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FTC Sends a Flurry of Notices of Penalty Offenses, Warns of Steep Penalties for Unfair and Deceptive Business Practices

The Federal Trade Commission (“FTC”) recently sent Notices of Penalty Offenses (“Notices”) to more than 700 businesses, including consumer products companies, retailers and retail platforms, and advertising agencies, warning them about various practices that the FTC previously determined to be unfair or deceptive in violation of the FTC Act. The Notices identify a number of…

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CFPB: Income Share Agreements Are Student Loans and Must Follow Student Loan Rules

The Consumer Financial Protection Bureau (“CFPB”) reached a settlement with private student loan company Better Future Forward Inc. and related companies (collectively, “Better Future”) over allegedly deceptive practices in originating and servicing private student loans in the form of income share agreements (“ISAs”) in violation of the Dodd-Frank Consumer Financial Protection Act, the Truth in…

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Debt Collection Company Settles Allegations of Aggressive Collection Tactics for Old Debts

Massachusetts AG Maura Healey reached a settlement with national debt collection company Transworld Systems, Inc. (“Transworld”) to resolve allegations that it used unfair and deceptive debt collection practices in servicing a variety of debts, including student loans, in violation of Massachusetts consumer protection laws and the Massachusetts AG’s Debt Collection Regulations. According to the assurance…

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AGs Argue Trump-Era Student Borrower Defense Rule is Unlawful and Should Be Repealed

A group of 22 Democratic AGs, led by California AG Rob Bonta and Massachusetts AG Maura Healey, filed an amicus brief in the U.S. Court of Appeals for the Second Circuit in New York Legal Assistance Group (“NYLAG”) v. Cardona, Case No. 21-888, in support of NYLAG’s position that the Trump administration’s federal borrower defense rule, which made it harder for students to obtain debt relief, is arbitrary and capricious in violation of the Administrative Procedure Act.

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Bipartisan Group of Attorneys General Seeks to Increase Consumer Protections for Distance Education Students

A bipartisan group of 25 AGs, led by Maryland AG Brian Frosh, sent a letter to the National Council for State Authorization Reciprocity Agreements (“NC-SARA”)—which oversees reciprocity agreements joined by 49 states, the District of Columbia, Puerto Rico, and the U.S. Virgin Islands and sets standards and policies for participating institutions—urging it to institute stronger…

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