by Troutman Sanders CFPB Team
On November 16, 2011, the Consumer Financial Protection
Bureau (CFPB) announced
the next step in its student loan initiative with its Notice
and Request for Information Regarding Private Education Loans and Private
Educational Lenders. Pursuant to the Dodd-Frank Wall Street Reform and
Consumer Protection Act, the CFPB is charged with
conducting a study of and writing a report to Congress regarding the private
student loan market. The CFPB calls this market, which is defined as excluding
federal loan programs, as one of the "least understood credit markets."
The CFPB is soliciting public comment on the issues
Congress charged the CFPB to study. In broad brush, the CFPB is
seeking information on "how the private student loan market functions (or
doesn't), how and why you got a private loan, and how it is (or is not) working
for you." The CFPB plans to issue its report by summer.
Given that the consequence of this process can be
Congressional action and further CFPB initiatives using its existing regulatory
authority, participants in this market should be aware of the scrutiny and the
possibility for significant changes ahead.
Authored by Alan D. Wingfield, Virginia
Read more at Consumer Financial Protection Bureau
Report by Troutman Sanders LLP.
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