Search Results: Student Loans

CFPB Files Lawsuit Against Largest U.S. Student Loan Servicer Over Deceptive Practices

On January 18, 2017, the Consumer Financial Protection Bureau (CFPB) announced that it had filed a lawsuit in the U.S. District Court for the Middle District of Pennsylvania against a servicer of private and federal student loans, alleging that the servicer used deceptive practices related to borrower repayment. The student loan servicer is…

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Washington AG Brings Suit Against National Student Loan Servicer for Deceptive Practices

On January 18, 2017, the Attorney General (AG) of Washington announced that it filed a lawsuit against the nation’s largest student loan servicer and related entities alleging deceptive lending, servicing, and debt collection practices. According the AG’s Complaint, ​​filed in King County, Washington Superior Court, ​the servicer engaged in a…

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Massachusetts AG Announces $2.4 Million Settlement with Student Loan Servicer Over Improper Servicing Practices

On November 22, 2016, the Massachusetts Attorney General announced that it entered into a settlement agreement with a national student loan servicing company over allegations the company violated various state and federal consumer protection laws.  The investigation into the company’s student loan servicing practices began in December 2015. According to…

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Vermont AG Settles Lawsuit with California Student Loan Debt Consolidation Company

On November 18, 2016, the Attorney General for the State of Vermont (Vermont AG) announced that it had entered into a settlement with a California student loan debt consolidation company related to the company’s business of helping consumers consolidate their loans to reduce their student loan debt.  As part of the settlement, the…

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Student Loan Company Ordered to Stop Doing Business in Kentucky

On September 27, 2016, the Kentucky Attorney General announced that on September 15, 2016, a Franklin Circuit Judge ordered a Florida-based student loan company to cease all operations in Kentucky.  The Attorney General’s lawsuit was filed after the Attorney General launched an investigation “into the company’s potentially misleading college loan forgiveness claims aimed…

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CFPB Issues Consent Order Against Education Company For Illegal Student Lending Practices

On September 12, 2016, the Consumer Financial Protection Bureau (“CFPB”) announced the issuance of a consent order with a for-profit college chain that allegedly deceived its students into taking out loans that were more expensive than advertised. For the last several years, the for-profit education company allegedly had enrolled hundreds of thousands of…

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Massachusetts AG Settles with Student Debt Relief Company Over Alleged Illegal Fees

On September 1, 2016, the Massachusetts Attorney General (“AG”) announced a settlement with a student loan debt relief company, over allegations the company charged illegal fees to enroll borrowers in income-based repayment plans and other loan modification services. The company allegedly offered “debt relief” services to borrowers, which included assisting borrowers…

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CFPB Monthly Complaint Snapshot Brings Bank Accounts into Focus

On August 31, 2016, the Consumer Financial Protection Bureau (CFPB) released its Monthly Complaint Report for August 2016, this month focusing on complaints concerning bank accounts and related services.  The report, which compiles data from the CFPB’s complaint database to compare consumer complaints by subject, geography, and company on a…

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CFPB Issues Consent Order Regarding National Bank's Student Loan Servicing Practices

On August 22, 2016, the Consumer Financial Protection Bureau (CFPB) announced that it entered into a consent order with a large national bank in relation to the company’s private student loan servicing practices.  The CFPB asserts that the bank’s practices allegedly increased costs and penalized certain borrowers, leading to illegal fees and inaccurate credit…

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Washington AG Settles Lawsuits with Six Student Loan Adjustors for Alleged Deceptive Practices

On April 7, 2016, the Washington Attorney General (“AG”) announced settlements with six student loan adjustment companies which were alleged to have “preyed on students” by charging excessive fees. The Washington AG claimed that these firms violated Washington’s Debt Adjustment Act and Consumer Protection Act by overcharging 346 Washington students…

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For-Profit Education Company Will Forgive $118,865 in Former Hawaii Student Loan Debt

On March 23, the Hawaii Attorney General (AG) announced that a consent judgment had been entered in Hawaii state court between a group of state attorneys general and a for-profit education company, under which the company will forgive approximately $118,865 in student loans for former Hawaii students. As previously covered by Enforcement Watch,…

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Massachusetts AG Announces Defrauded Student Borrowers Are Eligible for Debt Relief

​On March 28, the Massachusetts Attorney General (“AG”), together with the U.S. Secretary of Education, announced that more than 2,000 students who were allegedly defrauded​ by a national for-profit college are eligible to have their federal loans forgiven. In November 2015, the AG had submitted an application to the U.S. Department of Education…

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CFPB Settles Illegal Fees Allegations with Student Debt Relief Company

On March 15, 2016, the Consumer Financial Protection Bureau (CFPB) announced that it had entered into a consent order and settlement with a national student debt relief company over allegations that the company charged illegal and excessive fees. According to the Complaint, the company operated online student debt management websites that offered services related to…

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FDIC and Federal Reserve Settle Claims Against Bank and Financial Aid Refund Distributor

On December 23, the FDIC and Federal Reserve each announced settlements in closely related enforcement actions against a bank and a company that distributed financial aid refunds.  The FDIC settled its claims for deceptive practices in violation of Section 5 of the Federal Trade Commission (FTC) Act with each defendant.  The Federal Reserve brought its Section 5…

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Two Student Debt Relief Companies Banned from Operating in Massachusetts

On November 24, the Massachusetts Attorney General’s Office (“AG’s Office”) announced​ that it has reached two separate settlement agreements with student debt relief companies.  The two companies agreed to assurances of discontinuance and agreed to pay $56,000 and $40,000 respectively relating to allegations of charging illegal upfront fees prior to delivering​ full…

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DOJ and State AGs Obtain $100 Million in Student Debt Relief for Students of For-Profit Colleges

On November 16, 2015, the DOJ announced a settlement with a national for-profit education company over alleged violations of the False Claims Act and the Higher Education Act. The settlement resolves four separate qui tam suits filed against the company in federal court. In conjunction with the DOJ announcement, the Attorneys General…

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