I-Team: Company That Handles Billing For MEFA Student Loans Agrees To Pay $2.4 Million

I-Team: Company That Handles Billing For MEFA Student Loans Agrees To Pay $2.4 Million


TONIGHT, AN EYE TEAM FOLLOW UP. THE ATTORNEY GENERAL IS TAKE ACTION AGAINST IT THE COMPANY THAT HANDLES STUDENT LOANS. Reporter: TO PAY FOR COLLEGE, TANYA MARTIN TOOK OUT SEVERAL LOANS WITH THE STATE AGENCY BUT AFTER GRADUATING AND PAYING THOUSANDS, THERE IS BARELY A DENTS IN HER DEBT. I STILL OWE $70,000. I DON’T KNOW HOW. THE NUMBERS DON’T MATCHUP. Reporter: SHE CANCELED HER MED SCHOOL DREAMS BECAUSE THE COMPANY DOESN’T OFFER A MORE AFFORDABLE PLAN. MISS A PAYMENT AND WE’LL COME AFTER YOUR HOUSE. Reporter: MORE THAN 500 COMPLAINTS WERE FILED AGAINST THE COMPANY INCLUDING DESCRIBE PARTICULAR AS FINANCIAL TERRORISM. HOW BIG IS THIS? THIS IS A BIG DEAL. Reporter: THE I-TEAM WAS TOLD THAT ACS HAS AGREED TO PAY $2.4 MILLION. THE COMPANY MISHANDLED IT AND SCREWED IT UP AND DIDN’T GET STUDENTS IN THE PAYMENT PLAN THEY CAN AFFORD Reporter: THERE ARE ALLEGATIONS OF EXCESSIVE LATE FEES AND HARASSING DEBT COLLECTION PRACTICES. WE LEARNED OF THE PROBE EARLIER AND TOOK THE QUESTIONS TO THE COMPANY. WHAT’S YOUR REACTION TO THAT? I CAN’T COMMENT ON THAT. Reporter: HOW CONCERNED DOES THAT MAKE YOU? AS I SAID TO YOU, WE ARE A LOAN SERVICING PROVIDER. Reporter: THE AG TELLS THE I-TEAM SHE IS CONFIDENT THAT THERE ARE IMPROVEMENTS IN PLACE TO PROTECT BORROWERS. WE NEED TO SEND MESSAGES TO LOAN COMPANIES THAT WE TAKE THIS SERIOUSLY AND MAKE SURE PEOPLE PLAY BY THE RULES SO THAT PEOPLE, ESPECIALLY STUDENTS DON’T GET HURT. Reporter: AS PART OF THE SETTLEMENT, THE COMPANY AGREED TO ESTABLISH A UNIT THAT WILL HELP BORROWERS GET INTO

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