News & Analysis as of

Enforcement Actions Settlement Debt-Relief Industry

Sheppard Mullin Richter & Hampton LLP

CFPB Orders Defunct Debt-Relief Company to Pay $43 Million for Alleged Student Loan Abuses 

On May 1, the U.S. District Court for the Northern District of Illinois ordered the former owner of a now-defunct debt-relief company to pay over $43 million in restitution and penalties. The order resolves a lawsuit filed...more

Hudson Cook, LLP

CFPB Settles Decade-Long Case Against Foreclosure Relief Company and Four Attorneys for $12 million

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On February 8, 2024, after nearly a decade of litigation, the CFPB announced a final settlement for a total of $12 million with a Foreclosure Relief Company and four individual attorneys. The settlement resolves litigation...more

Hudson Cook, LLP

CFPB Bites of the Month - 2023 Annual Review - Student Lending

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In this article, we share a timeline of our monthly "bites" for 2023 applicable to student lending along with some information related to financial products and services offered to students....more

Hudson Cook, LLP

CFPB Bites of the Month - April 2023 - Stress Awareness Month and the CFPB

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In this month's article, we share some of our top "bites" for the prior month covered during the April 2023 webinar....more

Goodwin

Minnesota Attorney General Enters Into $20,000 Settlement with Student-Loan Debt Relief Company

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On February 14, 2023, the Minnesota Attorney General (AG) announced a  se​​​ttlement​ with a California-based student-loan debt relief company to resolve allegations that the company operated a fraudulent student loan debt...more

Goodwin

FTC Reaches $500,000 Settlement with Payment Processor for Its Role in Alleged Student Loan Debt Relief Scheme

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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...more

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FTC Settles Claims with Student Loan Debt Relief Companies

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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...more

Goodwin

Virginia AG Settles with Student Debt Relief Company

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On March 3, Virginia’s Attorney General announced that the state reached a settlement with a student debt relief company for alleged Virginia Consumer Protection Act (VCPA) violations. The simultaneously filed complaint...more

Goodwin

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

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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...more

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CFPB Settles with Florida Student Debt Relief Company for $3.8 Million

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On July 8, 2020, the Consumer Financial Protection Bureau (CFPB) announced that it reached a settlement with a Florida-based student debt relief company and three of the company’s officers. The complaint, which was filed in...more

Goodwin

CFPB Settles with Lender and Student Loan Debt Relief Companies Over Alleged Misuse of Credit Reports

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On May 14, 2020, the Consumer Financial Protection Bureau (CFPB) announced that it had entered into a proposed stipulated judgment and final order with a California-based mortgage lender and several affiliated individuals and...more

Goodwin

FTC Announces Settlement With Student Loan Debt Relief Companies

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On March 30, 2020, the Federal Trade Commission (FTC) announced that it had reached a settlement with three student loan debt relief companies and their owner, resolving allegations that the companies made false promises to...more

Goodwin

FTC Settles with Student Debt Relief Companies for $19 Million

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On September 28, 2018, the Federal Trade Commission (FTC) announced that it had reached a settlement with loan debt relief operators in connection with the coordinated federal-state enforcement initiative to target deceptive...more

Goodwin

FTC Settles Claims Against Student Loan Debt Relief Company for Over $17.7 Million

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On May 31, the Federal Trade Commission (FTC) announced that it settled claims against a student loan debt relief company as part of a coordinated federal-state enforcement initiative to target deceptive student loan debt...more

Goodwin

FTC Settles Claims Against Student Loan Debt Relief Company for Over $9 Million

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On May 31, the Federal Trade Commission (FTC) announced that it settled claims against a loan debt relief company in connection with its coordinated federal-state enforcement initiative to target deceptive student loan debt...more

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