As consumers across the country worry about how they’ll afford next month’s bills amid the pandemic, executives accused of bilking student-loan borrowers out of roughly $15.6 million are receiving leniency because of their financial circumstances.
As consumers across the country worry about how they’ll afford next month’s bills amid the coronavirus pandemic, executives accused of bilking student-loan borrowers out of roughly $15.6 million are receiving leniency because of their financial circumstances.
In addition, the settlements ban those allegedly involved in the schemes from working in the debt-relief industry in the future. “This is yet one more reminder for the millions of Americans who get a student-loan bill each month that at every single turn the Trump administration has chosen predatory student-loan companies over their best interests,” said Seth Frotman, the executive director of the Student Borrower Protection Center, an advocacy group, and the former student loan ombudsman at the CFPB.
It’s not uncommon for people accused of financial crimes to pay less than what consumers lost Other agencies do sometimes allow for defendants to pay less than the cost of their illegal activity in cases of financial insolvency.
“Going after large entities is more the kind of thing you would see from an aggressive Democratic appointment, it’s what you see more from aggressive Democratic, elected state [attorneys general],” Cox said. “When you switch leadership that’s typically more aligned with the industry, you tend to see the enforcement either goes away, or it shifts down to smaller more scam-like entities.”
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