New York State recently implemented new, stronger laws regulating debt collectors – including debt collectors that pursue student loan borrowers. The changes go above and beyond what is required under federal debt collection laws and make New York one of the strongest states in the country for consumer protection.
Strengthening consumer debt collection laws is critical for student loan borrowers. Nearly one in four borrowers are delinquent or in default on their student loans, and that figure has been stubbornly persistent despite the addition of new repayment programs and increasing scrutiny on student loan servicing. It doesn’t help that federal student loan collectors have enormous powers to pursue defaulted borrowers. Private student loan lenders often engage in aggressive tactics as well, and may resort to filing lawsuits against student loan borrowers.
Here’s a summary of some of the major new rules in New York protecting student loan borrowers and other consumers:Read More