On May 20, the CFPB settled an enforcement action against a California-based telemarketing firm for practices related to student loan debt relief services. The Bureau has ordered the firm to permanently halt operations and pay a $400,000 civil money penalty, in addition to ordering the recission of all the firms existing contracts with consumers.
The Bureaus investigation revealed that the firm, which began selling and administering debt relief services in 2016, charged illegal advance fees for student loan debt relief services and misrepresented to consumers that advance fees would go toward paying down their loans. The company engaged lead generators to boost its inbound telemarketing calls through email and internet marketing campaig…
Read the full article at: https://natlawreview.com/article/cfpb-shuts-down-debt-relief-provider-over-fraudulent-student-loan-practices