CALL NOW!
FREE PHONE/VIRTUAL CONSULTATION

CFPB Wants Non-Bank Student Loan Collections under Umbrella

Banks have been under strict scrutiny in the wake of the housing crisis that involved allegations of predatory lending, robo-signing and a combination of other factors. A consumer watchdog group has also put the large banks that collect student loan payments whether private or ones that are backed by the government. The group ensures that those paying off student loans are not getting hit with huge fees, having payments misapplied or having to resubmit lost documents.

That group is the Consumer Financial Protection Bureau and it is asking that the over 49 million people with student loans serviced by non-banks be brought under the agency’s umbrella of protection. There are approximately seven large, non-bank services that make up “most of the activity” according to the CFPB.

The major concern for the CFPB’s request to bring the non-bank collection companies under their oversight is the shocking number of students who have fallen behind on scheduled payments. Students have repeatedly reported that these companies have failed to accurately apply payments that they have made and that the customer service when they attempt to contact the companies is sorely lacking.

Even the big banks seem to be on board with this request — at least to “even the playing field.” These banks say that they are under the strictest scrutiny while the non-bank servicers are not. This means that they are forced to incur costs that are not weight on the other side. Take for example having to submit information to the CFPB without even a hint of suspicious behavior. Information submission may not seem like a costly task, but the resources and expenses related to compiling, organizing and submitting can actually add up fast — especially with the amount of information requested in most instances.

Whether the Consumer Financial Protection Bureau is granted their request or not, individuals can seek the assistance of a debt relief attorney when collectors cross the lines.

Source: The Washington Post, “Gov’t consumer watchdog wants stricter oversight of student lenders as more borrowers default,” March 14, 2013

Our Tampa website provides information on creditor harassment and fair debt collection and access to a team of professionals who is experienced to handle these types of cases.

Archive

Video Testimonials

Tampa Bankruptcy Law Blog

How Does Getting Married Affect Bankruptcy?

If you are considering bankruptcy, you may be wondering how getting married affects your ability to file. The answer is...
Read More

How Does Filing for Bankruptcy Affect a Vehicle Loan?

If you're considering bankruptcy, you may be wondering if you'll be able to keep your car. The answer depends on...
Read More

8 Ways to Deal with Student Loan Debt

If you're one of the millions of Americans saddled with student loan debt, you're probably looking for ways to minimize...
Read More

Tips for Handling Credit Card Debt

If you're struggling with credit card debt, you're not alone. The average American household owes nearly $6000 in credit card...
Read More

Don’t Fall for These Common Bankruptcy Myths

There are a lot of misconceptions out there about bankruptcy. Working with a debt defense attorney is one of the...
Read More

Can Filing for Bankruptcy Affect My Career?

It’s common for people considering bankruptcy to wonder how filing affects their job. The answer to this question depends on...
Read More

Can I Fix My Credit After Bankruptcy?

Wondering how to improve credit after bankruptcy? Here's what you need to know. Bankruptcy can be a fresh start for...
Read More

What Happens If I Can’t Afford Chapter 13 Bankruptcy?

Are you wondering what happens if I can’t afford my chapter 13 payments? Here's what you need to know when...
Read More

Help I Regret Filing for Chapter 7 Bankruptcy

Bankruptcy isn't the right choice for everyone. Depending on your unique financial situation, you may be able to find other...
Read More

How a Bankruptcy Attorney Helps You Avoid Problems When Filing

Do you know what mistakes to avoid when filing for bankruptcy? If you're considering filing for bankruptcy, it's important to...
Read More

Bankruptcy

For The Next 5 Days GET A FREE BOOK About Bankruptcy

Learn More

Infographics

We are A Debt Relief Agency.
We help people file for bankruptcy under the Bankruptcy Code

Pay Online Bankruptcy Courses Newsletter Subscription

Call For A Free Initial Consultation

813.254.5696

Tampa Office

Law Offices of Robert M. Geller, P.A.
807 West Azeele Street
Tampa, FL 33606
T: (813) 254-5696
T: (800) 853-7549
F: (813) 253-3405

Map And Directions

St. Petersburg Office

Law Offices of Robert M. Geller, P.A.
125 5th Street South
(Wells Fargo Financial Center)
2nd Floor, Suite G
St. Petersburg, FL 33701
T: (727) 532-3939

Map And Directions

Pasco Office

23526 State Road 54
Lutz, FL 33559
T: (813) 336-2320

Map And Directions