They were asleep at the wheel on Wells Fargo for 2-years after a journalist told them about accounts created without customer permission. Now they are doing this:
Apparently their role is to make it so as few people as possible have to repay student loans. Anything resembling an expectation that people repay loans according to terms and conditions of the paperwork they signed is discrimination. They are blaming loan companies not the 8M people that went over 9 months without making a single payment.
Also, where’s the integrity for credit scores? 9 straight payments to a debt collector and they wipe the loan default off your credit report.
How do student loan servicers discriminate? Are they reporting default from some people and ignore others? Are they favoring certain races or ages by reporting credit default differently?
This is so vague, it gave an accusation of credit discrimination but never give a definition or some common examples.
“She said her team has identified student loan servicing as an area with substantial risk of credit discrimination. Although Ficklin would not explicitly say how the CFPB reached that conclusion, she said her office decides what to prioritize based on consumer complaints, tips from advocacy groups and data analysis.”