CFPB Studies How Student Loan Borrowers Transition Out Of Debt. The CFPB recently issued a report on student loan payments and broader household borrowing. The report provides a close look at borrowers’ use of credit as they approach and make their final student loan payments and what follows in the months beyond. One key finding: Most borrowers pay off a student loan before the final installment is due, often with a single large payment. Further [Includes Four Briefs] ...

A House Republican asked the CFPB to stop so- called regulation by enforcement and to clarify the use and role of the guidance it has issued. Rep. Blaine Luetkemeyer, R-MO, recently sent a letter to six agencies, including the CFPB, expressing concerns that guidance that does not go through notice-and-comment rulemaking has been used as the basis of enforcement actions. “Many of my colleagues and I hear frequently from financial institutions that guidance promulgated ...

The CFPB fined a South Carolina-based installment lender $5 million for unlawful debt collection practices, including threatening consumers with jail, shoving them and physically blocking a consumer from leaving private property. It is the second enforcement action since Mick Mulvaney, the White House budget director, took the reins of the CFPB last year. The Security Group and its subsidiaries own and operate approximately 900 locations in 20 states across the country ...

The CFPB has issued a report on end-of- year credit card borrowing and repayment of credit card balances in the following year. The report found the year-end rise in consumer debt was most pronounced in general purpose credit card debt and retail store card debt. Delinquency rates on credit cards rise during and after the holiday season, driven by consumers with subprime credit scores, the report said [Includes one brief] ...

The CFPB is expected to move more quickly to reconsider its payday-lending rule after a federal court denied the delay of the rule’s compliance date that had been requested in a joint motion filed by the CFPB and two trade groups. Two payday-lending trade groups – the Community Financial Services Association of America and the Consumer Services Alliance of Texas – in April filed a lawsuit in Texas federal district court, alleging the agency’s payday-lending rule is unlawful ...

Defaults remain low on student loan refinancing originated by online lenders due to the overall high quality of their borrowers, and some new repayment assistance programs will help the strong performance, said Moody’s Investors Service.

The CFPB and two payday-lending trade groups filed a joint motion seeking a stay of a lawsuit challenging the CFPB payday-lending rule, and to delay the compliance date set by the rule. The lawsuit at issue was filed by the Community Financial Services Association of America and Consumer Services Alliance of Texas in April in a Texas federal district court. The two groups alleged that the consumer agency’s payday-lending rule is unlawful because ...

Senate Democrats are asking for more information from Acting CFPB Director Mick Mulvaney about the reorganization of the bureau’s student protection unit and ending public disclosure of the consumer complaint database. Sen. Sherrod Brown, OH, ranking member of the Senate Banking, Housing, and Urban Affairs Committee, and Sen. Patty Murray, WA, ranking member of the Senate Health, Education, Labor and Pensions Committee, led the group ...

The CFPB payday lending rule has survived Congress, but Acting Director Mick Mulvaney suggested that the bureau will work with the Office of the Comptroller of the Currency to change it. “The bureau will strive to expand consumer choice, and I look forward to working with the OCC and other partners on efforts to promote access and innovation in the consumer credit marketplace,” Mulvaney said in a statement. The acting director applauded an OCC ...

Acting CFPB Director Mick Mulvaney announced last week that he plans to restructure an office that aims to help student loan borrowers. Many consumer advocates worried that the change will strip the office of all functions except for consumer education. In a memo obtained by Inside the CFPB, Mulvaney announced to all staffers that the Office of Students and Young Consumers will be folded into the Office of Financial Education. Both offices are part of the bureau’s Consumer Education ...