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CFPB Charges Schools With “Abusive” Act of Denying Academic Transcripts to Students With Debts

By Haley Usenick Smith, Jeffrey P. Ehrlich & Farnaz Farkish Thompson on October 12, 2022
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The Consumer Financial Protection Bureau’s recent guidance on withholding transcripts from students with debts revealed that the CFPB is using a broad definition of “private education loan” that may apply to the practices of some not-for-profit schools. Additionally, while the CFPB characterized this practice as “abusive,” its analysis suggests that these practices may also be “unfair,” meaning that the Federal Trade Commission, states, and other regulators may also have authority to address them.

Read on for details about this development and important takeaways for schools with in-house lending programs.

Photo of Haley Usenick Smith Haley Usenick Smith

Haley practices in the areas of consumer financial services regulation and financial services litigation. She is also a member of the firm’s Data Privacy and Security team, focusing on compliance issues relating to state and federal privacy laws.

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Photo of Jeffrey P. Ehrlich Jeffrey P. Ehrlich

Jeff Ehrlich represents clients before the Consumer Financial Protection Bureau (CFPB) and other federal and state agencies that administer and enforce consumer-financial-protection laws, including the Consumer Financial Protection Act of 2010, the Fair Credit Reporting Act, the Truth in Lending Act, the Electronic…

Jeff Ehrlich represents clients before the Consumer Financial Protection Bureau (CFPB) and other federal and state agencies that administer and enforce consumer-financial-protection laws, including the Consumer Financial Protection Act of 2010, the Fair Credit Reporting Act, the Truth in Lending Act, the Electronic Fund Transfer Act, the Fair Debt Collection Practices Act, the Real Estate Settlement Procedures Act, and their implementing regulations.

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Photo of Farnaz Farkish Thompson Farnaz Farkish Thompson

Co-leader of McGuireWoods’ Education Industry Team and Higher Education Practice Group, Farnaz has extensive experience representing corporations and institutions of higher education in high-profile litigation and government investigations. She is a trusted advisor with a keen eye for due diligence in education-related transactions…

Co-leader of McGuireWoods’ Education Industry Team and Higher Education Practice Group, Farnaz has extensive experience representing corporations and institutions of higher education in high-profile litigation and government investigations. She is a trusted advisor with a keen eye for due diligence in education-related transactions, including those within the edtech sector.

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  • Posted in:
    Other
  • Blog:
    Consumer FinSights
  • Organization:
    McGuireWoods LLP
  • Article: View Original Source

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