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

Tampa Bankruptcy Law Blog

I’m Unemployed. Can I Still File for Bankruptcy?

Unemployed Bankruptcy Being in debt is bad enough, but if you’ve lost your job recently or accumulated debt because of...
Read More

How Will Filing for Bankruptcy Affect My Credit?

Will Bankruptcy Affect My Credit? Not paying your bills affects your credit negatively. And yet problems with credit are one...
Read More

Behind or In Default on Your Student Loan? Here’s What You Should Know

Student Loan Default If you’ve fallen behind on student loan payments or your student loans are in default, you aren’t...
Read More

Will Bankrutcy Affect My Job? Learn How Filing Affects You in the Workplace

Will Bankruptcy Affect My Job? Filing for bankruptcy raises many considerations. One of the most important is whether or not...
Read More

Can Bankruptcy Help Me If I’m Behind on Child Support?

Bankruptcy and Child Support Bankruptcy can help you with a lot of things. It can help you stop calls from...
Read More

Can You File for Bankruptcy When You’re Unemployed?

Bankruptcy and Unemployment Being in debt is bad enough, but if you’ve lost your job recently or accumulated debt because...
Read More

Bankruptcy and Eviction History

Eviction With the rate of evictions on the rise in recent months and the expectations that eviction numbers will grow,...
Read More

What to Expect Once You’ve Decided to File Bankruptcy from Home

File Bankruptcy from Home There are a few things that happen when you file bankruptcy from home. An automatic stay...
Read More

Will Filing for Bankruptcy Affect My Job Search? What You Need to Know about Unemployment and Bankruptcy

Unemployment and Bankruptcy Searching for a job when you are faced with a dire financial situation is difficult. If you’ve...
Read More

Will I Need to Go to Court If I File for Bankruptcy?

File for Bankruptcy from Home One of the most intimidating aspects of filing for bankruptcy is meeting in person with...
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

NACBA Logo comodo avvo1 avvo2 avvo3 LEA BBB Logo RG Seal

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