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CFPB Temporarily Halts $71 Million Student Loan Relief Scheme

Oct. 30, 2019, 8:31 PM

The Consumer Financial Protection Bureau won a temporary restraining order against a California-based student loan debt relief company that the bureau alleges charged more than $71 million in improper fees.

The CFPB alleges that the Consumer Advocacy Center Inc. and several of its operating subsidiaries charged improper advance fees to student loan borrowers seeking assistance when they fell behind on their payments and made false representations on the students’ behalf to student loan servicers.

The company also did not notify consumers that they were submitting forbearance applications to student loan servicers, among other alleged violations, according to a complaint filed...

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