In March 2016, the Consumer Financial Protection Bureau requested a federal court to shut down a student debt relief company that charged borrowers millions of dollars in illegal upfront fees and for federal student loan services. The court order would also require the company, Student Loan Processing.US, to pay refunds to thousands of harmed consumers and civil money penalty. If the proposed judgement is entered by the court, the company must:
- Shut down illegal operations: Student Loan Processing.US must shut down all operations within 45 days of the entry of the court’s judgement.
- Cancel all contracts with consumers and stop charging them.
- Pay consumer refunds.
- Stop participating in the debt relief and student loan industries.
- Ensure student loan borrowers do not miss important repayment benefits.
- Pay a civil penalty.
For more information, click here.
Teaching Suggestions
- Ask students to view the CFPB’s complaint against Student Loan Processing. and also here.
- The Department of Education offers numerous plans for borrowers to make payments more affordable. Ask students to explore several options available to them.
Discussion Questions
- How can you protect yourself from companies engaged in deceptive marketing practices, or otherwise violate federal consumer protection laws?
- Is it possible for government agencies to permanently shut down companies that defraud consumers?
Melissa Hart
Focus on Personal Finance, 7e 