th Circuit BAP reaffirmed a decision denying a student loan discharge for a 54 year-old-woman. The In re Trudel (citation unavailable) decision shows us that despite other districts turning away from the

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Student Loan Market Exit

JP Morgan Chase recently announced that effective October 12, 2013, it will no longer make student loans.  Wells Fargo is now the ONLY major US commercial bank still making student loans.  Chase is the latest bank running for the exit doors.  Moody’s reports that during the 2011-2012 academic year, private

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Student Loan Discharge: Still an Uphill Battle?

Discharging student loans in bankruptcy has always been quite difficult under the standards that the debtor is required to prove a somewhat cost-prohibitive piece of litigation if the student lender is going to fight.  Further, each case is quite fact-specific, so your facts may be slightly different from the next

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