- GAO cites 'serious weaknesses' in federal oversight of debt management system
- U.S. ends contract with 5 debt collectors, citing misrepresentations to borrowers
- Consumer Financial Protection Bureau to seek oversight of loan servicers
- More Uncertainty in Student Loan Programs
- Problems plague Education Department debt management process
The Education Department is increasingly relying on collection agencies to obtain funds from those who have defaulted on student loans, but the department is failing to monitor complaints about these agencies, says a new report from the National Consumer Law Center. The center "found that contractors do not maintain accessible complaint systems and some agencies ignore the department’s minimum requirements for handling borrower grievances," the report says. "Overall, the complaint systems used by some collectors display a haphazard approach to resolving borrower disputes. The department also has failed to inform borrowers of the resources available through the agency to address complaints."
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