Bloomberg Law
March 16, 2023, 6:54 PM

CFPB Warns Servicers to Stop Collecting Discharged Student Debt

Evan Weinberger
Evan Weinberger

The Consumer Financial Protection Bureau plans to boost scrutiny of debt servicers that attempt to collect on student loan debt that has been discharged in bankruptcy.

The CFPB’s recent examinations discovered that some student loan servicers had been illegally attempting to collect on certain categories of private student loans that had been discharged through bankruptcy court orders, the agency said in a Thursday bulletin. The CFPB added that it has ordered some servicers to stop their illegal collections practices and return money to harmed consumers.

“When a court orders the discharge of a loan, lenders and servicers should not ...

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