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CFPB Takes Action to Shut Down Illegal Student Debt Relief Scheme
On Tuesday, March 15, 2016, the CFPB requested a federal district court enter a final judgment and order the shutdown of Student Loan Processing.US, a student debt relief operation. The company allegedly charged customers millions of dollars in illegal upfront fees for federal student loan services.
If the proposed consent judgment is entered by the court, Student Loan Processing must close operation within 45 days. Additionally, the company and its owner would be permanently barred from providing debt relief and student loan services. The judgment order also asks the company to pay $8.2 million in relief and damages to customers, however, much of the payment is suspended due to Student Loan Processing’s inability to pay. A civil penalty of $1 will also be assessed so customers could potentially receive additional relief from the CFPB Civil Penalty Fund.