Student Loan Servicer Settles Predatory Lending Claims – Finance and Banking

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United States of America: Student loan service settles predatory lending claims

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The Student Loan Service officer has reached a settlement with 39 state attorneys general, to resolve claims of unfair lending practices and predation.

The New York attorney general’s office alleged that the company directed borrowers into costly and cumbersome loan arrangements rather than affordable payment plans. The agreement includes canceling about $1.7 billion in loans and paying $95 million in compensation. In addition, the company is adopting a series of service reforms for future loans.

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