Search Results: Student Loans

California DFPI Files First Enforcement Action Against Student Debt Relief Company

On February 3, 2021, the California Department of Financial Protection and Innovation (DFPI) announced its first formal enforcement action against an Irvine-based student debt relief company.  The DFPI’s action alleges that the company’s student debt relief practices violated the California Consumer Financial Protection Law and Student Loan Servicing Act. According to the DFPI, for over three…

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California DFPI Launches Investigation Into Four Student-Loan Debt-Relief Companies

On February 4, 2021, the California Department of Financial Protection and Innovation (DFPI) launched an investigation into whether four California-based student-loan debt-relief companies violated the new California Consumer Financial Protection Law (CCFPL) and Student Loan Servicing Act (SLSA).  The CCFPL took effect on January 1, 2021 and expanded the DFPI’s regulatory…

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Financial Aid Services Company Ordered to Pay $14.7 Million in Deceptive Practices Lawsuit

Piggy Bank with a Graduation Cap

On January 26, 2021, a California federal judge granted the Consumer Financial Protection Bureau’s (CFPB) motion for default judgment against a now-defunct financial aid services company.  The court also granted in part the CFPB’s motion for summary judgment against the company’s founder. The ruling resolves a complaint filed by the CFPB in 2015, previously covered ​by…

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Minnesota AG Settles with Student Loan Debt-Relief Company for Allegedly Unlawful Fee Collection

On January 14, 2021, Minnesota Attorney General Keith Ellison (Minnesota AG​​) announced that his office reached a settlement with a California-based student loan debt-relief company that allegedly collected unlawful fees from customers and made misrepresentations to them regarding its ability to forgive student loans. According to the Minnesota AG, the company allegedly made false promises to…

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CFPB Secures Consent Order Against Student Loan Servicer for Failure to Comply with 2015 Consent Order and Alleged Deceptive Acts and Practices

CFPB sign

On December 22, 2020, the Consumer Financial Protection Bureau (CFPB) announced​ that it had secured a consent order ​against a national student loan servicer based on its failure to comply with a 2015 consent order issued by the CFPB.  Specifically, the company misrepresented the minimum periodic payments owed by consumers on their student loans, misrepresented…

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Pennsylvania AG Halts Operations of Student Loan Forgiveness Company

​On December​ 16, 2020, the Pennsylvania Attorney General (Pennsylvania AG) announced ​a settlement with a California-based student loan forgiveness company for alleged violations of state consumer protection laws.  According to the Pennslyvania AG, the company used false advertising tactics and posted fraudulent customer reviews on the Better Business Bureau website.  Further, the company…

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FTC Reaches Settlement with California-Based Student Loan Debt Relief Companies

​On November 19, 2020, the Federal Trade Commission (FTC) announced that it had reached a settlement with three California-based student loan debt relief companies and their founder after they allegedly misled consumers by falsely promising that their monthly payments would go toward lowering their student loan debt. ​The complaint, filed in the U.S. District Court for the Northern District…

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NJ Attorney General Sues National Student Loan Servicer For Deceptive Practices

On October 20, 2020, New Jersey Attorney General Gurbir S. Grewal (“NJ AG”) and the New Jersey Division of Consumer Affairs announced that they had filed suit in New Jersey state court against a national student loan servicer for alleged unconscionable commercial practices and deception and misrepresentations made to thousands of New…

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