Branch² Intelligence
‘I’ve no idea how they got her number’: My student-loan servicer called a friend after I missed a payment. Is that legal?
Key takeaway
A student-loan servicer contacted a borrower's friend after a missed payment, raising legal and reputational risks for servicers.
- Step 1Student-loan servicer contacts borrower's friend after missed payment, potentially violating FDCPA and privacy laws.
- Step 2Regulatory investigation or lawsuit increases compliance costs and reputational risk for the servicer.
- Step 3Higher compliance costs and potential fines reduce profitability for servicers, affecting their stock valuations and creditworthiness.
Source: MarketWatch
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