US$2.4 Million to Settle Illegal Debt Collection Charges

Xerox wants to see the end of the case where one of its subsidiaries violated debt collection laws and overcharged borrowers in Massachusetts.

The matter is not related to printers or supplies or fees but rather to ACS Educational Services, which it acquired in 2009.

According to, in 2009, ACS operated as a lender of student loans through Xerox Education Services (XES).

XES was investigated at the end of 2015 and found to have failed to properly process applications for federal loan relief associated with the Income-Based Repayment Plan under the Higher Education Act. Borrowers of student loans were forced to pay extra when they couldn’t meet their payments. As a result, Xerox was charged with violating debt collection laws.

XES will now pay US$2.4 million to the state of Massachusetts. US$400,000 will be used to compensate 800 borrowers who tried to apply for relief but couldn’t enroll.

The company revealed it would stop illegal debt collection practices and establish a “Borrower Advocacy Group” to help borrowers apply for repayment plans.

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