Continental Service Group v. United States
The case involved an appeal from the Court of Federal Claims in a case brought by several companies challenging the Department of Education’s process for awarding debt collection contracts for federal student loans in default. The trial court issued a preliminary injunction barring the Department of Education from assigning or reassigning certain student loan debts in default to debt collectors with whom it had valid contracts. The Bureau’s amicus brief argued that the preliminary injunction harmed borrowers because, as a result of the injunction, borrowers will face greater obstacles when seeking to exercise their right under federal law to cure their default and enroll in an income-driven repayment plan.