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Bulletin 2023-01: Unfair Billing and Collection Practices After Bankruptcy Discharges of Certain Student Loan Debts

Borrowers are able to obtain discharges on student loans through bankruptcy proceedings, which eliminate their obligation to pay. For some types of student loans, borrowers must demonstrate that the loans would impose an undue hardship if not discharged. Other types of student loans, however, are discharged under standard bankruptcy court orders. Student loan servicers who collect on student loans that are discharged by a bankruptcy court are likely engaging in an unfair act or practice in violation of the Consumer Financial Protection Act (CFPA). The Consumer Financial Protection Bureau (Bureau or CFPB) is issuing this bulletin to notify regulated entities how the Bureau intends to exercise its enforcement and supervisory authorities on this issue.

CFPB Bulletin 2023-01

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