Department of Education has fired several Debt Collectors including Pioneer Credit for sleazy collection practices.
The Department of Education has turned a blind eye to the collection harassment and debtor abuse that debt collectors that it has hired collect student loan debt. Well, no more. On Friday, February 27, 2015, it announced that its firing 5 debt collectors for having “unacceptably high rates” of misleading student borrowers. It kinda makes me wonder what an acceptable rate of screwing student debtors is.
The most prominent student loan debt collector to get the ax is Pioneer Credit Recovery which is owned by Navient Corp. This student loan company formerly known as Sallie Mae. Navient is having its issues with the Consumer Financial Protection Bureau. Kinda weird having one governmental agentcy investigate a formerly government controlled agency.
Many student loan borrowers are in default; as many as 7,000,000 such loans. Collecting on this debt is profitable and lucrative. Indeed, there was a story a few years ago about the obscene amounts of money that student loan debt collectors and the CEOs of those companies make.
The latest word is that the DOE is going to take back some of these cases that it has handed to third party debt collectors and start working these cases themselves. The other collection companies getting axed are Coast Professional, Enterprise Recovery Systems, National Recoveries and West Asset Management. In 2011, the FTC went after West Asset accusing it of violating the Fair Debt Collection Practices Act. It hit West with a $2.8 million fine.
My take on this is to not get too excited. A debt collector working for a private company is not much different than one working for the government. The biggest difference is that the one working for the private company can get sued along with the company. The collector working for the government may be shielded from lawsuits under the doctrine of Governmental Immunity” If that’s the case, I would cancel the champagne celebration because things just took a turn for the worse for consumers.
If you have been victimized by a debt collector or have items on your credit report that are incorrect, call or email Attorney Gary Nitzkin at firstname.lastname@example.org for a free consultation at (888) 293-2882. For more information about your credit rights as a consumer, visit our website at www.micreditlawyer.com for informative how to videos on consumer financial protection. We are here to fight for you. Call us today! 888-293-2882.
We are the largest filer of FDCPA and FCRA lawsuits in Michigan.
MICHIGAN CONSUMER CREDIT LAWYERS
Southfield, MI 48033
- Bad Credit
- Bad Debt Collection info floating around the 'Net
- Car Buying
- Collection Agencies breaking the law
- Collection Law Firms in the News
- Collection Laws Michigan
- Credit Bureau
- Credit Card
- Credit Repair
- Credit Repair Company
- Credit Repair Law Firm
- Credit Repair Lawyer
- Credit Report
- Credit Reporting Traps
- Credit Score
- Debt Collection Laws – Federal
- Debt Collection Nuts and Bolts
- Debt Collection Tricks and Traps
- Debt Collector
- Debt Collectors
- Debt Forgiveness
- Debt Relief
- Equity Experts
- Fair Credit Reporting Act
- Fair Debt Collection Practices Act
- Foreclosure Defense
- Free Credit Repair
- Free Credit Repair Lawyer
- Getting sued for consumer debt? Fight BACK!
- Home Buying
- Identity Theft
- Mortgage Foreclosure Defense
- Payday Lenders
- Payday Loan
- Payday Loans
- Scams and Scam Collectors
- Smart Phone
- Student Loan Debt Collection
- Telephone Consumer Protection Act
- Your credit and credit score