The U.S. Department of Education said Friday it will end contracts with five companies that collect defaulted federal student loans after finding they made “materially inaccurate representations” to struggling borrowers.
The agency said it was winding down its debt-collection agreements with Navient-owned Pioneer Credit Recovery, as well as Coast Professional, Enterprise Recovery Systems, National Recoveries and West Asset Management.
Those companies are among the 22 collection agencies that the department hires to pursue borrowers who have fallen behind on their loan payments.
The five debt collectors being terminated, the department said, provided borrowers with “inaccurate information at unacceptably high rates” about the benefits of a federal program that allows borrowers to get their loans out of default.
Read more at Inside Higher Ed: https://www.insidehighered.com/news/2015/03/02/us-ends-contract-5-debt-collectors-citing-misrepresentations-borrowers
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