Quest for Unrestricted Dept. of ED Collection Contract Enters Round 4

In the last few weeks, several new lawsuits have been filed against the Department of Education (ED) by private collection agencies (PCA). This marks round 4 in the on-going quest for the unrestricted (large) debt collection contract.

Backing up slightly, last month insideARM reported that four firms had notified the Court of Federal Claims of their intention to protest ED's request to dismiss the case of FMS v. USA as moot. On May 25, 2018, Judge Thomas C. Wheeler granted the motion for dismissal and lifted the February 26, 2018 preliminary injunction that prevented ED from recalling in-repayment accounts. -- and so ended round 3 of the quest. 

Since that dismissal, ED did in fact send notice to the firms operating under 2015 Award Term Extentions (ATEs) notifying them that the government will be recalling their accounts on July 3. Those firms are FMS Investment Corp. (FMS), Account Control Technology, Inc. (ACT), GC Services Ltd. Partnership (GC), Continental Service Group, Inc. (ConServe), and Windham Professionals (Windham).

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