Xerox Pays $2.4M To Settle Allegations It Overcharged Student Loan Borrowers

Xerox does a lot more than make huge copy machines for your office. For more than a year, the company’s student loan servicing division has been under state and federal investigation for allegations that it violated debt collection laws and overcharged borrowers. Now Xerox has agreed to pay $2.4 million to close the book on one such investigation in Massachusetts. Massachusetts Attorney General Maura Healey’s office announced the settlement this week, resolving claims that Xerox Education Services — formerly known as ACS Education Services — charged excessive late fees, engaged in harassing debt collection practices, failed to process applications for federal repayment plans to help struggling students.