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CFPB Sued for Failing to Supervise Federal Student Loan Servicers

Nov. 25, 2019, 6:01 PM

The Consumer Financial Protection Bureau violated federal law by abdicating its responsibility to supervise federal student loan servicers, according to a Nov. 25 complaint filed in Los Angeles federal court.

The CFPB’s failure to supervise or coordinate with the Department of Education violates the Administrative Procedure Act, the complaint says.

Student Debt Crisis is a nonprofit that educates and advocates for student loan borrowers. According to its complaint, the CFPB is responsible for supervising servicers of privately held student loans as well as “larger participants of the student loan servicing market,” including servicers of student loans held by the federal...

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