Conduent Training Providers LLC, fka Xerox Training Providers LLC, dba ACS Training Providers LLC (CES), a contractor that serviced pupil loans for lenders below the Federal Household Training Mortgage Program (FFEL), has agreed to pay $7.9 million to resolve allegations that it violated the False Claims Act by submitting or inflicting the submission of false claims to the Division of Training. Previous to this settlement, CES paid $1.4 million to the Division of Training below a remediation plan to partially resolve the allegations and obtained a credit score for that cost below the settlement settlement.
Mortgage servicers are required to precisely report the impression of month-to-month pupil mortgage repayments, principal capitalization and different modifications to borrower accounts to the Division of Training. The settlement introduced at this time resolves allegations that between 2006 and 2016, CES knowingly didn’t make required monetary changes to borrower accounts and improperly handled some debtors as eligible for army deferments once they weren’t, leading to incorrect reporting to the Division of Training and losses to america. CES stopped servicing commercially held federal pupil loans in September 2019.
“The US expects servicers taking part in federal mortgage applications to precisely report quantities owed to the Division of Training,” stated Appearing Assistant Legal professional Normal Brian M. Boynton of the Justice Division’s Civil Division. “The decision introduced at this time displays the division’s dedication to pursuing entities that fail to fulfill their obligations to america.”
“Holding mortgage servicers accountable is a prime precedence for the Biden-Harris Administration, so I’m happy that improper conduct at Conduent Training Providers obtained the oversight and investigation it deserved,” stated Below Secretary of Training James Kvaal. “We’re grateful to the Division of Justice for working with the Training Division to make sure that CES is held accountable to debtors and taxpayers.”
The decision on this matter was the results of an investigation by the Justice Division’s Civil Division, Industrial Litigation Department, Fraud Part, with the help of the Division of Training’s places of work of Federal Scholar Support and Normal Counsel.
The claims resolved by the settlement are allegations solely and there was no dedication of legal responsibility.