The United States Department Of Education Gives The Boot To Coast Professional, Enterprise Recovery Systems, National Recoveries, Pioneer Credit Recovery And West Asset Management

us department of education

The Department of Education (ED) contracts with 22 private collection agencies to assist them in the collection of student loans. However, it is not uncommon for these private collection agencies to:

1. Give false information to student loan debtors about their options.

2. Engage in unfair and deceptive practices that violate the Fair Debt Collection Practice Act (FDCPA) and Unfair, Deceptive or Abusive Acts or Practices Laws (UDAP).

ED’s offices performed a review of the 22 private collection agencies to ensure that these agencies were complying with the terms of their contract. Guess what?

Given the Boot

ED found that the agents of Coast Professional, Enterprise Recovery Systems, National Recoveries, Pioneer Credit Recovery and West Asset Management made material, inaccurate representation to borrowers about:

1. The terms of loan rehabilitation programs which allow a defaulted borrower to rehabilitate their loan after they have made 9 on-time payments in a period of 10 months.

2. Failed to give accurate information about and negotiate a reasonable and affordable payment.

3. Gave inaccurate and misleading information about how rehabilitation program would impact a student loan borrowers credit report and, gave incorrect information about the waiver of certain collection fees.

We applaud ED for terminating these contracts. We, at the Student Loan Law Resolutions Center, urge ED to increase collection performance and standards to ensure that all defaulted student loan borrowers are treated fairly.

Getting Your Loan out of Default is the 1st Step

Getting a student loan out of default through rehabilitation is the first step to placing a struggling student loan borrower into an income-based repayment plan. Give us a call today to begin the process of finding out your situation about your student loans.

Resources provided by: Department of Federal FSA

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