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Sallie Mae Investigated for SCRA Violations

SALLIE MAE INVESTIGATED FOR SCRA VIOLATIONS – The loan servicer expected to be hit with an enforcement action by the Federal Deposit Insurance Corporation for violating the Servicemembers Civil Relief Act and the Equal Credit Opportunity Act, the company disclosed in a regulatory filing released Monday. The company could face monetary penalties and be forced to pay restitution as a result. The Servicemembers Civil Relief Act requires student loan servicers to lower interest rates on loans to 6 percent for active-duty members of the military if requested, and to apply the lower interest rate retroactively. The filing: http://1.usa.gov/12ZPIoe A Sallie Mae spokeswoman: “We’ve invested a lot in our compliance efforts but we understand some concerns persist, and we realize that the bar is getting higher. We will do what it takes to get this right under the enhanced standards of the new environment.”

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