Anew report from the Consumer Financial Protection Bureau (CFPB) showed several issues with how student loan payments are being handled by service providers.
Some student loan servicers were automatically taking money from borrowers’ bank accounts even when they didn’t consent to automatic payments.
There were other times when borrowers were charged multiple times per month for payments, the agency said.
Another issue the report highlighted was servicers having listed the wrong amount of money owed by a borrower.
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The government agency said student loan borrowers reported that it took months — even years in some cases — to receive a refund related to autopay errors.
“Student borrowers continue to face lengthy delays and costly errors because of servicer failures,” said CFPB Director Rohit Chopra in a statement. “The CFPB is working to ensure there is greater accountability and improvements in the student loan system.”
