ED’s Pending PCA Small Biz Set Aside: More Litigation?

As the industry waits for news this Friday from the Department of Education (ED) regarding next steps in the unrestricted private debt collection contract litigation, another story has emerged.

A source familiar with what’s happening in this space reports to insideARM that ED recently signaled its intent to hold another procurement for Private Collection Agency (PCA) services in the months ahead – one set aside for small businesses – that could lead to even more litigation.

The recently-disclosed procurement plans are cited within a spreadsheet available for download on a page of ED’s website about forecasted contract opportunities.  The file is dated January 23, 2018, and indicates a procurement for default collection services is planned to begin during the Federal third quarter.  For those unfamiliar with Federal accounting practices, that’s this quarter.

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