On November 8, 2021 the Federal Trade Commission (FTC) announced that it entered into a stipulated order with a payment processor, resolving allegations that the payment processor violated Section 5 of the Federal Trade Commission Act (FTC Act) and the Telemarketing Sales Rule (TSR) by facilitating payments related to an unlawful student…
On September 30, 2021, the Minnesota Attorney General (“Minnesota AG”) announced that a federal bankruptcy court had approved $23.6 million in student debt relief and $15.8 million in restitution for students of two for-profit universities that allegedly engaged in consumer fraud and illegal lending practices. The settlement, originally announced in March 2021, resolved allegations that the universities misled students…
On September 20, 2021, the Department of Justice (DOJ) announced that it reached a settlement with the New Jersey Higher Education Student Assistance Authority (HESAA), resolving allegations that the state agency unlawfully obtained default judgments against two military servicemembers for student loan debt in violation of the Servicemembers Civil Relief Act (SCRA). In a…
On September 7, 2021, the Massachusetts Attorney General (AG) announced that it reached a settlement with a debt collection company, resolving allegations that the company engaged in unfair and deceptive debt collection practices in violation of state law. In particular, the company is alleged to have (1) initiated more than two…
On September 7, 2021, the Consumer Financial Protection Bureau (CFPB) announced that it had entered into a consent order with a group of affiliated education financing companies that provided students with income share agreements (ISAs) to finance postsecondary education. The consent order resolves allegations that the companies violated the Consumer Financial Protection Act (CFPA), Regulation Z…
On August 9, 2021, the California Department of Financial Protection and Innovation (DFPI) announced that it had entered into a settlement agreement with a Tustin-based student loan debt relief company, resolving allegations that the company violated the California Consumer Financial Protection Law (CCFPL) when it collected illegal advance fees under the Telemarketing Sales Rule (TSR). This settlement comes as the…
On May 28, 2021, Massachusetts Attorney General Maura Healy (Massachusetts AG) announced a settlement with a bank, acting as an agent for lenders, which requires the bank to permanently discharge debts and return payments made by certain former students of a regional for-profit university. The settlement requires the bank to refund over $30,000 in recent loan repayments made by certain Massachusetts borrowers…
On May 17, 2021, the Federal Trade Commission (FTC) announced a settlement with several student loan debt relief companies and their respective owners. The settlement stems from a complaint filed in 2019, in which the FTC alleged the companies charged illegal upfront fees and led consumers to believe the fees were going towards consumers’ student loans in violation of Sections…
On April 26, 2021, the California Department of Financial Protection and Innovation (DFPI) announced that it had entered into a settlement agreement with an online coding school, resolving allegations that the school engaged in deceptive acts and practices in violation of California’s new Consumer Financial Protection Law (CCFPL). The school offers its…
On April 6, 2021, the Pennsylvania Attorney General (Pennsylvania AG) announced that it reached an agreement with a Texas-based debt buyer concerning a portfolio of student loan debt it purchased from a now-defunct for-profit college. According to the Pennsylvania AG, the debt purchaser purchased the portfolio of loans after the for-profit college abruptly closed in December 2018 due to…