On December 3, 2013, the Consumer Financial Protection Bureau (CFPB) issued a new rule allowing it to supervise non-bank student loan servicers. Servicers are the consumer’s main point of contact on the loan; the servicer manages the account, collects payments, processes forbearance applications, etc.
According to the Director of the CFPB, Richard Cordray: “Student loan borrowers should be able to rest assured that when they make a payment toward their loans, the company that takes their money is playing by the rules…This rule brings new oversight to those large student loan servicers that touch tens of millions of borrowers.”
The new rule expands CFPB supervision to any non-bank student loan servicer that handles more than 1 million borrower accounts, which the CFPB estimates to be seven current servicers who combined manage over 49 million borrower accounts.
Read more here: http://www.huntingtonnews.net/77868
If you have a private student loan or other consumer debts and are being mistreated by your servicer or simply unable to afford payments, contact an attorney who can help protect your rights and help get you out of debt.