CFPB Halts Student Loan Debt Relief Scam

On Wednesday, March 30, 2016, the CFPB issued a consent order to stop a student loan debt relief scam which allegedly tricked borrowers into paying fees for federal loan benefits and misrepresented to consumers it was affiliated with the U.S. Department of Education. The CFPB ordered the company, Student Aid Institute, Inc., and its CEO, Steven Lamont, to pay a penalty, halt debt relief services, and stop charging affected customers. The Bureau also is permanently barring the company and Lamont from the debt relief industry.