CFPB Heightens Scrutiny of Unlawful Collection of Payments on Discharged Student Loans

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WASHINGTON, D.C. – Today, the Consumer Financial Protection Bureau (CFPB) released a bulletin warning servicers of their obligation to halt unlawful conduct with respect to private student loans that have been discharged by bankruptcy courts. The bulletin details recent findings by CFPB examiners that certain loan servicers were illegally returning loans to collections after bankruptcy courts had discharged the loans. The CFPB is directing these servicers to return illegally collected payments to affected consumers and immediately cease these unlawful collection tactics. The bulletin also makes clear that the CFPB will continue to examine student loan servicers’ handling of these loans to detect whether these illegal practices persist at other companies.

“When a court orders the discharge of a loan, lenders and servicers should not treat this as a suggestion,” said CFPB Director Rohit Chopra. “The CFPB has found that some servicers are ignoring bankruptcy court orders. The student loan servicing industry should ensure that their collection practices are compliant with the law.”

Warning Servicers Against Collecting Discharged Debt

The bulletin details unfair practices observed by CFPB examiners in reviews of the way certain student loan servicers handled private loan accounts when consumers received loan discharges through bankruptcy court orders. The bulletin also makes clear that the CFPB will continue to examine servicer handling of these loans, and puts the servicing industry on notice that the CFPB intends to take action where it finds that servicers are collecting on debts that have been discharged.

Although many student loans are subject to an “undue hardship” standard and require a separate proceeding to be discharged in bankruptcy, some private student loans can be discharged in a standard bankruptcy proceeding, just like most other unsecured consumer debts. For this subset of private student loans, a bankruptcy discharge order eliminates the consumer’s debt.

Some examples of student loans eligible for standard bankruptcy discharge include:

  • Loans made to attend schools that are not eligible to receive U.S. Federal student aid, such as unaccredited schools and foreign schools (“non-Title IV schools”)
  • Loans to students attending school less than half-time
  • Loans made in amounts in excess of the cost of attendance, which are often disbursed directly to the borrower, instead of the school
  • Loans made to cover fees and living expenses incurred while studying for the bar exam or other professional exams
  • Loans made to cover fees, living expenses, and moving costs associated with medical or dental residency
  • Other loans made for non-qualified higher education expenses

Unfair Practices in Collecting Discharged Student Loans

CFPB examiners identified student loan servicers who failed to distinguish between education loans that are discharged in a standard bankruptcy proceeding and loans that are not. As a result, servicers improperly sought to collect on loans that had been discharged by bankruptcy courts. The CFPB found that, when faced with continued collection activities in violation of bankruptcy court orders, many borrowers continued to make payments, sometimes paying thousands of dollars on debts that they no longer owed. These supervisory findings build on previous work from 2014, when the CFPB found that student loan servicers deceptively told borrowers that their loans were not dischargeable in bankruptcy even though the Bankruptcy Code does allow for discharge.

The CFPB intends to continue to hold industry accountable for these illegal collection practices. The CFPB expects servicers to proactively identify student loans that are discharged via standard bankruptcy orders, permanently cease collections, and refund any consumers who have been affected by unlawful collections in the past.

Read today’s bulletin, Unfair Billing and Collection Practices After Bankruptcy Discharges of Certain Student Loan Debt.

Consumers having an issue with a consumer financial product or service can submit a complaint with the CFPB online or by calling (855) 411-CFPB (2372).

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The Consumer Financial Protection Bureau (CFPB) is a 21st century agency that helps consumer finance markets work by making rules more effective, by consistently and fairly enforcing those rules, and by empowering consumers to take more control over their economic lives. For more information, visit www.consumerfinance.gov.

Official news published at https://www.consumerfinance.gov/about-us/newsroom/cfpb-heightens-scrutiny-of-unlawful-collection-of-payments-on-discharged-student-loans/

Images courtesy of PixaBay

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ARuVR Becomes First XR Platform to Be Awarded ‘Accredited’ Provider Status by LPI

- ARuVR® awarded 'Accredited Learning Technologies' provider status for its enterprise-grade Extended Reality (XR) training platform - LPI recognises ARuVR® as forerunner in rapidly growing XR industry

ARuVR®, a multi-award-winning end-to-end Extended Reality (XR) training platform for enterprises, today announced that it has been awarded the status of Accredited Learning Technologies Provider by the LPI (Learning and Performance Institute), the leading global authority on workplace learning and development.

