CFPB weighs in after years of borrowers arguing in court that their loans are eligible to be discharged in bankruptcy
For years, borrowers have been going to court claiming that student-loan companies were illegally collecting on debt they had discharged in bankruptcy. Now, the nation’s top consumer watchdog says it agrees — and is ordering the firms to give consumers their money back.
The announcement comes after years of court battles over debts often marketed as private student loans, but that attorneys and advocates have argued are a different type of IOUs and can be discharged in bankruptcy. Student loans are notoriously hard to wipe away in bankruptcy, but regular consumer debt is dischargeable and some student loans can in certain circumstances be viewed by courts as dischargeable consumer debt.
Navient didn’t immediately respond to a request for comment, but over the course of the litigation the company has pushed back at the idea that these loans are similar to other consumer debts for the purposes of bankruptcy proceedings.“The CFPB has said very clearly now these loans are not collectable,” said Mike Pierce the executive director of the Student Borrower Protection Center, an advocacy group that’s looked closely at this issue.
“If the findings that we reached so far are any indicator I’m not sure that we are looking at a fully compliant industry at this moment in time,” the CFPB official said. “We’re hoping that folks sit up and take notice.”
Argentina Últimas Noticias, Argentina Titulares
Similar News:También puedes leer noticias similares a ésta que hemos recopilado de otras fuentes de noticias.
San Jose middle school student stabbed, other student in custody: policeA 15-year-old middle school student at Sunrise Middle School in San Jose was stabbed on Wednesday and a fellow student is in custody, police said.
Leer más »
Student Reporter Hits It Out Of The Park With 5 Accurate SentencesTUCSON, AZ—Building on his recent winning streak of two almost correctly transcribed interviews and three basically right lede paragraphs, Arizona Daily Wildcat reporter Josh DeLuca completely knocked it out the park Friday with a story that had five accurate sentences, an achievement editors say has set a new…
Leer más »
Princeton student charged with joining mob’s Capitol attackApproximately 1,000 people have been charged with federal crimes related to the Capitol riot, which disrupted the joint session of Congress for certifying President Joe Biden’s electoral victory.
Leer más »
Student-loan borrowers might take on more debt after repayment reforms3 reasons student-loan borrowers could start taking on more debt once Biden's plan to lower monthly payments goes into effect
Leer más »
Albion student charged with making terroristic threat against school districtJUST IN: Orleans County deputies say a 16-year-old student allegedly threatened violence against the Albion Central School District on Snapchat. Deputies say the suspect claims the post was 'just a joke,' and he was 'just playing around.'
Leer más »
Alabama teacher arrested for allegedly having sexual relationship with studentA teacher and coach at a Mobile County private school was arrested for allegedly having a sexual relationship with his 16-year-old student, authorities said Tuesday.
Leer más »