The Consumer Financial Protection Bureau (CFPB) said Tuesday that it has sued for-profit college operator Corinthian Colleges, Inc. for creating a loan program that was so complicated in structure, it actually exposed Corinthian to liability under the FDCPA as a collection agency. The company is also accused of a host of other financial violations.
Enterprise Recovery Systems, Inc.® (ERS) announced today that they hosted a congressional visit on Friday, August 22, 2014.
The National Consumer Law Center (NCLC) late Tuesday published a report that calls for the Department of Education to stop using private collection agencies to help recover delinquent student loans. But the report is misleading and inflammatory, going far beyond more reasoned studies from government agencies urging reform within the ED collection contract.
Quantrax Corporation, Inc. today announced that the company will continue its partnership with Financial Management Systems (FMS), an accounts receivable management (ARM) firm dedicated exclusively to the student loan sector.
The Eighth Circuit Court of Appeals recently affirmed a decision made by its Bankruptcy Appellate Panel last year that may grant a student loan borrower discharges on 15 separate private student loans totaling more than $118,000. The bankruptcy panel relied on a unique treatment of ability to repay that is not used in any other circuit.
For-profit higher education firm Corinthian Colleges revealed in a recent SEC filing that the CFPB has initiated settlement talks relating to an enforcement action over the company’s debt collection tactics and treatment of certain loans.
The U.S. Department of Education (ED), which hires Private Collection Agencies (PCAs), incentivizes those PCAs to subcontract to small businesses, and remains the largest Federal buyer of collection agency services, received an “A” grade for FY2013, with room for improvement in a few areas.
The student loan market is the second-largest debt pool in the U.S.; and since it’s also the fastest-growing collections market, it may soon become the biggest pool nationwide. This means that if your collection agency isn’t involved in the student loan market, then you’re missing out on your share of a $1 trillion pot.
ConServe employees, along with the company’s “Matching Gift Program,” donated a combined $8,540 through its “Jeans for Charity” program in July to Honor Flight Rochester and Honor Flight Buffalo.
The Higher Education Affordability Act, proposed by Sen. Tom Harkin (D-Iowa), would require the Department of Education to terminate contracts with private collection agencies if they violate the FDCPA or UDAAP.