Financial Obligation Collectors Lose Suits Against Education Department

April 25, 2015 Nemes Education

A federal judge on Tuesday dismissed claims against the United States Department of Education brought by four of its contracted student loan financial obligation collectors after the department chose not to award them added business.Judge Francis Allegra of the United States Court of Federal Claims tossed the suits in a sealed order, court filings show. ManyThe majority of the files in the case are either secret or heavily redacted. The Huffington Post was unable to obtain a copy of the court order on Tuesday.Coast Specialist

, Business Recovery Systems, National Recoveries, and Pioneer Credit Recuperation sued in March after the Education Department said it wouldn’t send them anymore accounts under their existing contracts. The Education Department said Feb. 27 that the four companies and West Asset Management had actually misguided distressed customers “at unacceptably high rates. “

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