The Supreme Court agreed to hear a consumer’s appeal from the Third Circuit’s ruling that his claims under the Fair Debt Collection Practices Act were time-barred despite being brought within one year of discovering the violation.  The circuits have been split on whether the one-year statute of limitations under the FDCPA begins to run when

Student loan debt in the United States has reached over $1.53 trillion – a figure the Federal Reserve suggested is discouraging young people from buying homes. While that number continues to rise, some in Congress have taken notice of its consequences and seek to implement changes in repayment options to provide desperately needed

The Federal Reserve Board of Governors and the Federal Deposit Insurance Corporation (“FDIC”) issued a joint advisory making financial institutions aware of a recent change to the Fair Credit Reporting Act (“FCRA”) that provides that financial institutions may offer to remove defaults in private education loan borrowers’ consumer reports under an approved rehabilitation program.

Last week, Navient Corp., the nation’s largest student loan servicer, moved for summary judgment on two enforcement claims brought against it by the Consumer Financial Protection Bureau alleging that Navient engaged in abusive and unfair practices under the Consumer Financial Protection Act.   

In January 2017, the CFPB filed an enforcement action in the U.S.

In a recent decision, the United States District Court for the Northern District of Illinois granted a debt collector’s motion to dismiss a debtor’s breach of contract claim in a putative class action, leaving for adjudication the debtor’s claims under the Fair Debt Collection Practices Act (“FDCPA”).  The case is Burdette-Miller v. Williams & Fudge,

On January 3, 49 state attorneys general announced a settlement with Career Education Corporation (“CEC”), a for-profit education company, to resolve claims that CEC engaged in unfair and deceptive practices.  The settlement requires CEC to forgo any collection efforts against $493.7 million in outstanding loan debt held by nearly 180,000 former students.  It also imposes

In December, Judge Robert D. Mariani denied Navient’s motion to dismiss a lawsuit filed by the Commonwealth of Pennsylvania, ruling that the suit is not pre-empted by a similar case filed against the company by the Consumer Financial Protection Bureau.  In the suit, the Commonwealth seeks to hold Navient liable for student loan collection activity

A wave of lawsuits filed under the Fair Debt Collection Practices Act, especially in the Second Circuit, continues regarding disclosures of interest and fees in collection letters.  Consumers have complained about failure to warn of interest and fees continuing to accrue, as well as failure to disclose that interest and fees did not accrue.  The

Last month, Troutman Sanders reported on the proposed TRACED Act which would instruct the Federal Communications Commission to engage in rulemaking to protect consumers from receiving unwanted calls and text messages from unauthenticated phone numbers.  FCC Chairman Ajit Pai tweeted his approval for the bill, but the FCC is not waiting on Congress to fight

The next generation of federal student loan servicing is scheduled to debut in 2019. The Department of Education’s new platform, called Next Generation Financial Services Environment (or “NextGen”), aims to integrate the entire student-loan process—from submitting the Free Application for Federal Student Aid (“FAFSA”) through payment, processing, and service—into a single website. But NextGen