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Student Loan Collections

Debt collectors work with universities, colleges and private lenders to collect student loans. For education loans backed by the federal government, the U.S. Department of Education has a clearly-defined collection program that uses private collection agencies. Recent changes in federal law will shift all previously federally backed loans to direct loans from the federal government, cutting private lenders out of the equation.

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2nd CFPB Enforcement Action This Week Involving Debt Collection, Now Against Discover Bank

On the heels of yesterday’s enforcement action against Citibank and its subsidiary Department Stores National Bank, today the CFPB took action against Discover Bank and its affiliates for illegal private student loan servicing practices. The company also engaged in illegal debt collection tactics, including calling consumers early in the morning and late at night.

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USA Funds Sues Department of Education Over Collection Fees

Student loan guaranty agency USA Funds (USA) filed suit last week in federal court against the Department of Education over a letter the Department sent on July 10, 2015 prohibiting agencies from imposing collection fees on borrowers who default on their loans but initiate payment arrangements within 60 days. The agency claims the letter amounts to capricious and irrational rulemaking that will harm consumers.

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CFPB Finds 90 Percent Rejection Rate For Student Loan co-Signers Seeking Release

Today Rohit Chopra, the Consumer Financial Protection Bureau (CFPB) Student Loan Ombudsman – who also just announced he is stepping down after next week - released a report finding high rates of consumers are being rejected for co-signer release on their private student loans, based on its review of industry practices. The Bureau uncovered problematic industry practices that may […]

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Veteran-Owned Firms Sought to Collect Federal Student Loans

Collingswood, NJ: Fed Cetera has announced it is seeking veteran-owned, small-business collection agencies to respond to a Request for Information (RFI) to compete for new business collecting Federal student loans in 2015 and beyond. Such firms may be selected to work as Federal subcontractors on United States Department of Education (ED) Private Collection Agency (PCA) […]

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WOSB Small Business Status Achieved by NRS

Lockport, NY: National Recovery Solutions, LLC (NRS www.nrsolutionsllc.com), based in Lockport, NY, today announced it is a woman-owned small business (WOSB) following a company restructuring in which Kinda Baker, a company founder in 2006, took a majority ownership in the firm and assumed CEO responsibilities. This ownership change enables creditors and government contractors to retain […]

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Five Percent of Recent Grads Say They’ll Never Pay Off Their Debt

On the same day that the Consumer Financial Protection Bureau (CFPB), the Department of Education, and Department of Treasury release a joint Request for Information (RFI) about student loan servicing, the website MagnifyMoney.com has released the results of a survey of student loan borrowers about their finances. They surveyed 1,000 adults under age 35 who […]