Filing Complaints About Student Loan Servicing Companies – Video
What you need to know before you file
Just last year, the Consumer Financial Protection Bureau (CFPB) received over 5,000 complaints from borrowers reporting issues with their service loan providers. If a borrower has been wronged by their service provider by having issues with aggressive collection tactics, incorrect account balances, inaccurate credit reporting, or poor customer service and communication, they have the option of filing a complaint with the CFPB. Before deciding to file a complaint, the borrower should contact the service loan provider directly in order to address the issue firsthand. If that fails, here are some helpful tips for filing a complaint about student loans.
The CFPB can oversee the entire student loan servicing market. They also have access to overlooking the nonbank companies, which are now responsible for about 90% of new loans that borrowers are using. In order to submit a complaint, borrowers can access the Consumer Financial Protection Bureau’s website and fill out the complaint form. The CFPB will then forward the complaint to the service loan provider and work to resolve the issue directly. Another option for filing a complaint is to fill out the “Tell Us Your Story” under the CFPB’s “complaints” tab on their website.
There are other organizations that borrowers may issue complaints to in regards to their student loans, such as the Federal Student Aid Ombudsman Group or the Federal Trade Commission. If going directly to the service provider does not reap any results, further action is required. In the case that there is an issue with a federal loan, the borrower may file a complaint to the Federal Student Aid Ombudsman Group. On the other hand, if the borrower’s loan has fallen into “debt collection”, then they must file a complaint with the Federal Trade Commission.
In order to make communication run smoothly between borrower and loan servicer, it is in the borrower’s best interest to keep a thorough record of all communications between themselves and their service provider in the case that they must file a complaint.
As of last summer, through working with the Student Aid Bill of Rights, the US Department of Education has launched a new website that allows borrowers to file complaints directly to the Department of Education. This gives borrowers better access to getting issues with loan service companies resolved quickly and efficiently. There are many different avenues that borrowers can take when filing complaints against loan servicers. A helpful tool to use to reference when navigating student loan service companies, is the Federal Student Aid Ombudsman Information Checklist
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