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

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 ...

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