May 29, 2020
Devos Sued Over Seizure of Borrowers’ Tax Refunds Amid Pandemic
Bloomberg News
,(Bloomberg) -- The Trump administration was accused in a lawsuit of illegally seizing millions of dollars in tax refunds from thousands of defaulted student borrowers despite a congressional ban on such collection activities by the federal government during the coronavirus pandemic.
The groups Student Defense and Democracy Forward filed the proposed class-action suit Friday in Washington, accusing Treasury Secretary Steven Mnuchin and Education Secretary Betsy DeVos, saying the collections are part of the government “botched” roll-out of the CARES Act pandemic relief law.
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