Loan Trusts Challenge CFPB Enforcement of Collection Activities (1)

A student loan investment trust is taking its debt collection fight against the CFPB to the Third Circuit, a showdown that could alter the agency’s ability to enforce debt securitization companies’ compliance of consumer financial law.

A decision affirming a lower court ruling would open the door for the Consumer Financial Protection Bureau to bring more lawsuits with similar claims against investment companies that securitize other types of consumer debt, including mortgage, credit card, and auto loan debt, said Jonathan Pompan, the chair of Venable LLP’s consumer financial services practice group. The US Court of Appeals for the Third Circuit ...