A major student loan servicer is facing an enforcement action from the Consumer Financial Protection Bureau alleging it falsely reported students’ debt to consumer credit reporting companies and attempted to collect on loans wiped out through bankruptcy.
The CFPB filed a suit Friday in the US District Court for the Middle District of Pennsylvania seeking a permanent injunction against the Pennsylvania Higher Education Assistance Agency, which does business as American Education Services, marking the federal consumer finance watchdog’s second action against the servicer this month.
The CFPB is also seeking refunds for borrowers and civil money penalties under federal consumer ...
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