CFPB: Student loan servicers must return illegally collected debt

Source: Yahoo! News

“The nation’s most powerful financial watchdog agency directed student loan servicers that unlawfully collected debt discharged in bankruptcy to return those funds to affected borrowers. It also warned all servicers against the illegal practice and to cease those efforts immediately. The bulletin issued by the Consumer Financial Protection Bureau (CFPB) on Thursday comes after the agency’s examiners found some private student loan servicers did not determine whether loans were discharged and continued to bill and collect payments, running afoul of the Consumer Financial Protection Act’s ‘prohibition on unfair, deceptive, or abusive acts or practices.'” (03/16/23)