California’s new consumer finance regulator filed its first enforcement action Wednesday, suing a student debt relief provider for alleged deceptive conduct, and announced broader investigation of the industry.
The California Department of Financial Protection and Innovation said it filed an administrative complaint against Optima Advocates Inc., alleging the firm made false promises about its ability to help students discharge debts up to $26,510 and charged “exorbitant” fees before services were rendered.
Student loan borrowers in many instances took on more debt to pay the fees charged by the Irvine, Calif.-based company, the California regulator said.
Optima’s actions violated the California ...
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