NPR, November 25, 2019: Consumer Agency Failed To Protect Student Loan Borrowers, Lawsuit Says
A nonprofit student loan group is suing the nation’s most powerful consumer watchdog agency. The lawsuit, first obtained by NPR, alleges that the Consumer Financial Protection Bureau has abandoned its obligation to oversee companies that manage student loans, in particular, a troubled loan forgiveness program.
“We are suing the Department of Education and the CFPB because they are not doing their jobs,” says Natalia Abrams, the founder of Student Debt Crisis. Abrams’ group works both on policy issues and directly with borrowers.
But she says a breakdown in government supervision has created such a mess that her organization is getting overrun with calls from people who need help. The lawsuit essentially says it’s not OK that Abrams’ group has been forced to divert resources to handle a problem the government should be dealing with.