Reuters
Several investment trusts that hold student loans must follow federal consumer protection law because they serviced and collected on the loans, a U.S. appeals court ruled on Tuesday in a win for the consumer finance watchdog agency. The ruling by the 3rd U.S. Circuit Court of Appeals in Philadelphia allows the Consumer Financial Protection Bureau to continue its lawsuit against the trusts, which were formed to purchase 800,000 private student loans from the original lenders and collect on them for investors. The CFPB sued the 15 trusts in 2017, saying they'd relied on false or inadequate documentation to file thousands of lawsuits against borrowers, or sued to collect debt after deadlines to do so had elapsed.