To understand how screwed up the U.S. student loan collection industry is, read this insightful article posted on The New York Times’ website: “Behind he Lucative Assembly Line of Student Debt Lawsuits”
In it, this caught our eye: The CFPB had settled in September 2017 with two firms for more than $21 million in refunds and penalties for using illegal — and sometimes “sloppy” — collections methods. The CFPB spokesman was quoted as saying:
National Collegiate and Transworld “sued consumers for student loans they couldn’t prove were owed and filed false and misleading affidavits in courts across the country,” said Richard Cordray, the consumer bureau’s director.
To read the whole sordid story, click here…
This article will give you a keen insight into why you need to know what to do when a collection company comes calling — especially if the debt involved includes student loans. These companies are serious; you should stay vigilant to protect yourself.