OIG Investigative Reports, Consumer Debt Collection Firm to Pay Over $6 Million in Connection With Defaulted Student Loans Skip to main contentAbout UsContact UsFAQs Language Assistance Englishespañol中文: 繁體版Việt-ngữ한국어TagalogРусский U.S. Department of Education Search for: Toggle navigation U.S. Department of Education Student Loans Grants Laws Data About ED OFFICES Home Reports & Resources Programs/Initiatives News Office Contacts Investigative Reports FOR IMMEDIATE RELEASE: Monday October 16, 2000 http://www.usdoj.gov CIV (202) 514-2007 TDD (202) 514-1888 Consumer Debt Collection Firm to Pay Over $6 Million in Connection With Defaulted Student Loans Washington, D.C. - A consumer debt collection company will pay the United States more than $6.4 million to settle allegations that it made false claims in connection with defaulted student loans under the Federal Family Education Loan Program and the William D. Ford Direct Student Loan Program, the Justice Department announced today. The settlement resolves allegations that CSC Accounts Management Inc., d/b/a CSC Credit Services, Inc. (CAMI) submitted claims for payments of commissions and incentive bonuses relating to certain defaulted student loans that were consolidated in violation of applicable laws and regulations. The settlement also resolves allegations that CAMI wrongfully certified that certain loans were eligible for consolidation, and claimed commissions of 18.5% on certain consolidated loans when it was entitled to a commission of only 10%. "Today's settlement is an example of the Justice Department's determination to ensure that federal funds are protected from fraud and abuse," said David W. Ogden, Assistant Attorney General for the Civil Division. The charges initially were brought under the qui tam or whistleblower provisions of the False Claims Act by three individuals, Wanda Washington, Donald George, and Joseph C. Molina. The United States intervened in the lawsuit and filed its complaint in the District of Columbia in May 1999. The whistleblowers will receive nearly $900,000 as their share for bringing the matter to the attention of the government. Under the qui tam provisions of the False Claims Act, a private party or relator can file an action on behalf of the United States and receive a portion of the settlement if the government takes over the case and reaches a monetary agreement with the defendants. The case was investigated by the Department of Education Office of the Inspector General and the Department of Education Office of Student Financial Assistance, Debt Collections Service. The Justice Department's Civil Division negotiated the settlement. Top Printable view Share this page Last Modified: 02/28/2005 How Do I Find... Student loans, forgiveness College accreditation No Child Left Behind FERPA FAFSA 1098-E Tax Form 2015 Budget Proposal More > Information About... Transforming Teaching Family and Community Engagement Early Learning K-12 Reforms More > Connect Facebook Twitter YouTube Email RSS Google+ More > MISUSED FOIA OIG Fraud Hotline Our mission is to promote student achievement and preparation for global competitiveness by fostering educational excellence and ensuring equal access. Student Loans Repaying Loans Defaulted Loans Loan Forgiveness Loan Servicers Grants & Programs Apply for Pell Grants Grants Forecast Open Grant Competitions Find Grant Programs by Eligibility Laws & Guidance No Child Left Behind FERPA Civil Rights Data & Research Education Statistics Postsecondary Education Data State Education Data Nation's Report Card What Works Clearinghouse About Us Contact Us ED Offices Jobs News FAQs Budget, Performance Notices FOIAPrivacySecurityInformation qualityInspector GeneralWhitehouse.govUSA.govBenefits.govRegulations.gov
Consumer Debt Collection Firm to pay over $6 Million in Connection with Defaulted Student Loans Washington, DC, October 16, 2000
Published by the Department of Education, Office of Inspector General on 2000-10-16.
Below is a raw (and likely hideous) rendition of the original report.