CFPB Student Loan Integrity and Transparency Act of 2019
This bill requires the Department of Education (ED) to provide information related to student loans to the Consumer Financial Protection Bureau (CFPB).
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.
It also requires the CFPB to maintain adequate staffing levels to carry out its duties.
[Congressional Bills 116th Congress]
[From the U.S. Government Publishing Office]
[S. 720 Introduced in Senate (IS)]
<DOC>
116th CONGRESS
1st Session
S. 720
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.
_______________________________________________________________________
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.
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled,
SECTION 1. SHORT TITLE.
This Act may be cited as the ``CFPB Student Loan Integrity and
Transparency Act of 2019''.
SEC. 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.
SEC. 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;''.
SEC. 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:
``SEC. 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.''.
SEC. 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).''.
<all>
Introduced in Senate
Read twice and referred to the Committee on Health, Education, Labor, and Pensions.
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