The CFPB sued student-loan company PHEAA, accusing it of ignoring borrowers' bankruptcy discharges and sending false information to credit agencies.

On Friday, the Consumer Financial Protection Bureau sued the Pennsylvania Higher Education Assistance Agency, or PHEAA, which is a student-loan servicer that works with American Education Services to facilitate private student loan programs.

According to the press release, the CFPB accused PHEAA of illegally collecting payments from student-loan borrowers whose loans had already been discharged in bankruptcy and sending “false information” to credit reporting agencies. Those actions violate the Consumer Financial Protection Act and the Fair Credit Report Act, the lawsuit said.