» Subscribe Today!
More of what you want to know.
The Daily News
X

Forgot your password?
Skip Navigation LinksHome >
VOL. 127 | NO. 45 | Tuesday, March 06, 2012

Consumer Agency Takes Student Loan Complaints

DANIEL WAGNER | AP Business Writer

Print | Front Page | Email this story | Comments ()

WASHINGTON (AP) – The government's new consumer protection agency started accepting complaints Monday about student loans.

The Consumer Financial Protection Bureau said it expects complaints about billing, confusing advertising and collection by private student lenders. It will relay complaints about federal student loans, such as Stafford and PLUS loans, to the Department of Education.

Americans owe more to student lenders than they owe to credit card issuers or any other category of unsecured lender, the CFPB said. Mortgages are considered secured loans because banks can foreclose on the house if a borrower stops making payments.

"Getting a higher education can mean taking on significant debt – a big decision with a lot of consequences," CFPB Director Richard Cordray said in a statement.

The CFPB was created by Congress to oversee parts of the financial industry that were poorly regulated before the financial crisis. It will serve as a single contact point for consumers with complaints about most types of financial products.

Financial companies are expected to respond to consumer complaints within 15 days and resolve them within 60 days.

The agency is already accepting complaints about credit cards, mortgages and checking accounts. Consumers wishing to lodge a complaint can visit www.consumerfinance.gov or call 855-411-2372.

The CFPB has collected thousands of comments about private student loans from consumers and lenders and from within higher education since it invited opinions in November. It is analyzing those comments for a report to Congress later this year.

Follow Daniel Wagner at www.twitter.com/wagnerreports

Copyright 2012 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.

Sign-Up For Our Free Email Edition
Get the news first with our daily email


 
Blog Get more from The Daily News
Blog News, Training & Events
RECORD TOTALS DAY WEEK YEAR
PROPERTY SALES 38 349 15,066
MORTGAGES 111 449 19,779
FORECLOSURE NOTICES 33 91 3,886
BUILDING PERMITS 0 512 35,842
BANKRUPTCIES 62 309 14,343
BUSINESS LICENSES 18 138 5,129
UTILITY CONNECTIONS 69 385 21,817
MARRIAGE LICENSES 13 106 4,663

Weekly Edition

Issues | About

The Memphis News: Business, politics, and the public interest.