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Proud to support @DemocracyFwd @DebtCrisisOrg to hold @CFPBDirector & @BetsyDeVosED accountable for failing to oversee more than a trillion dollars of student loans—shielding industry from oversight & putting millions of borrowers at risk.
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https://www.npr.org/2019/11/25/782460891/consumer-agency-failed-to-protect-student-loan-borrowers-lawsuit-says
Thread
https://www.npr.org/2019/11/25/782460891/consumer-agency-failed-to-protect-student-loan-borrowers-lawsuit-says
In 2013, @CFPB wrote a rule *requiring* it to oversee the largest student loan servicers, monitoring how companies manage ALL #studentloans, including loans owned by @usedgov & loans owned by private creditors.
Congress intended CFPB to do this work https://www.consumerfinance.gov/about-us/newsroom/cfpb-to-oversee-nonbank-student-loan-servicers/
Congress intended CFPB to do this work https://www.consumerfinance.gov/about-us/newsroom/cfpb-to-oversee-nonbank-student-loan-servicers/
For 4 years, @CFPB halted abuses by these companies - including illegal practices by those handling loans owned by @usedgov.
It worked! CFPB stopped companies from misapplying payments & mishandling IDR apps, returning millions to borrowers. https://www.consumerfinance.gov/about-us/newsroom/cfpb-supervision-recovers-11-million-225000-harmed-consumers
It worked! CFPB stopped companies from misapplying payments & mishandling IDR apps, returning millions to borrowers. https://www.consumerfinance.gov/about-us/newsroom/cfpb-supervision-recovers-11-million-225000-harmed-consumers
But once Trump took control of @CFPB, @MickMulvaneyOMB and @CFPBDirector just stopped doing their jobs.
As @CFPBDirector explained to @SenWarren, CFPB decided to ignore the law because oversight made @BetsyDeVosED unhappy. https://www.npr.org/2019/05/16/723568597/cfpb-chief-says-education-department-is-blocking-student-loan-oversight
As @CFPBDirector explained to @SenWarren, CFPB decided to ignore the law because oversight made @BetsyDeVosED unhappy. https://www.npr.org/2019/05/16/723568597/cfpb-chief-says-education-department-is-blocking-student-loan-oversight
What did this mean for borrowers?
@CFPB failed to oversee companies responsible for botching the critically important PSLF program, including @PHEAAaid which has been sued by @MassAGO and @NewYorkStateAG for widespread abuses. https://www.npr.org/2019/10/15/769326896/exclusive-turf-war-blocked-cfpb-from-helping-fix-student-loan-forgiveness-progra
@CFPB failed to oversee companies responsible for botching the critically important PSLF program, including @PHEAAaid which has been sued by @MassAGO and @NewYorkStateAG for widespread abuses. https://www.npr.org/2019/10/15/769326896/exclusive-turf-war-blocked-cfpb-from-helping-fix-student-loan-forgiveness-progra
This also means that CFPB stopped doing essential work to police discrimination, failing to hold companies accountable for complying with fair lending law.
@CFPB is ignoring evidence of disparities between borrowers of color & their white peers. https://www.washingtonpost.com/education/2019/06/05/civil-rights-groups-urge-consumer-bureau-root-out-discrimination-student-loan-servicing-industry/
@CFPB is ignoring evidence of disparities between borrowers of color & their white peers. https://www.washingtonpost.com/education/2019/06/05/civil-rights-groups-urge-consumer-bureau-root-out-discrimination-student-loan-servicing-industry/
For more than 2 years, @CFPB been violating the law and in doing so, created a trillion dollar blind spot at the heart of our economy.
That’s why we’re standing with @DemocracyFwd & @DebtCrisisOrg to demand that CFPB do its job & #protectborrowers.
That’s why we’re standing with @DemocracyFwd & @DebtCrisisOrg to demand that CFPB do its job & #protectborrowers.
