CALL FOR A FREE
INITIAL CONSULTATION
813.254.5696

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.

Tampa Bankruptcy Law Blog

3 Reasons Why Bankruptcy Cases Get Dismissed and What This Means for You

Bankruptcy Case Dismissed There are two possible outcomes for those filing for bankruptcy. It doesn’t matter if you qualify for...
Read More

Who Files for Bankruptcy?

Should I File for Bankruptcy? If you’re considering bankruptcy and you feel as if you’re the only person in the...
Read More

3 Reasons Your Student Loan Debt is Ruining Your Financial Future and How Bankruptcy Might Help

Student Loan Debt Taking out a loan or multiple loans to attend college is nothing new. Students have been using...
Read More

What Happens If You Miss Your 341 Meeting?

341 Meetings are One of the Most Important Obligations in Bankruptcy There are several requirements you must meet when you...
Read More

3 Things to Help You with Post Bankruptcy Credit Repair

Bankruptcy Credit Repair One of the biggest challenges you’ll have post-bankruptcy is getting credit extended to you. But for most...
Read More

What is the Real Reason People are Filing for Bankruptcy?

Can filing for bankruptcy help you with unpaid medical bills? One of the most common misconceptions about bankruptcy is that...
Read More

What You Need to Know about Bankruptcy Court

Bankruptcy Court Bankruptcy is a process that many people find intimidating. In part, this is because they must turn their...
Read More

What to Expect from Bankruptcy Counseling

Bankruptcy Counseling Filing for bankruptcy is not an easy decision. For many, it’s their only option for getting the debt...
Read More

Why Hiring a Bankruptcy Attorney is Worth the $ [Infographic]

Everyone who files for bankruptcy must complete a bankruptcy petition. It can be up to 40 pages and filled with...
Read More

What Really Happens When You Declare Bankruptcy?

How to Declare Bankruptcy Bankruptcy is a last resort for many who file. After attempting to clean up a messy...
Read More

Contact Us

Search Website

Archive

Request a FREE Consultation

For The Next 5 Days Get A Free Book About Bankruptcy

Bankruptcy Book

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

Pay OnlineBankruptcy Courses

National Association Of Consumer Advocates Logocomodoavvo1avvo2avvo3LEA
BBB LogoRG Seal

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


Tampa Bankruptcy Lawyers Map

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





Maps & Directions

At the Tampa Bay law firm, the Law Offices of Robert M. Geller, P.A., we help people with consumer bankruptcy matters in the Tampa Bay-St. Petersburg,  Florida communities such as Clearwater,     St. Petersburg, Tampa, Thonotosassa, Riverview, Lutz, Plant City, Brandon, Carrollwood, Wesley Chapel, St. Petersburg Beach, Lakeland, Mulberry, Dade City, Pinellas Park, Largo, Seminole, Odessa, Oldsmar and Lithia, and counties such as Hillsborough County, Pinellas County, Pasco County, Polk County and Manatee County.