Career Education Colleges and Universities Sends Letter to U.S. Department of Education, Federal Trade Commission, and Consumer Financial Protection Bureau Asking Them To Address Student Loan Debt-Relief Scams
Washington, DC – July 14, 2016 – America’s Career Education Colleges and Universities wrote the leaders of the U.S. Department of Education, Federal Trade Commission, and Consumer Financial Protection Bureau, asking them to establish an inter-agency coordinating committee to fight the growing student loan debt-relief scams in America.
In the letter, CECU president and CEO Steve Gunderson wrote:
“Every day, through the use of social media, trial lawyers are data-mining names and using this information to file misleading and unlawful actions against colleges for debt relief. The action, in the name of student loan debt forgiveness, is the classic misrepresentation seeking funds from students for loan forgiveness while promising actions that in most cases have no basis. Again this week our office has been filled with examples of scam postings on the web inviting students of any given college to call specific numbers to engage in student loan forgiveness. Such action not only is an injury to innocent students/graduates; it also impugns the reputation of high-quality career education schools by suggesting a problem when none exists.
“The Administration has been very aggressive in using an inter-agency coordinating committee to confront accusations of misconduct by our sector schools. We are asking that you engage the same effort and commitment to protect BOTH students and schools from this current scam engaged by some lawyers seeking monetary benefits at a cost to students.”