March 19: Court Rules Student Loan Trusts Subject to Consumer Laws

A recent ruling by a U.S. appeals court on March 19 has mandated that several investment trusts holding student loans are subject to federal consumer protection laws. This decision comes as a significant victory for the Consumer Financial Protection Bureau (CFPB), which has been in a legal battle over the debt collection practices of these trusts. The ruling, delivered by the Third Circuit, underscores the trusts' obligation to adhere to consumer protection laws due to their involvement in servicing and collecting on student loans.