The Consumer Financial Protection Bureau

CFPB Fines Student Loan Holder, Debt Collector

The federal government has fined two groups it says illegally attempted to collect student loan debt and prohibited them from further action on recovering payments until audits on all its accounts are completed. The Consumer Financial Protection Bureau said Monday National Collegiate Student Loan Trusts, which owns more than 800,000 student loans, and their debt collector, Transworld Systems, sued borrowers…

Federal Regulator Moves to Mostly Ban Arbitration Clauses

The federal financial consumer watchdog agency has moved to broadly ban the use of so-called arbitration clauses when groups of people want to file a class-action lawsuit against a bank or other financial company. Consumer advocates have been pushing for years for stricter federal regulation of these types of clauses. But the move is likely to face pushback from the…