2015
Department of Education Wins Case Against Debt Collectors
Student Loan Lawyer / 0 Comments /It is well known that debt collectors hired by the federal Department of Education have often abused and harassed former students and their parents. After reviewing the situation, the Department of Education terminated the contracts of four debt collectors. Naturally, these companies were not pleased that they would be losing such a substantial amount of business and revenues. So what did they do? In our society what can be expected is a lawsuit. The four debt collectors joined in a lawsuit against the Department of Education. Fortunately, for all of the former students and their parents who have student loan debt remaining, the federal district court judge ruled against the debt collector companies. The judge dismissed their complaint. All of this is a good sign for two reasons. First, the Department of Education is beginning to take a harder line with its debt collectors thereby offering more protection to borrowers. Second, it would appear that the courts will not second guess the Department of Education. As future actions are taken by the Department of Education, updates will be provided on this blog.
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