CFPB Inks $22M In Settlements With Student Loan Cos.

By Jack Newsham (September 18, 2017, 7:41 PM EDT) -- Several private student loan holding trusts and their debt collector will pay nearly $22 million in fines and borrower reimbursements to head off lawsuits by the Consumer Financial Protection Bureau after the agency accused them of suing thousands of people to collect debts that they couldn't prove were owed.

A group of 15 entities that hold some 800,000 loans known as the National Collegiate Student Loan Trusts will pay at least $19.1 million and audit its loan portfolio, the federal watchdog said, while Transworld Systems Inc., which recruited lawyers to file debt collection suits on behalf of the trusts, will pay...

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