Student Loan Servicers Beware: The CFPB is Watching

Credit.com

There’s some hopeful news for student loan borrowers who continue to be frustrated with the student loan servicers that operate between them and the lenders that originated the student loans.

The Consumer Financial Protection Bureau announced that it intends to issue and actively enforce new and stronger measures to guard against violations of the Fair Debt Collections Practices Act. Most hearteningly, not only does the newly invigorated agency intend to focus on the loan servicing companies, but also the lenders that subcontracted the work in the first place.

This is a really big deal because the principle of first party responsibility cuts through the confusion by holding the originating lenders directly accountable for the actions of their agents.

So, if you’re experiencing student loan servicing problems, file a complaint with the CFPB. You can submit a complaint against the company servicing (or collecting) the debt, as well as a separate complaint against the company that originated the loan.


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