In CFPB v. National Collegiate Master Student Loan Trust et al., the district court rejected the Trusts’ arguments that they were not “covered persons” under the CFPA and that because.
The Delaware federal district court, in CFPB v. National Collegiate Master Student Loan Trust et al., has rejected the Trusts’ argument that because the enforcement action was filed by.
Consumer Financial Protection Bureau v. The National Collegiate Master Student Loan Trusts Third Circuit Court ruled that Trusts were covered persons under Consumer Financial Protection Act CFPA despite having no employees and contracting with special servicers and subservicers to service and collect on the student loans.
On December 13, 2021, Judge Stephanos Bibas, visiting judge in the U.S. District Court for the District Delaware from the U.S. Court of Appeals for the Third Circuit, denied a motion to.
In
Consumer Fin. Prot. Bureau v. Nat’l Collegiate Master Student Loan Trust, the District of Delaware dismissed a lawsuit brought by the Consumer Financial Protection Bureau (CFPB), alleging that a group of trusts that hold more than 800,000 private student loans engaged in unfair and deceptive practices. The District Court held that the CFPB’s attempt to ratify its prosecution was untimely and, therefore, constitutionally flawed in light of the Supreme Court’s decision in
Seila Law LLC v. Consumer Financial Protection Bureau.
In 2017, the trusts entered into a consent judgment with the CFPB, which the court denied due to a lack of authority by the trusts’ counsel. Several entities with financial interests in the loans held by the trusts intervened, arguing that the court lacked subject matter jurisdiction or alternatively that the CFPB’s action was now untimely.