Senators claim 'faulty' student loan transfer led to 'millions of consumer credit reporting errors'

By Free Republic | Created at 2024-12-20 00:32:36 | Updated at 2024-12-29 06:53:21 1 week ago

Senators claim 'faulty' student loan transfer led to 'millions of consumer credit reporting errors'
JusttheNews ^ | 12/19/24 | Misty Severi

Posted on 12/19/2024 4:15:09 PM PST by CFW

A coalition of Democratic senators on Wednesday night sent a letter to federal agencies about an investigation that found that a "faulty" transfer of student loan accounts in 2023 resulted in “millions of consumer credit reporting errors."

The error occurred when the student loan provider NelNet transferred student loan accounts to MOHELA last year. The change resulted in nearly 2 million duplicate student loan records appearing on borrowers’ credit reports, and negatively impacted hundreds of thousands of borrowers’ credit scores, which were incorrectly reported for up to a year and a half, per CNBC.

The senators, led by Massachusetts Sen. Elizabeth Warren, notified the Consumer Financial Protection Bureau (CFPB) and Department of Education (DOE) of the findings in a letter, which claimed the problem appeared to stem from MOHELA's failure to notify several credit reporting agencies ahead of the transfer.

The senators urged the federal government to hold NelNet, MOHELA, and the credit reporting companies accountable for the errors and claimed those in fault do not plan to compensate impacted borrowers, or have taken responsibility for the errors so far.

(Excerpt) Read more at justthenews.com ...

TOPICS: Business/Economy; Extended News; Government; News/Current Events
KEYWORDS: consumercredit; fraud; government; studentloans

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Can government agencies do anything efficiently? Anything at all? It seems as if every government agency's goal and mission is to screw up whatever the agency is in charge of doing. In the private sector, such screw-ups would mean everyone involved would be fired and immediately shown the door. Entire departments would be disbanded. But with a government agency, everyone gets raises and the department gets a larger budget.

For an example, just look at the overall "success" of the student loan business since the federal government took over the sector. Every single aspect of student loans is a failure.

1 posted on 12/19/2024 4:15:09 PM PST by CFW

To: CFW

“We’re the ‘rat party and we’re here to help you.”

2 posted on 12/19/2024 4:16:47 PM PST by Paladin2

To: CFW

Ain’t nothing free, play stupid games win stupid prizes

3 posted on 12/19/2024 4:22:04 PM PST by Recompennation (Don’t blame me my vote didn’t count )

To: CFW

I don’t by it from a moment for these demorats. They had no problem with Act Blue fraudulently using credit cards charging consumers to political fund demonrats, now thy care about this, BS!.

They don’t care one wit, so basically I am force to ask what is the angle, what lie are they telling now?

4 posted on 12/19/2024 4:22:13 PM PST by Skwor

To: CFW

A coalition of DemocRAT senators is more properly labeled a “Rat Pac”.

5 posted on 12/19/2024 4:31:16 PM PST by Da Coyote (H)

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