U.S. cracks down on debt collection of private student loans

U.S. cracks down on debt collection of private student loans(This September 18 story corrects amount to $ 21.6 million from $ 26.1 million in first, 10th paragraphs) By Lisa Lambert WASHINGTON (Reuters) – The U.S. consumer financial watchdog on Monday ordered National College Student Loan Trusts and its debt collector, Transworld Systems Inc, to pay at least $ 21.6 million for attempting to collect on possibly non-existent or out-of-date loans. The Consumer Financial Protection Bureau alleged that the companies sued borrowers without being able to prove the debt was owed or pursued collection on loans that were too old to sue over, and relied on false and misleading legal documents. The CFPB said the trusts had filed at least 486 lawsuits on debt where the statute of limitations for collections had expired.



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