On September 17, the California DFPI announced enforcement actions against three companies for allegedly making false representations regarding student loan debt relief and charging fees for providing student loan debt relief services before performing any work. According to the orders, which can be found here, here and here, the companies’ actions violated the California Consumer Financial Protection Law, the federal Telemarketing Sales Rule, GLBA and the FTC’s recent Impersonation Rule.
The announcement highlighted three enforcement actions targeting companies that are alleged to have charged consumer advance fees in connection with providing student debt relief services and were engaged in an unlawful student loan debt relief practice. The companies were ordered to cease and desist from soliciting and collecting advance fees before providing services. Additionally, the companies were directed to rescind all outstanding contracts with California consumers, issue refunds and pay penalties.
