News

CFPB begins taking student loan complaints

The Consumer Financial Protection Bureau began taking complaints regarding student loans on Monday.

The agency said that it expects billing complaints regarding collection practices, billing and advertising that will be directed to the Department of Education, TwinCities.com reports.

The CFPB also said that Americans owe more in student loan debt than credit card debt or debt from other unsecured lenders. Mortgages can be considered secured loans because banks have the authority to foreclose on a home if the borrower does not make payments.

“Getting a higher education can mean taking on a significant debt – a big decision with a lot of consequences,” CFPB Director Richard Cordray said, according to the Huffington Post.

Since inviting opinion in November, the CFPB has collected thousands of comments regarding private student loans. The agency is currently analyzing the comments to be included in a report to Congress later this year.

The CFPB was created as part of the 2010 Dodd-Frank Act to oversee largely unregulated or poorly regulated aspects of the financial industry, serving as a consumer watchdog agency.

Companies against which complaints have been lodged are expected to respond to complaints within 15 days and resolve complaints within 60 days. The agency is already accepting complaints regarding credit cards, bank accounts and mortgages.

Comments are closed.