Student loan servicer to pay DFPI $27, 500 for untimely response to information request

State Issues California DFPI Student Loans Missouri Consumer Finance

On April 24, the California DFPI entered into a consent order with a federal student loan servicer (respondent) that allegedly failed to provide the DFPI with timely access to requested borrower data. In late April of 2022, the U.S. Department of Education announced a one-time revision of income-driven repayments to address past inaccuracies.  To take advantage of this adjustment, the Department of Education required borrowers to submit a loan consolidation application by April 30, 2024.  The DFPI requested information from respondent on student loan borrowers for the purpose of completing outreach to impacted borrowers ahead of the loan consolidation application deadline. Respondent provided this information 17 days after the deadline set by the DFPI. 

To resolve DFPI’s allegations, respondent agreed to pay a penalty in the amount of $27,500.