News & Analysis as of

Enforcement Actions Student Loans 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

Ballard Spahr LLP

CFPB takes action to ban Student Loan Pro from offering consumer financial products

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The CFPB has taken action to permanently ban Student Loan Pro and its owner, Judith Noh, from offering consumer financial products or services....more

Sheppard Mullin Richter & Hampton LLP

FTC’s Shuts Down Operators of Debt Relief Enterprise

On July 11, the Federal District Court for the Middle District of Florida granted the FTC’s request for a temporary restraining order against operators of a debt relief enterprise that unlawfully charged consumers illegal...more

Hudson Cook, LLP

CFPB Bites of the Month Webinar Recap: The CFPB and the Dust of June

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In this month's article, we share some of our top "bites" covered during the June 2024 webinar....more

Goodwin

CFPB Enters Consent Order Over Student Loan Debt Relief Services

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​​​​​​​On May 20, 2024, the Consumer Financial Protection Bureau (CFPB) announced that it had entered into a consent order with a California-based telemarketer that offered student loan debt relief services resolving...more

Hudson Cook, LLP

CFPB Issues Order Against Student Loan Debt Relief Telemarketer

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On May 20, 2024, the CFPB announced a settlement with a telemarketing company that offers student loan debt relief services to resolve allegations that it violated the Telemarketing Sales Rule ("TSR") and the Consumer...more

Goodwin

2023 Year in Review: Debt Collection and Debt Settlement

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Welcome to the Debt Collection and Debt Settlement chapter of our annual report Consumer Financial Services 2023 Year in Review. Looking Ahead to 2024 - Enforcement actions related to debt collection and debt...more

Ballard Spahr LLP

FTC bans group of student loan debt relief scammers from the debt relief industry

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The Federal Trade Commission (“FTC”) recently entered into proposed stipulations with a group of student loan debt relief providers to resolve allegations that the group conducted deceptive marketing and sales practices in...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

Orrick, Herrington & Sutcliffe LLP

FTC obtains TROs to halt student loan debt relief schemes

On May 8, the FTC announced that the U.S. District Court for the Central District of California recently issued temporary restraining orders (TROs) against two student loan debt relief companies that allegedly tricked...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

Minnesota AG Enters into Consent Order with Student Debt Relief Company

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On November 18, 2022, the Minnesota Attorney General’s Office (Minnesota AG) announced that it entered into a consent order with a California student-loan debt-relief company to resolve allegations that the company illegally...more

Hudson Cook, LLP

CFPB Announces Enforcement Action Against the Owner of a Student-Loan Debt Relief Company over Alleged Unauthorized Charges and...

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HIGHLIGHTS: The CFPB announced a complaint against a single defendant - the owner of a student loan debt relief company - concerning unauthorized charges and withdrawals from student borrower accounts in violation of the...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

Goodwin

California Settles with Student Loan Debt Relief Company for Allegedly Collecting Illegal Fees

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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 d​ebt relief company, resolving...more

Goodwin

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

California’s DFPI Launches Investigation and First Formal Enforcement Action

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On February 3, 2021, California’s Department of Financial Protection and Innovation (DFPI) announced that it has commenced its first formal enforcement action and launched a separate investigation into student loan debt...more

Goodwin

FTC Distributes $1.7 Million to Affected Consumers in Alleged Student Loan Debt Relief Scam

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On February 10, 2021, the Federal Trade Commission (FTC) announced that it will begin distributing over $1.7 million to consumers that it claims lost money as a result of an alleged student loan debt relief scheme. The...more

Goodwin

California DFPI Files First Enforcement Action Against Student Debt Relief Company

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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...more

Goodwin

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

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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...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

BCLP

CFPB Highlights Debt Relief Practices in Student Lending

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Student Lending CFPB Enforcement: Alleging Impermissible Debt Relief Service Advance Fees - Director Kraninger has outlined in various settings, the Bureau’s focus on protecting those often most vulnerable, including...more

Goodwin

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

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