CFPB Sues PHEAA for Illegal Collections on Discharged Student Loans on May 31

May 31, 2024, 04:55 PM

On May 31, the Consumer Financial Protection Bureau (CFPB) filed a lawsuit against the Pennsylvania Higher Education Assistance Agency (PHEAA), also known as American Education Services (AES), accusing the student loan servicer of illegally collecting on loans that have been discharged in bankruptcy. The lawsuit also alleges that PHEAA sent false information about consumers to credit reporting companies. This marks the second enforcement action by the CFPB against PHEAA within a month.