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For years, borrowers have been going to court claiming that student-loan companies were illegally collecting on debt they had discharged in bankruptcy. Now, the nation’s top consumer watchdog says it agrees — and is ordering the firms to give consumers their money back.
The Consumer Financial Protection Bureau found that multiple student loan servicers violated the agency’s ban on unfair, deceptive or abusive acts and practices when they continued to collect on certain loans after borrowers exited bankruptcy proceedings,…