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ARuVR®'s LPI Accredited Learning Technologies Provider status recognises the company's dedication to high quality and process improvement in providing learning, development, and training services to clients. This accreditation covers the Extended, Augmented and Virtual Reality products and professional services supplied by ARuVR® to their clients on a worldwide basis. ARuVR® followed a rigorous and in-depth process and was assessed on several key performance indicators, including business integrity, client value proposition, delivery capability, quality and performance management, people development, and business stability. ARuVR®'s overall KPI score was near an outstanding 100% across all sections.

Edmund Monk, CEO of the LPI, said: "We have extremely high standards for accreditation, and we are proud to commend ARuVR on their achievement. We work with our accredited organisations to ensure that they not only meet our standards but that they continue to improve. This way, organisations can be confident that they are working with the best." 

The LPI is the foremost accreditation and membership body for the learning and development profession with a global reputation. The accreditation process employs a highly robust framework, developed over many years by learning experts and validated by data from thousands of organisations to measure, benchmark and improve the capability and performance of learning professionals and learning providers.

Frank Furnari, CEO & Founder, ARuVR®, said: "As the market for XR training solutions grows exponentially, we are delighted to be the first in the sector to achieve accreditation status by the LPI. We are committed to providing our global clients with not only the highest levels of quality and service but also to bring AR and VR to the training industry, in a way in which any organisation can embrace and benefit from."

Contact Information:
Andrew Durkin
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andrew@mustardpr.com
0044 7887998407


Original Source: ARuVR Becomes First XR Platform to Be Awarded 'Accredited' Provider Status by LPI

Keen’s Buildings Extends Partnership With RJ Hampshire for the 2023 Pro Motocross Season

"RJ is an incredibly talented rider, and we have no doubt that he has what it takes to bring home the championship this year," Keen stated.

Keen’s Buildings Extends Partnership With RJ Hampshire for the 2023 Pro Motocross Season
RJ Hampshire #24

RJ Hampshire, Kicking off the 2023 Pro Motocross Championship Season with Keens Buildings and the Rockstar Energy Husqvarna Factory Racing Team

Keen's Buildings, a leading provider of high-quality storage solutions, is thrilled to announce the extension of their partnership with RJ Hampshire #24 for the upcoming 2023 Pro Motocross Championship season. RJ Hampshire, an accomplished rider representing the Rockstar Energy Husqvarna Factory Racing Team, has proven to be an outstanding brand ambassador for Keen's Buildings.

Kevin Keen, CEO of Keen's Buildings, expressed his excitement about the continued collaboration with RJ Hampshire. "We are excited to extend our partnership with RJ for the 2023 Pro Motocross season," said Keen. "RJ has been an incredible asset to our brand, and we are confident in his abilities to excel on the track."

As a prominent figure in the motocross industry, RJ Hampshire has showcased immense talent, determination, and sportsmanship throughout his career. His achievements on the track and his dedication to his craft align perfectly with Keen's Buildings' values and commitment to excellence.

The partnership between Keen's Buildings and RJ Hampshire has proven to be mutually beneficial. It not only highlights the shared passion for motorsports but also underscores the importance of quality, durability, and reliability - qualities that both Keen's Buildings and RJ Hampshire embody.

With the 2023 Pro Motocross season on the horizon, Keen's Buildings and RJ Hampshire are eager to pursue their shared goal of championship success. Kevin Keen has expressed his confidence in RJ's abilities and believes that "RJ is an incredibly talented rider, and we have no doubt that he has what it takes to bring home the championship this year," Keen stated.

The 2023 Pro Motocross Championship, Race Schedule kicks off tomorrow, May 27, 2003, at the Fox Raceway in Pala, CA.

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Contact Information:
Craig Heineman
Marketing
craigh@keensbuildings.com
(386) 364-7995


Original Source: Keen's Buildings Extends Partnership With RJ Hampshire for the 2023 Pro Motocross Season
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