Daily Archives: September 11, 2014

Some Debt Collectors ARE Worse Than Bankers

Last week I asked the question about debt collectors;  this week I answer DEBT collector HELL

it.

The regular violators, which is a large group, should be cast into the fires of debt collector hell, as in the picture.

For certain, the student loan debt collectors who, allegedly at this point:

Navient Corp, the student loan specialist formerly owned by Sallie Mae, with new business some three months after federal prosecutors accused the company of intentionally cheating troops on their federal student loans, according to three sources familiar with the administration’s plans.

What did these student loan debt collectors do?

From the same story:

In May, Navient and its former parent, Sallie Mae, agreed to pay a combined $139 million to resolve Department of Justice allegations that the two companies had swindled up to 60,000 service members out of tens of millions of dollars and forced other borrowers to pay unfair fees on their student loans

What are these debt collectors?  Too big to fail?

At least, the government stopped doing business with them, right?

Not.

Instead of taking them off the approved list, the Department of Education is requiring MORE students to use Navient, Sallie Mae’s new name, as their student loan servicer.

Yikes.

Well, maybe, this servicemember thing was an isolated incident.

As we used to tell courts our client’s drunk driving was.  An isolated incident.

Not according to the records we have:

Over the last two years, Navient — as part of Sallie Mae — has finished in last place among the department’s four major loan specialists. The company is expected to finish in third this year, according to analysts at Compass Point Research & Trading, a Washington-based financial firm.

It is like the too big to fail mortgage companies all over again.

Reward incompetence and law breaking.

Now, debt collectors will NOT get away with everything; many regularly violate the Fair Debt Collection Practices Act, and regard the settlements they pay as a cost of doing business.

And, they are getting worse:

According to annual reports filed by the F.T.C., the number of complaints about “false threats of lawsuits” from collectors more than doubled from roughly 12,000 in 2008 to more than 30,000 in 2012.

(from the same New York Times story on debt collectors I linked to last week)

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