On May 22, Congressman Mark DeSaulnier (CA-11), a member of the House Committee on Education and Labor, pushed an effort to shed light on the performance of private student loan servicing companies by requiring the Consumer Financial Protection Bureau (CFPB) to collect and publish data from these companies including customer service interactions and successful enrollment in repayment plans. The amendment was included in the Consumers First Act (H.R. 1500), a bill to reverse the Trump Administration’s persistent attacks on the CFPB, which passed the U.S. House by a vote of 231-191.
“Student loan servicing companies are responsible for guiding millions of Americans through the repayment process, yet they face minimal accountability for their performance,” said Congressmen DeSaulnier. “Evidence suggests that servicers often fail to assist borrowers, and instead make it more difficult for borrowers to make informed decisions and seek relief in times of distress. This amendment will bring much-needed transparency to the industry, and will ensure that these companies are held accountable for the quality and accuracy of their service.”
“Congressman DeSaulnier’s amendment shines a spotlight into the darkest corners of the student loan market,” said Seth Frotman, Executive Director of the Student Borrower Protection Center and former CFPB Student Loan Ombudsman. “For too long, student loan companies have been free to operate in the shadows, leaving borrowers, law enforcement officials, and lawmakers without key data and information necessary to spot risks and halt illegal practices.”