On 1 May 2019 the Consumer Financial Protection Bureau (CFPB)
announced a consent order with student loan servicer Conduent
Education Services LLC (CES) (the company), formerly ACS Education
Services, for alleged violations of sections 1031 and 1036 of the
Dodd-Frank Wall Street Reform and Consumer Protection Act of 2010
in connection with servicing loans for borrowers under the Federal
Family Education Loan Program, 20 U.S.C. §§ 1071 et
seq.
The CFPB alleges that the company engaged in unfair acts or
practices for failing to timely process adjustments to borrower
loan accounts in connection with forbearance, deferment, and
income-based repayments, thereby causing errors to the principal
amount balances. This purported failure led to consumer harm by
causing borrowers to pay incorrect loan amounts. The CFPB sets
forth that, in most instances, the company knew loan information
was inaccurate; yet, it failed to inform borrowers of this fact and
provided billing
