Consumer Protection Chief Puts Focus On Student Loans

Career College Central summary:

  • Richard Cordray, the head of the Consumer Financial Protection Board, says staggering student loan debt has the same kind of ripple effect on the economy as the subprime mortgage crisis did, the head of the Consumer Financial Protection Board says.
  • The bureau tries to get relief for consumers with valid complaints, provides financial education tools for borrowers and has jurisdiction over large banks and other providers of consumer finance products and services and can take civil action against wrongdoers.
  • The bureau received 2,000 complaints about private student loans from Oct. 1, 2012, to March 31. Borrowers report problems with payment processing, obtaining documentation about their loans, finding accurate information about their loan status and repayment options, and accessing basic account information, according to CFPB's mid-year complaint review released last week.
  • Cordray, formerly Ohio's attorney general, received Senate confirmation as CFPB director last month after Congressional Republicans stalled his nomination for more than 18 months. The bureau was created in 2010 under the Dodd-Frank financial reform act.

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