Anmerkungen:
In: Loyola Consumer Law Review, Vol. 31, No. 3, 2019
Nach Informationen von SSRN wurde die ursprüngliche Fassung des Dokuments September 13, 2019 erstellt
Beschreibung:
In 2010, following the 2008 financial crisis, Congress passed the Dodd-Frank Wall Street Reform and Consumer Protection Act. Among other provisions, the Dodd-Frank Act established the Consumer Financial Protection Bureau as a direct response to the risky and harmful actions by the financial industry that precipitated the Great Recession. With the passage of the Dodd-Frank Act Congress, for the first time, created an independent federal agency with broad new tools and a singular vision: to oversee America's financial markets for violations of consumer financial protection laws.This article reviews the extent to which the Bureau's authorities and subsequent efforts cover the second largest class of consumer debt in this nation — student loan debt. In particular, it focuses on the critical role that student loan servicers play, both as the vehicle through which tens of millions of borrowers participate in this market and the extent to which widespread illegal servicing practices fuel consumer harm and financial distress. The article discusses how the Bureau's oversight, enforcement, and policy initiatives exposed the need for a student loan servicing rule. The article also explores the features of the student loan servicing market that suggest setting strong, baseline standards through rulemaking is necessary to improve practices by the student loan servicing industry and mitigate consumer harm. The article concludes by defining the authority under the which the Bureau can write a student loan servicing rule and envisioning the scope of this rule