WASHINGTON, D.C. – Today, the Consumer Financial Protection Bureau (CFPB) sued student loan servicer Pennsylvania Higher Education Assistance Agency (PHEAA), which does business as American Education Services (AES), for illegally collecting on student loans that have been discharged in bankruptcy and sending false information about consumers to credit reporting companies. The CFPB’s lawsuit asks the court to order PHEAA to stop its illegal conduct, provide redress to borrowers it has harmed, and pay a civil penalty.
According to PYMNTS Intelligence data, 95% of U.S. credit unions (CUs) are now wooing prospective Gen Z members. However, as “How Credit Union Innovation Can Drive Gen Z Engagement, makes clear, Gen Z consumers are a fickle bunch. In the past year, 42% of Gen Z CU members switched their primary financial institution (FI).
When I meet with collection teams, I always ask collectors, “How do you know you are doing well every month?” Their answers give me a good sense of how much leadership values performance and recognizes the team. If the response is something like, “Well, I am still here,” or “I got a bonus last month,” it indicates limited discussion regarding individual performance. However, if the answer is, “Let me show you my performance reporting or scorecard,” it shows that there is a level of performance management in place.
In a letter sent to all staff today, U.S. Secretary of Education Miguel Cardona outlined comprehensive steps the Department is taking to improve Federal Student Aid (FSA) for students, families, borrowers, and schools. These efforts will ensure FSA works better and addresses ongoing management and operational challenges. Specifically, the Department is taking the following steps:
The proposal seeks to make executive compensation arrangements more sensitive to risk and would require complex risk management programs to ensure compliance.
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