CFPB Student Loan Integrity and Transparency Act of 2019

Bill: 116-s-720
Sponsor: full_name: Sen. Udall, Tom [D-NM]
Introduced: 2019-03-07
Policy area: Education
Subjects: Congressional oversight

Consumer Financial Protection Bureau

Consumer credit

Executive agency funding and structure

Government employee pay, benefits, personnel management

Government information and archives

Higher education

Public contracts and procurement

Student aid and college costs
Latest action: action_date: 2019-03-07
text: Read twice and referred to the Committee on Health, Education, Labor, and Pensions.

Summaries:
action_date: 2019-03-07
action_desc: Introduced in Senate
text: <p><b>CFPB Student Loan Integrity and Transparency Act of 2019</b></p> <p>This bill requires the Department of Education (ED) to provide information related to student loans to the Consumer Financial Protection Bureau (CFPB).</p> <p>The bill prohibits ED from entering into an agreement with a contractor or vendor that services student loans unless the contractor or vendor agrees to provide requested information to the CFPB.</p> <p>It also requires the CFPB to maintain adequate staffing levels to carry out its duties.</p>

tv_txt: II 116th CONGRESS 1st Session S. 720 IN THE SENATE OF THE UNITED STATES March 7, 2019 Mr. Udall (for himself, Ms. Warren , Mr. Blumenthal , Mr. Brown , Mr. Van Hollen , Mr. Schatz , Ms. Harris , Ms. Klobuchar , Ms. Duckworth , and Mr. Menendez ) introduced the following bill; which was read twice and referred to the Committee on Health, Education, Labor, and Pensions A BILL To require the student loan ombudsman of the Department of Education to provide student loan data to the Bureau of Consumer Financial Protection, and for other purposes.

1. Short title This Act may be cited as the CFPB Student Loan Integrity and Transparency Act of 2019 . 2. Findings Congress finds the following: (1) The total amount of outstanding student loans just surpassed $1,500,000,000,000. (2) Student loans are the biggest category of consumer borrowing after mortgages. (3) Since the Consumer Financial Protection Act of 2010 ( 12 U.S.C. 5481 et seq.) established the Consumer Financial Protection Bureau, the Bureau has fought to ensure families receive a fair shake as they strive for the American Dream. (4) The Consumer Financial Protection Act of 2010 established the Consumer Financial Protection Bureau’s Office of Students and Young Consumers in 2012 to assist students who are mistreated or misled by predatory lenders. (5) Since its creation, the Office of Students and Young Consumers, led by the Student Loan Ombudsman, has defended military families in the United States from predatory lenders and for-profit colleges, and other unscrupulous businesses. (6) The Office of Students and Young Consumers helped tens of thousands of active-duty military service members who were being overcharged for student loans, and coordinating with the United States Justice Department, succeeded in returning $60,000,000 to the service members, and required the industry to improve its practices. (7) The Office of Students and Young Consumers has collected and analyzed hundreds of thousands of student complaints. (8) The Office of Students and Young Consumers has recovered more than $750,000,000 on behalf of defrauded students. (9) The Office of Students and Young Consumers has been instrumental in the shutdown of for-profit universities and colleges that had been accused of predatory practices. (10) The Office of Students and Young Consumers collected data and authored a report that showed large banks overcharged college students fees that were higher than many of their competitors. The report remained unpublished by the Administration until a recent FOIA request opened it to the public. (11) The Department of Education Office of Inspector General released a concerning report on February 12, 2019, that highlighted the alarming frequency at which student loan contractors and vendors engaged in noncompliance with Federal requirements for servicing student loans. 3. Department of Education student loan information Section 141(f)(3) of the Higher Education Act of 1965 ( 20 U.S.C. 1018(f)(3) ) is amended— (1) by redesignating subparagraphs (A) and (B) as subparagraphs (B) and (C), respectively; and (2) by inserting before subparagraph (B) the following: (A) provide information relating to student loans to the Director of the Consumer Financial Protection Bureau or the ombudsman of the Consumer Financial Protection Bureau designated under section 1035 of the Consumer Financial Protection Act of 2010 ( 12 U.S.C. 5535 ) as requested by the Director of the Consumer Financial Protection Bureau or that ombudsman; . 4. Student loan contractor and vendor agreements Part G of title IV of the Higher Education Act of 1965 ( 20 U.S.C. 1088 et seq.) is amended by inserting after section 486A the following: 486B. Contractor and vendor agreements The Secretary shall not enter into an agreement with a contractor or vendor that services loans under this title unless, as part of that agreement, such contractor or vendor asserts that the contractor or vendor will provide information to the Director of the Consumer Financial Protection Bureau or the ombudsman of the Consumer Financial Protection Bureau designated under section 1035 of the Consumer Financial Protection Act of 2010 ( 12 U.S.C. 5535 ) as requested by the Director of the Consumer Financial Protection Bureau or that ombudsman. . 5. Duty to provide adequate staffing; Memoranda of understanding (a) Duty To provide adequate staffing Section 1013(a)(1) of the Consumer Financial Protection Act of 2010 ( 12 U.S.C. 5493(a)(1) ) is amended by adding at the end the following: (D) Duty to provide adequate staffing Notwithstanding subparagraph (A), the Director shall ensure that each specific functional unit and office described under subsections (b), (c), (d), (e), and (g) and any other unit and office with supervisory and enforcement duties, is provided with sufficient staff to carry out the functions, duties, and coordination of that unit or office, as applicable. . (b) Memoranda of understanding (1) Reestablishment of memoranda of understanding The memoranda of understanding between the Bureau of Consumer Financial Protection and the Department of Education entitled Memorandum of Understanding Between the Bureau of Consumer Financial Protection and the U.S. Department of Education Concerning the Sharing of Information (October 19, 2011) and Memorandum of Understanding Concerning Supervisory and Oversight Cooperation and Related Information Sharing Between the U.S. Department of Education and the Consumer Financial Protection Bureau (January 9, 2014)— (A) shall remain in effect and may not be terminated by any party to such memoranda; and (B) may only be amended or revised if the parties to the memoranda determine that such amendment or revision would promote better interagency coordination to the benefit of consumers. (2) Report on current MOUs Not later than the end of the 30-day period beginning on the date of enactment of this Act, the Director of the Bureau of Consumer Financial Protection shall submit to the Committee on Banking, Housing, and Urban Affairs of the Senate and the Committee on Financial Services of the House of Representatives a report listing— (A) each memorandum of understanding in effect on November 24, 2017, to which the Bureau of Consumer Financial Protection was a party; (B) any changes made to a memorandum described in subparagraph (A) after November 24, 2017, including any memorandum of understanding rescinded since that date; and (C) a justification for each change or rescission described in subparagraph (B). (3) Semi-annual report on MOUs Section 1016(c) of the Consumer Financial Protection Act of 2010 ( 12 U.S.C. 5496(c) ) is amended— (A) in paragraph (8), by striking and at the end; (B) in paragraph (9), by striking the period at the end and inserting a semicolon; and (C) by adding at the end the following: (10) a list of each memorandum of understanding in effect, as of the date on which the report is submitted, to which the Bureau is a party; (11) any changes made to a memorandum of understanding to which the Bureau is a party after the date on which the previous report required under subsection (b) was submitted; and (12) a justification for each change described in paragraph (11). .