The Education Department is targeted in a new Freedom of Information Act lawsuit seeking details about federal debt collection policies and how they affect minority borrowers.
The National Consumer Law Center, American Civil Liberties Union and ACLU of Massachusetts filed the complaint in U.S. District Court in Boston. They allege that the department didn't fully disclose "critical information" related to its oversight of private companies that collect on federal student loans.
Black and Latino adults are nearly twice as likely as whites to hold student debt, the groups noted, and the NCLC has found that in the past, federal practices gave debt collectors reason to violate borrowers' rights. Sens. Booker (D-NJ) and Mike Lee (R-UT) introduced legislation (The Stop Debt Collection Abuse Act of 2015, S. 2255) in November meant to crack down on abuses.
The Stop Debt Collection Abuse Act of 2015, S. 2255 can be viewed here.