Department of ED vs. Collection Agencies Saga Will Come to a Head on April 16

In a status conference on March 21, 2019, the Court of Federal Claims (COFC) set a hearing date of April 16th to address a preliminary injunction that would prevent the Department of Education (ED, FSA or The Department) from recalling all┬áremaining accounts from four large private collection agencies (PCAs) that still hold Award Term Extensions (ATEs). The recall of these accounts would, for practical purposes, be a nail in the coffin for these firms because it would mean the loss of their Authority to Operate (ATO), which can take up to a year to get — even if they ultimately win their case.