Non profit debt relief programs

In December 2016, DeVry University agreed to pay $100 million to settle a lawsuit with the Federal Trade Commission (FTC) over allegations stemming from DeVry’s advertising about the employment rates and salaries of its graduates. According to the FTC press release announcing the settlement in FTC v. DeVry Educ. Group in the district court for the Central District of California, DeVry will pay $49.4 million in cash to be distributed to students and $50.6 million towards debt relief programs to cover unpaid student loans and debts.This dispute began in January 2015 when the FTC filed a lawsuit  in California federal court in Los Angeles against DeVry, alleging two areas of allegedly deceptive advertising. First, the FTC took issue with DeVry’s claim that 90% of all DeVry graduates who were actively seeking employment obtained jobs in their field of study within six months of graduation.  The FTC alleged that DeVry did not have a reasonable basis to support this … [Read more...] about FTC and DeVry University Settle False Advertising Claims for $100M

It is a rare moment when we realize we are actually witnesses to history. So it was only fitting that this past week, while the baby boomer generation remembered where they were when they heard the news of the assassination of President Kennedy, Majority Leader Reid decided to execute the so-called “nuclear option.”   Like so many things these days in our nation’s Capitol, the decision was simultaneously hailed or demonized, and while history will be the ultimate judge of things, it is clear that the decision will have a real impact on the remainder of the 113th Congress. In terms of the procedural maneuver’s impact on the financial services industry, the most immediate effect is that many of the heretofore vacant positions at various regulators will be filled more quickly than under the old system.  This includes Mel Watt at FHFA, as well as others, such as Janet Yellen who certainly appeared able to be confirmed under the 60 vote … [Read more...] about Financial Services Legislative and Regulatory Law Update – week of November 25, 2013

As the CFPB completes its first year of operation, much can be learned from its investigation and enforcement activity thus far.The Consumer Financial Protection Bureau (CFPB or the Bureau) recently completed its first year of operation as the new "cop on the beat" for consumer financial matters. The CFPB is the newest federal agency authorized to supervise banks, but its authority extends further to larger non-bank participants—companies that provide broadly defined consumer financial products or services but that do not have a bank, thrift, or credit union charter. The CFPB has already begun to enforce its authority, investigating claims of mortgage insurance kickbacks, student loan originations, advertising and marketing by student lenders, and possible discriminatory practices of the dealer-originated car loan industry and challenging the marketing of fee-based products by a large national bank. The Bureau has also proposed new rules for once lightly regulated industries. For … [Read more...] about Consumer Financial Protection Bureau Frequently Asked Questions

Leading the Past WeekThe past week was an incredibly busy one here in Washington, DC. Leading the past week, an overwhelming majority of the Senate voted to pass the capital formation deregulation bill, colloquially known as the JOBS Act, but not before adding an amendment to increase the regulations on crowdfunding from the House version. This change only served as a small speed bump, as it sent the bill back to the House which is expected to pass the bill again by a wide margin early this week, before sending the bill to the President. Given that the President had asked Congress to pass the bill, it will be interesting to see whether he holds a signing ceremony, which could potentially put him in the politically tricky situation of having to congratulate the so-called “do nothing” Congress he is trying to run against.Nearly drowned out by the news of the JOBS bill was the fact that a bipartisan group of senators (3 Ds and 3Rs) came together to introduce legislation to … [Read more...] about Financial Services Legislative and Regulatory Update March 26, 2012

Leading the Past WeekContrasted with the story of the economic recovery, and how the biggest banks were announcing profitable earnings reports, the top story of the past week was that the rhetoric against the so-called Too Big to Fail banks was once again being ratcheted up.  This time by Dallas Fed President Richard Fisher, no bleeding heart liberal himself, who put forward a scathing report on how and why it was necessary to break up the biggest banks.  Despite this broadside against the nation’s largest financial institutions, the remain able to successfully influence Washington remains, as evident by the fact that the FSOC’s announcement of an extension to the comment period for its proposal to regulate money market funds.On Capitol Hill, things were quiet, as the Capitol prepared for President Obama’s Inauguration and the House had a short week before the Republican conference left for its retreat.  The biggest news emanating from that retreat was … [Read more...] about Financial Services Legislative and Regulatory Update – January 21, 2013