Michigan AG joins coalition against certain student loan debt collection practices

(CBS DETROIT) - Michigan Attorney General Dana Nessel joined a coalition of 23 other attorneys general in filing an amicus brief on what they call abusive student loan debt collection practices.

The amicus brief is in support of the Consumer Financial Protection Bureau (CFPB), which filed a lawsuit alleging that 15 trusts bought student loan debt and engaged in illegal debt collection practices.

The lawsuit claims that collection agencies hired by the trusts used misleading and false affidavits and testimony to collect debt.

The coalition argues the trusts violated the Consumer Financial Protection Act of 2010.

"I have made consumer protection one of my office's top priorities and the CFPB has been a strong partner in providing remedies to illegal conduct," Nessel said in a statement. "The entities that purchase student loan debt from the original creditors have engaged in deceitful and unlawful debt collection practices, such as suing student loan debtors based on faulty, misleading, or incomplete credit information -- a clear violation of the Consumer Financial Protection Act. 

"I stand firmly with my colleagues in supporting CFPB's ability to enforce the prohibitions against unfair debt collection practices, which have had negative financial outcomes for many Michigan residents." 

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