Loan Servicer- CFPB

Conduent Education Services settles case with the CFPB for $3.9 million

Yesterday, Conduent Education Services LLC (formerly known as ACS Education Services) reached a settlement* for $3.9 million with the Consumer Financial Protection Bureau.  The company had failed to process loan adjustments in a timely manner, causing some borrowers to pay more than they owed.  In addition to the fine, Conduent is also required to make repayments to affected borrowers but the amount of such payment wasn’t specified in the CFPB’s consent order.  Conduent said in 2017 it was winding down its student loan servicing operations and has transferred the loans it services to other providers.

The settlement follows Conduent’s agreement to pay $9 million to settle similar claims from NYS in January.  Since early 2017, the CFPB has also been in a  legal battle with Navient Solutions, the nation’s largest federal student loan servicer. The agency alleges the company misled borrowers and processed their payments incorrectly. Navient says the allegations are unfounded.