CFPB lawsuit draws US regs battle lines as SLABS flaws laid bare

US_Judge_Gavel_Jan_26_Fotolia_230x150
By Sasha Padbidri
26 Jan 2017

A US Consumer Financial Protection Bureau (CFPB) lawsuit filed against a student loan servicer has highlighted the bureau's importance just as Donald Trump gets to grips with a presidency many predict will shrink regulators’ powers. Meanwhile, writes Sasha Padbidri, the suit exposes deep flaws in student loan servicing which could affect the ABS market.

The CFPB’s decision to file the suit last week, which alleges that Navient funnelled borrowers into forbearance, comes after the student loan servicer announced last Wednesday that it had rejected an alleged ultimatum by the CFPB to settle by last Friday, when Trump was inaugurated as ...

Please take a trial or subscribe to access this content.

Contact our subscriptions team to discuss your access: subs@globalcapital.com

Or sign up for a trial to gain full access to the entire site for a limited period.

Free Trial

Corporate access

To discuss GlobalCapital access for your entire department or company please contact our subscriptions sales team at: subs@globalcapital.com or find out more online here.