Search Results: Student Loans

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

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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Maryland AG Settles with Student Loan Debt Buyer for $2.6M

On November 16, 2020, the Maryland Attorney General (Maryland AG) announced a settlement with a Texas-based debt buyer regarding a portfolio of student loan debt the buyer purchased from a court-appointed receiver following the closure of a for-profit college. The $2,622,877 settlement immediately discharges any outstanding loans and refunds 75%…

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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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Massachusetts AG Obtains Judgment Against Student Loan Debt Relief Company

On October 7, 2020, the Massachusetts Attorney General’s Office (Massachusetts AG) announced a judgment obtained against a student loan debt relief company in Suffolk Superior Court for allegedly unlawful and predatory business practices. According to the AG, the company charged unlawful upfront and continuing fees to consumers, misrepresented the scope…

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CFPB and 47 States Enter Settlement with Holder of Private Student Loans for Allegedly Providing Substantial Assistance in For-Profit Educator's Unfair Practices

On September 15, 2020, the Consumer Financial Protection Bureau (“CFPB”) announced that it had filed a proposed stipulated judgment against a Delaware statutory trust after a settlement agreement was reached between the trust and forty-seven states plus the District of Columbia.  The trust was created to purchase and hold beneficial…

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For-Profit College Ordered to Pay $3 Million in Civil Penalties for Engaging in Deceptive Student Lending Practices

Piggy Bank with a Graduation Cap

On August 21, 2020, Colorado’s Attorney General announced that the Denver District Court ruled in the state’s favor and found that a for-profit college violated the Colorado Consumer Protection Act (“CCPA”) and the Uniform Consumer Credit Code (“UCCC”) in operating its institutional loan program. The matter was initiated after a two-year investigation that…

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Pennsylvania AG Settles with Student-Loan Debt-Relief Consumer Financing Company

​On August 4, 2020, the Pennsylvania Office of Attorney General (Pennsylvania AG) announced that it reached a settlement with a company providing financing to consumers seeking student-loan debt relief. According to the Pennsylvania AG, the company violated the Pennsylvania Consumer Protection Law and the federal Truth in Lending Act (TILA) through its alleged…

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Massachusetts AG Settles with For-Profit Education Services Debt Buyer

On July 30, 2020, the Massachusetts Attorney General (Massachusetts AG) announced a settlement with a Nevada-based debt buyer regarding a portfolio of loan debt it purchased from a for-profit education company. The settlement resolves the Massachusetts AG’s allegations that, between 2010 and 2016, the for-profit education​ company​​ ​misled students by…

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Minnesota AG Settles with Out-of-State Student Loan Debt Settlement Company for Full Restitution of Illegal Fees

​On April 29, 2020, the Minnesota Attorney General’s Office (AG) announced that it had settled its claims against a California-based student loan debt settlement company for alleged violations of Minnesota’s Debt Services Settlement Act, Prevention of Consumer Fraud Act, and Uniform Deceptive Trade Practices Act.  Specifically, the AG alleged that the company…

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Court Orders Defendants in Student Debt Relief Scheme to Pay Over $10.7 Million in FTC Case

FTC

​On March 10, 2020, the Federal Trade Commission (FTC) announced ​that it obtained a permanent injunction and monetary judgment from the U.S. District Court for the Central District of California (the Court) against three defendants that allegedly deceptively marketed student loan debt relief services. The Court’s order was entered on February 27, 2020, and…

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